ConocoPhillips To Sell Natural Gas To Third-Party Bitcoin Miner
ConocoPhillips, the world’s largest independent exploration and production company, has agreed to sell natural gas that would have been otherwise been flared to a third-party Bitcoin miner located in the second-largest major shale play in the Bakken, North Dakota
By Andrew Senior
February 17th, 2020
Gas flaring is the practice of burning off natural gas associated with oil extraction. Flaring has been in practice from the inception of the oil industry, a history stretching back over 160 years ago and takes place due to a range of issues, from market and economic constraints, to a lack of appropriate regulation and political will to find other answers. Flaring amounts to a massive waste of valuable natural resource that should either be used for productive purposes, such as generating power, or conserved. For example, the amount of gas that is currently flared each year, roughly 142 billion cubic meters, could power the whole of sub-Saharan Africa.
ConocoPhillips released a statement saying,
“ConocoPhillips has one bitcoin pilot project currently operating in the Bakken, where gas that would otherwise have been flared is routed to a bitcoin processor owned and managed by a third party.”
ConocoPhillips has pledged to join the World Bank Zero Routine Flaring by 2030 initiative and has made it a priority to reduce methane emissions drastically in 2020 with the ambitious goal of reducing all operational greenhouse gas emissions to net-zero by 2050. ConocoPhillips has a company-wide target to beat the deadline of 2030 for zero routine flaring, with the aim to get there by 2025.
Mining crypto requires energy, and recently, several U.S. lawmakers reached out to six major cryptocurrency mining companies, requesting details about their high energy usage, any possible impact on the environment, and what role their operations play in driving up power bills for U.S. consumers. Riot Blockchain, Marathon Digital Holdings, Stronghold Digital Mining, Bitdeer, Bitfury Group, and Bit Digital were all included in the group of companies under the scrutiny of U.S. lawmakers.
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