ExxonMobil (XOM) is piloting the use of gas from its North Dakota oil wells that would otherwise be squandered to power bitcoin mining facilities, Bloomberg reported on March 24, citing individuals familiar with the subject.
Due to the lack of pipes, the extra natural gas would have been burnt off or flared.
To supply flared gas globally
The report said the oil corporation is also interested in supplying flared gas to bitcoin miners at other locations across the world.
An unnamed source told Bloomberg that ExxonMobil has signed a deal with Crusoe Energy Systems, which was one of the pioneers in using wasted natural gas to power Bitcoin mining operations. The agreement calls for the company to use gas from an oil well pad in the Bakken shale basin to power mobile generators that are used for bitcoin mining operations.
Another large oil firm, ConocoPhillips (COP), recently announced that it is conducting its own pilot project to transport surplus natural gas from one of its Bakken region facilities in North Dakota to generate essential electricity for a bitcoin (BTC) mining operation.
Flared gas reduction initiative
Sarah Nordin, spokeswoman for ExxonMobil, stated in an email to CoinDesk that the oil giant is constantly evaluating emerging technologies aimed at reducing flaring volumes across its operations, adding that ExxonMobil recently announced its aim to achieve World Bank Zero Routine Flaring by 2030 through its emissions reduction plans.
Crusoe Energy was recently acknowledged by the World Bank’s Worldwide Gas Flaring Reduction Initiative for their “innovative” approach to global flaring. Excess natural gas is flared into the atmosphere as part of oil drilling operations; this technique has become normal industry practice due to a lack of transportation infrastructure.
Nordin and Crusoe Energy both declined to comment on Bloomberg’s report concerning “rumors and suspicions” about ExxonMobil’s pilot project.
ExxonMobil’s stock price remained unchanged on Thursday.