Utilizing stranded gas to power bitcoin mining rigs at oil and gas wells is a promising business opportunity. It is profitable for all participating parties and beneficial for the environment. Not without challenges, this young industry is growing in energy-rich North America. Several companies are working to expand the niche and U.S.-based EZ Blockchain shared details about their progress.
When Markets Are Far
Oil production has certain byproducts, one of which is natural gas. When drilling sites are located in remote places, oil companies are often forced to flare or even vent the fuel into the atmosphere as transporting it to markets is rarely a cost-effective option. Selling it close to the well or using it onsite, on the other hand, can be a solution, provided there are consumers nearby.
EZ Blockchain is a Chicago-based company designing and building datacenters that can mine cryptocurrencies based on proof-of-work blockchains. It manufactures, deploys and operates mobile units at oil and gas extracting facilities, which run on what would otherwise be totally wasted energy to mint digital coins.
The company promotes its products and services in a couple of regions in the U.S. where oil and gas producers operate and significant quantities of excess gas are being released every day. “Appalachian Basin is interesting to work because we partner with gas producers. And small gas producers are struggling with current gas prices on the market and they are forced to close their wells,” EZ Blockchain founder Sergii Gerasymovych told news.Bitcoin.com. He further elaborated:
With bitcoin mining, however, they can actually stop selling gas to the pipe but use it for mining and eventually the price per MCF can be as high as $10, which is 10 times more than they sell it now.
Educating an Old Industry
It sounds like a no-brainer for oil producers but…