ExxonMobil Running Pilot Project to Supply Flared Gas for Bitcoin Mining: Report

The oil giant is looking to make use of natural gas that would otherwise be wasted at sites around the world, according to Bloomberg.

AccessTimeIconMar 24, 2022 at 7:25 p.m. UTC
Updated May 11, 2023 at 7:15 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Oil giant ExxonMobil (XOM) is running a pilot project to use what would otherwise be wasted gas from its North Dakota oil wells to power bitcoin mining operations, Bloomberg reported Thursday, citing people familiar with the matter.

The excess natural gas would have otherwise been burned off, or flared, because of the lack of pipelines.

The oil company is also looking to supply flared gas to bitcoin miners at other sites around the globe, according to the report.

ExxonMobil has a deal with Crusoe Energy Systems, one of the pioneers of using wasted gas to power bitcoin mining operations, to take gas from an oil well pad in the Bakken shale basin to power mobile generators that are used for bitcoin mining operations, Bloomberg said, citing the unnamed source.

The news comes after another major oil company, ConocoPhillips (COP), said it's running its own pilot project to route excess natural gas from one of its Bakken region projects in North Dakota to supply necessary power for a bitcoin (BTC) mining operation.

“ExxonMobil continuously evaluates emerging technologies aimed at reducing flaring volumes across our operations,” ExxonMobil spokeswoman Sarah Nordin told CoinDesk in an email, adding that the company recently announced that its emissions reduction plans are expected to achieve World Bank Zero Routine Flaring by 2030.

Most recently, Crusoe Energy was recognized for its “innovative” solution to flaring globally by the World Bank’s Global Gas Flaring Reduction Initiative report. In the flaring process, excess natural gas is burned off into the atmosphere as part of oil drilling operations; it has become standard industry practice because of the lack of transportation infrastructure.

Nordin declined to comment on “rumors and speculations” about ExxonMobil’s pilot project, and Crusoe Energy also declined to comment on Bloomberg’s story.

Shares of ExxonMobil were flat on Thursday.

In 2019, ExxonMobil and ConocoPhillips were among the founding members of the OOC Oil & Gas Blockchain Consortium, a group of energy companies looking to establish “key blockchain standards, frameworks and capabilities” within the industry. Other members of the group include Chevron, Equinor (EQNR), Hess (HES), Pioneer Natural Resources (PXD) and Repsol.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.