Canadian Oil Businesses Are Taking Part in Bitcoin Mining Activities Using Natural Gas Resources
Canadian oil companies seem to be mining Bitcoin (BTC) with the excess of gas they have. Mining activities have been expanding in many countries around the world and specifically in those with low temperatures and low electricity prices. Now, there is a Canadian firm that is generating Bitcoin as a byproduct of oil. But how is that possible?
Operators of an oil field in the northern country of Canada are also participating in the cryptocurrency ecosystem. These firms are using the wasted natural gas that results from mining petroleum so as to power Bitcoin mining operations.
There are very large shipping containers that are located side-by-side with oil derricks and also other machinery related to the industry. With the natural gas that comes from the mining operation, an electricity generator powers a Bitcoin mining farm. With natural gas, the company can offset operational costs and employ a byproduct of oil mining that is not used for other things.
It is also worth mentioning that natural gas prices have plummeted in the last years. The supply is currently so high that it is difficult to use it in a profitable way. This is why Bitcoin mining activities are a good way to invest this gas that otherwise would be wasted.
According to Stephen Barbour, a consultant that is currently working with oil companies to lower their operational costs, he decided to implement this idea after reading about the profitability of mining Bitcoin. According to the Wall Street Journal, he said that he knew about the waster energy and how it is possible to monetize this energy using the internet.
At the same time Ryan Wartman, which works as a production foreman for Black Pearl Resources, commented to the Wall Street Journal, that they are able to reduce their gas output and achieve a level in line with the regulations imposed by the government.
About it, Mr. Wartman explained:
“It was the best option for us… We’re using it to bring ourselves below the government-regulated amount that we can vent on location and keep producing oil.”
He has also explained that they are able to keep the oil operating 24 hours per day directing the natural gas output into the mining rigs that mine virtual currencies.
Back in December 2018, Bitcoin reached its lowest point in more than a year when it fell down to $3,200. At that time, mining activities became very unprofitable with this price of Bitcoin. Miners were spending more on electricity than the rewards received per block. Once the network difficulty adjusted some miners entered the market once again.
However, only those miners with the lowest energy price are going to be the most profitable ones. Using gas that otherwise would be wasted, it is possible to reduce the energy price to mine Bitcoin and other digital assets. In the future, it might be possible for other companies to start implemednting similar systems linked to the crypto mining world.