Mining industry helps the U.S. environment by using associated gas

A number of bitcoin mining projects in the U.S. are working to monetize the use of associated gas.
The movement toward less environmental burden inevitably faces the question of how to make the most efficient use of associated gas, which is often encountered by oil producers in the process of drilling wells. There are three options for the fate of this gas: it stays where it was found; it is sold, or it is utilized.
In the United States, most of the associated gas is burned off, but an increasingly effective solution in the United States is to place mining farms right on the site of the oil fields, in which case all of the associated gas is sent to a special generator that burns it and creates energy that is used to run bitcoin miners.
It is important that there is not just utilization of associated gas, but for oil and gas companies it becomes a very profitable activity. The fact that the U.S. oil and gas sector can find additional sources of revenue is highly appreciated by investors: currently, of the 11 sectors of the U.S. economy that are reflected in the S&P 500 Index, only energy companies have shown growth in the last almost 10 months.
The U.S. Department of Energy estimates the total profit of oil and gas industry at about $280 billion for the year. The Administration records low investment activity of the US oil companies in oil refining, which, on the one hand, is related to low profitability in a number of areas of such activities: with current prices for oil companies are often more profitable to sell crude oil than to refine it.
On the other hand, American oil companies understand that Washington’s position on supporting investments into alternative energy generation remains unchanged, which means that they are also moving in this direction, and efficient use of associated gas for them is an important element in such a trend.
Potentially, it could be a matter of. position President Joe Biden’s administration on cryptocurrency mining is to tie its existence in the U.S. to the use of alternative energy sources, an efficient and cost-effective solution to utilize associated gas could gain the support of the U.S. federal government.
A number of bitcoin mining projects in the U.S. are currently working on monetizing the use of associated gas: Crusoe Energy, Vespene, Northern Immersion, Giga, etc. According to Crusoe Energy, unlike the usual flaring of associated gas, its use to generate energy for bitcoin mining leads to a 63% reduction in the environmental load.
Globally, over the next 27 months, bitcoin mining through a more efficient use of associated gas could reduce the global environmental load by 2% if all associated gas in the United States is used to mine the #1 cryptocurrency.

Leave a Comment