Report: ExxonMobil Running Pilot Project to Supply Flared Gas for Bitcoin Mining

[Dave1]

Anyone still remember this?

ExxonMobil Running Pilot Project to Supply Flared Gas for Bitcoin Mining

Oil giant ExxonMobil (XOM) is running a pilot project to use what would otherwise be wasted gas from its North Dakota oil wells to power bitcoin mining operations, Bloomberg reported Thursday, citing people familiar with the matter.

The excess natural gas would have otherwise been burned off, or flared, because of the lack of enough pipelines.

https://finance.yahoo.com/news/exxonmobil-running-pilot-project-supply-192552868.html

This news is like two years ago, and it they continue to mine Bitcoin with those wasted gas, then most likely they could be in the profit now?

Or at least this is a good news for miners as bitcoin has been heavily criticize for it's mining as they say it affected the environment.

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[Yamane_Keto]

The process of mining Bitcoin by burning Flared Gas is not simply that there is an energy source and you insert the plug of the mining device into that source, as the gas is not burned if there is the possibility of storing it and selling it to the markets.

Burning the gas can either be a temporary process, as happens in flowback, where it is burned as a temporary measure to remove hydrostatic pressure, which is a stage before the well starts producing gas or as a temporary measure when problems occur.

Bitcoin mining resulting from this process is not a continuous thing, and therefore there will not be separate units in mining companies to exploit it, but rather a temporary thing.

If someone has more experience or knowledge, please add more links. Moving the topic to the mining board will give you better replies.

[Lucius]

If the only question is whether they made some kind of profit using what would otherwise have gone to waste, then the answer is probably positive. Apart from them, in the context of flared gas-mining Bitcoin, Saudi Aramco was also mentioned even before (2021).

If we read this post from @fillippone, it seems that ExxonMobil has expanded such a mining method outside the US. I don't know how successful it was and whether it's still there, but I have no doubt that those who advocate the idea that Bitcoin pollutes the environment will also find something negative in that.

[Rruchi man]

I tried to make some research to see the progress they have been able to make, there is no recent report on it.

If we read this post from @fillippone, it seems that ExxonMobil has expanded such a mining method outside the US. I don't know how successful it was and whether it's still there, but I have no doubt that those who advocate the idea that Bitcoin pollutes the environment will also find something negative in that.

From Fillippone's post

Exxon started with a few tests in North Dakota in partnership with Crusoe Energy (Winklevii have invested in it), but they are now expanding to Alaska, Nigeria, Argentina, Guyabbaa and Germany.

There is still gas flaring ongoing in Nigeria even though it was something that we heard will stop since like 2020, so maybe ExxonMobil were not able to make any progress with it.

[Aanuoluwatofunmi]

Anyone still remember this?

ExxonMobil Running Pilot Project to Supply Flared Gas for Bitcoin Mining

Oil giant ExxonMobil (XOM) is running a pilot project to use what would otherwise be wasted gas from its North Dakota oil wells to power bitcoin mining operations, Bloomberg reported Thursday, citing people familiar with the matter.

The excess natural gas would have otherwise been burned off, or flared, because of the lack of enough pipelines.

https://finance.yahoo.com/news/exxonmobil-running-pilot-project-supply-192552868.html

This news is like two years ago, and it they continue to mine Bitcoin with those wasted gas, then most likely they could be in the profit now?

Or at least this is a good news for miners as bitcoin has been heavily criticize for it's mining as they say it affected the environment.

The problem is the little challenges that may be felt in the aspect of mining using this new technology and the way to set up the infrastructure for the use, you have to agree with me that using a new process for the mining will take little more of efforts and time for evaluation before the conclusion for the overall release on the usage, so this may take more time than expected and there is more likely possible means that the channels and the technical ways to achieve this on a global range might not have been concluded yet, but its something that will reduce and ease the demand on energy consumption from the centralized government bodies.

[thecodebear]

I wasn't familiar with the ExxonMobil project, but I did learn of some company several years ago that was already doing this. Going to oil operations and getting contracts to set up bitcoin miners to use the flared gas. A great way to secure Bitcoin while using 100% purely wasted energy, therefore zero greenhouse effects because the gas gets burnt anyway.

[btc_angela]

I wasn't familiar with the ExxonMobil project, but I did learn of some company several years ago that was already doing this. Going to oil operations and getting contracts to set up bitcoin miners to use the flared gas. A great way to secure Bitcoin while using 100% purely wasted energy, therefore zero greenhouse effects because the gas gets burnt anyway.

Neither did I, guess though and it's obvious that they want to re-use everything and what a better way but to mine bitcoin or at least this is what I understand that they are doing. And so with that, it's a good news as we have been under the radar for years as supposedly bitcoin mining is "hurting the environment".

This is the argument that has been used so far, but has been debunked already.

So it's a win-win for Exxon is they are still mining bitcoin, they can have extra funds from those flared gas for mining operations.

[Zlantann]

From Fillippone's post

Exxon started with a few tests in North Dakota in partnership with Crusoe Energy (Winklevii have invested in it), but they are now expanding to Alaska, Nigeria, Argentina, Guyabbaa and Germany.

There is still gas flaring ongoing in Nigeria even though it was something that we heard will stop since like 2020, so maybe ExxonMobil were not able to make any progress with it.

I also saw from some websites that they are considering expanding the project to these nations. Maybe they didn't go on with the project after analyzing the business. I have some contacts who reside close to the Exon Mobil Qua Iboe Terminal in Nigeria and they have confirmed that such a project is non-existent. Any project that could help recycle waste or pollutants will be highly appreciated because it will reduce the negative impact, and create jobs and revenue sources.

The problem is the little challenges that may be felt in the aspect of mining using this new technology and the way to set up the infrastructure for the use, you have to agree with me that using a new process for the mining will take little more of efforts and time for evaluation before the conclusion for the overall release on the usage, so this may take more time than expected and there is more likely possible means that the channels and the technical ways to achieve this on a global range might not have been concluded yet, but its something that will reduce and ease the demand on energy consumption from the centralized government bodies.

ExxonMobil is a multi-billion-dollar business that can afford the cost of experimenting, buying the necessary equipment and hiring the best manpower to make the project successful. In the case of Nigerian government policy might have affected the project because the government in power in 2022 was unfriendly with Bitcoin. Or maybe they are still in the development process.

[Rruchi man]

From Fillippone's post

Exxon started with a few tests in North Dakota in partnership with Crusoe Energy (Winklevii have invested in it), but they are now expanding to Alaska, Nigeria, Argentina, Guyabbaa and Germany.

There is still gas flaring ongoing in Nigeria even though it was something that we heard will stop since like 2020, so maybe ExxonMobil were not able to make any progress with it.

I also saw from some websites that they are considering expanding the project to these nations. Maybe they didn't go on with the project after analyzing the business. I have some contacts who reside close to the Exon Mobil Qua Iboe Terminal in Nigeria and they have confirmed that such a project is non-existent. Any project that could help recycle waste or pollutants will be highly appreciated because it will reduce the negative impact, and create jobs and revenue sources.

In communities that are close to these flaring, the health implications are terrible for people leaving there. If there is proper concern about the health of the people there, and also concern for global warming, these projects aimed at stopping flaring will be hastened.

ExxonMobil is a multi-billion-dollar business that can afford the cost of experimenting, buying the necessary equipment and hiring the best manpower to make the project successful. In the case of Nigerian government policy might have affected the project because the government in power in 2022 was unfriendly with Bitcoin. Or maybe they are still in the development process.

This is a quote from something recent, but I am not sure that ExxonMobil are behind it.

The Nigerian Upstream Petroleum Regulatory Commission has said plans are underway to end gas flaring in 2030.

source

[adaseb]

I am just wondering why they are doing this? Is it for PR?

Reason being is that this is a extremely rich company and they don’t really need any of the bitcoin profits. I am guessing perhaps they did this project to see how it would go. If it lead to stable mining conditions and decent profits, they could say that those profits would all be donated to environmental charities.

Since there was no report since then, I am assuming it was very difficult to get a stable miner to function and they called it quits.

[mindrust]

I am just wondering why they are doing this? Is it for PR?

Reason being is that this is a extremely rich company and they don’t really need any of the bitcoin profits.

It is clearly stated in the OP. If they don’t do anything with the excessive oil/gas it will go to a waste. They will be burning that unwanted oil anyway so why not make profits from it instead? It is free money. Being rich already doesn’t change a thing. Even Warren Buffett would pick a $100 from the ground. Elon is rich too and yet he is still dealing with crypto. I find your logic flawed. If you can’t expand, you’ll shrink.

[Kemarit]

I am just wondering why they are doing this? Is it for PR?

If it's for PR stunt then we should have heard news from them from time to time. But they started like 2 years ago and we haven't heard if it is a success or not or if they continue to. I assume they are as they have excessive supply and they don't want to waste it.

Reason being is that this is a extremely rich company and they don’t really need any of the bitcoin profits. I am guessing perhaps they did this project to see how it would go. If it lead to stable mining conditions and decent profits, they could say that those profits would all be donated to environmental charities.

Since there was no report since then, I am assuming it was very difficult to get a stable miner to function and they called it quits.

What do you mean? even rich people will go for free money whichever way they can. And so it's shooting two birds with one stone. They will look good from the environmentalist perspective as they recycle everything and then getting profits at the side, regardless how big or small it is.

[Bananington]

I am just wondering why they are doing this? Is it for PR?

If it's for PR stunt then we should have heard news from them from time to time. But they started like 2 years ago and we haven't heard if it is a success or not or if they continue to. I assume they are as they have excessive supply and they don't want to waste it.

Reason being is that this is a extremely rich company and they don’t really need any of the bitcoin profits. I am guessing perhaps they did this project to see how it would go. If it lead to stable mining conditions and decent profits, they could say that those profits would all be donated to environmental charities.

Since there was no report since then, I am assuming it was very difficult to get a stable miner to function and they called it quits.

What do you mean? even rich people will go for free money whichever way they can. And so it's shooting two birds with one stone. They will look good from the environmentalist perspective as they recycle everything and then getting profits at the side, regardless how big or small it is.

Whichever way we intend to capitalize on what Exxon Mobil is doing is not going to affect the project already set in play.

I have had a former colleague who worked for the EGTL projects which is Escravos Gas To Liquid projects across some African countries and it involved the process of converting the flared gas to liquid which is reused.
 It was more to save the environment and the ozone layer and if ExxonMobil is considering using this wasted flared gas to power mining plants and save cost, it would obviously be serving to provide employment, save the ozone layer, as well as be profit for the company and to the miners who will pay less as compared to electricity bills.

[CODE200]

What the hell? We're having so much fuel that it's wasted because we're lacking the pipelines? How could we come to this point that energy is expensive to buy when you're a consumer but then you've got problems like this at the top of production? That's an unacceptable to happen, I don't even think that we have to disregard this and be happy that it's used for bitcoin mining, this is a bad thing, we pay for gas at a premium and we get this kind of problem, now on the topic of using that excess to fuel the power needed for mining bitcoins, I think that it's a good idea to use it there but then I'm thinking that those that have been opposing bitcoin as a source of pollution because of where they get their power to mine will see this as another reason to hate on bitcoin and will definitely the dumb masses will again voice out their opinion about bitcoin being bad for the environment.