Several oil producers and Bitcoin miners have been holding weekly meetings in the US state of Texas. Among their plans is to capture most of the hash rate that China has released since the country imposed a ban on cryptocurrency mining, which led to the closure of large farms.
A car depot in the Texas city of Houston has become a meeting place for Bitcoin enthusiasts, miners and oil and gas executives to explore growth opportunities for the digital mining industry.
Texas has great potential to offer clean and inexpensive energy required to mine cryptocurrencies. That’s because the southern U.S. state is rife with oil wells that spew out excess natural gas, a fossil fuel that is being wasted today.
Instead of wasting the gas, Bitcoin mining can take advantage of it, considering that natural gas can be used to power mining operations that are installed in the vicinity of each well. In fact, plans are already pointing in that direction, as CNBC points out
. An ambitious plan has united fossil fuel executives and bitcoin miners who are also convincing politicians of the benefits of digital mining. Source: insideclimatenews.
This deployment will benefit both miners and producers, including the environment, as using natural gas from drilling sites to mine bitcoin (BTC) reduces the carbon footprint
of the oil industry.
Texas may become the bitcoin capital of the world
Bitcoiner Parker Lewis is emerging as one of the de facto ambassadors promoting bitcoin adoption in Texas. Everyone knows him and bitcoiners refer to him as the future mayor of Texas capital Austin, as the U.S. media outlet notes.
Lewis has no doubt that if the area starts hosting good meetings to talk about the future of the pioneering cryptocurrency, “Texas can become the Bitcoin capital of the world,” as he noted.
His efforts are thriving because the meeting held in late August had more than 200 attendees from across the state of Texas, as well as California, Colorado, Louisiana, Pennsylvania, New York, Australia and the United Kingdom, the release added.
Using natural gas as a source of energy
use of energy to mine bitcoin is a smart and financially sound move, according to Adam Ortolf, who heads U.S. business development for Upstream Data, a manufacturer of natural gas-powered bitcoin mining equipment.
Fossil fuel executives are finding out. Source: Pexels.
Ortolf’s point, is attested to by Hayden Griffin Haby III who told CNBC about his experience merging these two worlds, Bitcoin mining and natural gas production. “I couldn’t take my eyes off of this when I observed that there was so much money to be made from gas thanks to a Bitcoin miner who harnesses gas that is usually released into the atmosphere to burn,” he said.
One of the Texas oil man’s main goals is to catch the attention of numerous Bitcoin miners who still want to relocate their businesses after being kicked out of China
However, many of these meetings are still clandestine and not open to the public. Some deals are protected by non-disclosure agreements, while others don’t want to talk about their relationship because it could give them an advantage to their competitors in the field.
Still, Texas already has the attention of industry bigwigs like Marathon Digital Holdings. According to what CryptoNews reported
, this company will build a new farm in the state that will house, approximately, 73,000 specialized ASIC equipment, although so far it is unknown whether it estimates to use gas for the extraction of cryptocurrency.
What is known is that the data center would begin construction in October 2021 and would begin operations in March next year.
On the other hand, last May cryptocurrency mining companies in the United States formed the Bitcoin Minning Council (BMC), along with MicroStrategy CEO Michael Saylor and Tesla CEO Elon Musk.
In their efforts to change the narrative about the use of energy to mine Bitcoin, BMC has collected data
. These estimate that the share of renewables in the global Bitcoin mining industry was around 56% by the end of Q2 2021, making it one of the “greenest” industries in the world. Data collected by Bitcoin Minning Council points to Bitcoin mining being one of the “greenest” in the world. Source: Bitcoin Minning Council.
Digital Methane Gas Mining: A Good Thing for the Environment
Billions of gallons of natural gas are flared in the U.S. each year, wasting the fossil fuel and emitting greenhouse gases without generating power.
In Texas alone, state regulators have allowed companies to burn more than a million cubic feet of gas every day since 2019. Combined, that would be enough natural gas to meet the annual gas needs of 15 million homes, according to a recently released report.
Fossil fuel companies choose to burn natural gas rather than capture and sell it for a variety of reasons. The most relevant is that building the necessary infrastructure is not economically feasible for relatively small reserves. Therefore, these reserves are usually simply flared without generating anything from them.
When natural gas is burned, methane is converted into carbon dioxide which is released into the atmosphere. But flares often don’t burn completely or don’t ignite, causing methane to vent directly into the air, an even more potent contribution to climate change, something bitcoin mining can address.