Podcaster Marty Bent embraces a solution for Oil and Gas Producing companies and Bitcoin Mining. In an April 15 blog post, Bent revealed that since last year he had been mining Bitcoin with the Great American Mining (GAM) company, using excess gas formed as a byproduct of mining oil to power the rigs.
Bitcoin mining is THE flare mitigation subsidy for O&G producers. https://t.co/sB8B3P9BaE — GreatAmericanMining (@GAMdotAI) April 15, 2020
He states that Bitcoin miners are always looking to find cheap and abundant energy sources. O&G companies, particularly those in jurisdictions that force producers to halt production when they reach certain emissions levels, are looking to be as efficient and profitable as possible.
Currently, the best alternative that may bring additional revenue for these particular energy producers is to attempt to turn the wasted gas into a natural gas liquid that can be transported via truck and sold to the market.
Bent says that Bitcoin fixes all of this by providing a digital pipeline.
Bent said there was no need to use warehouses or to build any kind of fancy steel structures to mine Bitcoin when stacked ordinary shipping containers would do the same thing:
“You’re seeing a trend now, where even centralized locations are adopting. Instead of building like a large warehouse and doing all the infrastructure, they’re actually using the container model as the way to build on site…. a year or so ago, that wasn’t the case at all. And now you’re seeing very, very large places, you know, stack 40, 50, 60 containers… it’s just cheaper to do it that way.”
Deploying a bitcoin mining operation is a much larger net benefit which are becoming unprofitable. Brent says GAM uses gas normally disposed of as a waste byproduct or sold off sometimes at a loss into a crypto mining energy source:
“If designed correctly, containers filled with bitcoin miners have far superior uptime and are 5x more profitable (on average) than sending the gas to a pipeline to sell. The container that we currently have up and running has experienced +95% uptime.
Bent believes that Bitcoin needs to be further distributed geographically from a mining perspective and O&G companies need to be less wasteful and more profitable. This means it can potentially help to invest in or campaign for the creation of a chip fabrication on the North American soil. This further aides in the geographical distribution of Bitcoin and reducing overall risk