The past few months have seen headlines that reinforce the creativity and innovation within the energy industry—all in the name of Environmental, Social, and Governance (ESG).
First, there’s Bitcoin. While it isn’t a new phenomenon, Bitcoin’s popularity is driven by a larger acceptance of the cryptocurrency and that more companies are accepting it as a form of alternative currency in transactions. Bitcoin also has been driven by the outspoken voice of billionaire Elon Musk. However, mining Bitcoin requires using a lot of energy. The size and scale of Bitcoin mining operations have grown over the years. It’s estimated that mining one Bitcoin transaction takes 1,544 kWh to complete. That’s equivalent to 53 days of average power for a U.S. household. Supermajors like ExxonMobil have even entered the cryptocurrency mining trend with the expansion of an initial pilot to use flare gas at oil drilling sites globally to power servers and supercomputers, according to media reports.
READ MORE: Cryptocurrency In Texas: Why Bitcoin Mining Is Taking Off In The Lone Star State
Second, the upstream drilling of crude oil produces an excess byproduct—natural gas—which is often flared or vented due to a lack of pipeline infrastructure. According to the U.S. Energy Information Administration (EIA), the volume of natural gas vented and flared reached 1.48 Bcf/day in 2019, with 85% of those emissions coming from the Bakken play in North Dakota and the Permian Basin in West Texas. Flare gas is harmful to the environment since it’s released into the atmosphere. For years, the energy industry has focused on flaring this byproduct since it wasn’t economically feasible to store and ship it to a destination.
The new and interesting juxtaposition is the intersection of using flare gas as a fuel to drive Bitcoin mining operations. Economics typically serves as a stimulus to jumpstart innovation. The ingenuity of the industry allows harmful waste (flare gas) to be…
