For centuries, oil exploitation has been a traditional non-digital activity that has driven the global economy, and bitcoin mining is a unique and modern subversion of this activity.
Although mining and bitcoin mining have little resemblance, the unique system used in an oil field in Canada creates a seemingly unlikely partnership that makes Bitcoin an oil by-product.
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Black Pearl Resources, a large oilfield operator in Canada, hopes to benefit from the cryptocurrency phenomenon, using waste natural gas from oil extraction to power bitcoin mining.
In the oil field, large containers are placed side by side with oil derricks and other petroleum-related industrial machinery, forming a symbiotic relationship. The natural gas produced by the mining operations directly enters the generator, providing power for a considerable bitcoin mining activity.
Many oil fields burn directly off the waste gas, which, by using natural gas, can offset the operating costs by leveraging the oil-mining by-products that are often wasted.
Natural gas prices have fallen sharply in the past few years, and the market supply is also very abundant, so there is no way to make profits while processing natural gas, but using natural gas to generate cryptocurrency may become its next important application trend.
Stephen Barbour, a consultant who works with oil companies to help reduce operating costs, is the mastermind of this ingenious use of natural gas. He said that he had the idea after reading an article about the potential profitability of Bitcoin mining.
I know that energy waste is still going on… When I read bitcoin mining and how to monetize energy through the Internet, I think this is incredible.
Ryan Wartman, head of production at Black Pearl Resources, said that with natural gas-driven mines, they can also reduce natural gas emissions by meeting government-regulated standards while allowing them to extract more oil.
This is the best option for us… We can control natural gas emissions in this way while continuing to produce oil.
Wartman explained that the exported natural gas is exported to the mining machine and their wells can be operated 24 hours a day.
Since the current price of Bitcoin is only slightly higher than the low point of 2018, the profitability of cryptocurrency mining has fallen sharply in the past year. The key to the profitability of mining activities is cheap energy, which can be obtained by using energy that was originally abandoned. Lower cost.
In addition, by reducing the natural gas production in the field, they can allow the well to run longer, which will benefit higher oil production.
This seemingly impossible combination between oil wells and bitcoin mining proved to be profitable, and other fields are likely to start investing in similar systems.