Exxon Mobil is excited to diversify into the crypto industry by giving excess natural gas a better application through utilizing it in cryptocurrency mining operations.
ExxonMobil, one of the world’s largest publicly traded energy providers and chemical manufacturers, develops and applies next-generation technologies to help safely and responsibly meet the world’s growing needs for energy and high-quality chemical products.
Normally, due to cases of insufficient gas pipelines, excess natural gas is flared or burned off in the air. This has always been very detrimental to the environment including both humans and animals. Equally, there's been pressure on oil and gas producers from regulators and investors, to reduce the amount of gas they flare so as to help combat climate change.
According to news, the oil company seeks to change the narratives by channeling this excess natural gas to be used in powering crypto mining operations in five of its terminals.
What is Crypto Mining?
Crypto mining is the process of releasing digital currencies into a system by executing a given arrangement of scientific calculations. However, crypto mining comes with lots of challenges like requiring high energy. Nonetheless, it is a very profitable venture.
In January 2021, Exxon Mobil introduced its first crypto mining pilot project in North Dakota for testing. The aim of the pilot initiative is to power mobile generators utilized in running Bitcoin mining servers on-site, using natural gas from the Bakken shale basin, instead of flaring the excess gas.
In collaboration with Cruseo Energy System Inc., gas is successfully extracted from North Dakota oil wells to achieve the crypto mining goal. According to Bloomberg, ConocoPhillips said that it has been supplying gas from the Bakken shale in North Dakota to an undisclosed Bitcoin mining firm.
Interestingly, the North Dakota pilot project saw massive expansion 6 months later. News show that up to 18 million cubic feet of gas per month is used in the mining program. Therefore, North Dakota, Colorado and Wyoming have become the first places to use crypto mining to cut methane emissions.
Seeing the success of the North Dakota crypto mining operation, the oil giant plans to spread its tentacles to other of its terminals located in Alaska, the Qua Iboe Terminal in Nigeria, Argentina’s Vaca Muerta shale field, Guyana and Germany.
In continuously evaluate emerging technologies aimed at reducing flaring volumes across our operations,” and Exxon expects to meet the World Bank’s call to end routine flaring by 2030 – spokeswoman Sarah Nordin
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It is quite interesting to crypto presence increasing in Nigeria regardless of bans by the government. Exxon Mobil bringing crypto mining operations to Nigeria's Qua Iboe Terminal is very huge.
I believe this development will help enhance more crypto adoption in the country.
About Nigeria's Qua Iboe Terminal
Qua Iboe Terminal, a oil production, and handling station are located on the eastern side of the Qua Iboe river estuary (4° 20’N, 7° 59’E). More so, it contains nine crude oil storage tanks with a total capacity of 4.5 million bbls.