At a recent meeting of 200 oil and gas executives and bitcoin miners in Texas, flared, vented and stuck gas assets were talked about as a way forward for bitcoin miners to deal with their ever-increasing electricity and energy requirements.
One Texas native described in a report by CNBC on the topic called Hayden Griffin Haby 3, formerly a surface landman, has been exclusively mining bitcoins for the last nine months. Haby co-founded a company that capabilities bitcoin mining setups along with flared, vented, and trapped natural gas assets.
An interesting confluence of events occurred, with the Chinese government banning crypto mining rigs this past spring. This could potentially result in an influx of Chinese crypto-miners into Houston, to make use of the novel energy useful resource provided.
Considering that bitcoin miners care about finding cheap energy, the deregulated power grid, coupled with inexpensive power sources in Texas, provides them a perfect fit.
A supporter of bitcoin, Parker Lewis, who is an Executive on Unchained Capital, a bitcoin financial services firm, was a important figure in linking the power generation capability of Texas along with bitcoin miners. He envisions Texas as becoming the bitcoin capital of the world and it has been traveling across Tx to spread awareness about bitcoin.
Methane combustion basic to mining energy generation
In the past, when oil and gas businesses hit a natural gas formation while drilling for essential oil, a pipeline was necessary for delivering the gas. If a pipeline was very close to the drilling site, the gasoline could be sold on the same day. If the drilling site is 20 miles away from the particular nearest pipeline, then it’s not so easy to sell the found out gas. Something else must be done.
A single option is to vent the gas into the atmosphere, that has detrimental effects from a good emissions perspective. Another option is to “flare” it, which involves externally igniting the gas. Flares release CO2 and H2O in place of CH4 methane, and this process will be 75% to 90% effective.
The other option is on-site feeding of methane through an engine or generator, that allows 100% of methane to become combusted. This option is the most economically feasible.
Bitcoin miners get what they want in either case, that is cheap energy.
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