Tecpetrol Plans to Mine Crypto Using Associated Gas
Tecpetrol, a major Argentinian oil producer, has announced its intention to mine cryptocurrency by utilizing associated gas. The company, based in Buenos Aires, operates in several Latin American countries, including Venezuela, Bolivia, Ecuador, Mexico, Peru, and Colombia. According to Rio Negro, Tecpetrol plans to generate electricity from associated gas in its oil fields near Vaca Muerta and use it to power mining rigs. While the specific coins to be mined have not been disclosed, the company has partnered with a US-based firm that performs similar functions for other companies.
Using Gas from Oil Fields
The mining operations are expected to commence between the end of October and the beginning of November. Ricardo Markous, the Chief Executive Director of Tecpetrol, explained that miners would utilize gas from six wells in the fields that produce approximately 60,000 cubic meters of natural gas daily. Normally, associated gas is flared or vented onsite if it cannot be quickly transported to local production facilities. However, when oil fields are situated in remote areas like this one, converting associated gas into on-site electrical energy becomes a viable alternative.
Similar Projects and Benefits
Russian oil companies have been exploring pilot crypto mining projects since the early 2010s. Tecpetrol currently sells part of the extracted gas to Chevron but has reached the limit of what it can sell. By using the gas for mining purposes instead of flaring it, Tecpetrol will not only improve the environment but also enhance oil production at the site. The company plans to establish three generating facilities at the location, all equipped with crypto mining rigs.
Hot Take: Turning Waste into Profit
Tecpetrol’s decision to mine crypto using associated gas demonstrates its commitment to finding innovative solutions to minimize waste and maximize profitability. By harnessing the power of this gas resource, the company can generate electricity for mining operations while reducing harmful emissions. This approach not only benefits Tecpetrol financially but also contributes to a more sustainable energy industry. It will be interesting to see how other oil producers around the world follow suit and explore similar opportunities to leverage their resources for crypto mining.
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