Exxon Mobil Ready to Expand its Crypto Mining Pilot Program
Exxon Mobil, the oil giant extends its tentacles towards crypto mining. Usually, excess natural gas is flared. Exxon Mobil seeks to change the narratives by channeling this natural gas to power crypto mining operations.
In January 2021, Exxon Mobil introduced its first crypto mining project in North Dakota for testing. The objective 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, the energy is being given a better application.
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, the pilot project saw massive expansion 6 months later. The report further shows that up to 18 million cubic feet of gas per month is used in the mining program. By implication, crypto is proving helpful in lessening the amount of gas flared.
North Dakota, Colorado and Wyoming have become the first places to use crypto mining to slash methane emissions. Following the success of the North Dakota gas-to-bitcoin experiment, Exxon Mobil plans to execute same in its other terminals.
These are the four sites the company is considering for similar bitcoin mining pilots – Alaska, the Qua Iboe Terminal in Nigeria, Argentina’s Vaca Muerta shale field, Guyana and Germany.
We 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
Exxon Mobil to run Bitcoin Mining Operations in Nigeria
Regardless of the crypto ban in Nigeria, adoption only keeps increasing. Interestingly, Nigeria’s Qua Iboe Terminal is one of the locations Exxon plans to carry out its crypto mining pilot operation.
Similarly, the operation will involve the use of excess gas to power generators used in running bitcoin mining servers.
Furthermore, Qua Iboe Terminal, a oil production and handling station is 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.
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.