Data & Analytics

Exxon Weighs Taking Gas-to-Bitcoin Pilot to Four Countries

The oil giant launched its Bakken crypto pilot in January 2021 and now is considering expanding it to Nigeria, Argentina, Guyana, and Germany, according to people familiar with the matter.

Source: Bloomberg

Exxon Mobil Corp. is running a pilot program using excess natural gas that would otherwise be burned off from North Dakota oil wells to power cryptocurrency-mining operations and is considering doing the same at other sites around the globe, according to people familiar with the matter.

The oil giant has an agreement with Crusoe Energy Systems to take gas from an oil well pad in the Bakken shale basin to power mobile generators used to run Bitcoin mining servers on site, said the people, who asked to not be named because the information isn’t public. The pilot project, which launched in January 2021 and expanded in July, uses up 18 million cubic feet of gas per month that would have otherwise been burned off—or flared—because there aren’t enough pipelines.

Exxon, the largest US oil producer, is considering similar pilots in Alaska, the Qua Iboe Terminal in Nigeria, Argentina’s Vaca Muerta shale field, Guyana, and Germany, one of the people said.

“We continuously evaluate emerging technologies aimed at reducing flaring volumes across our operations,” and Exxon expects to meet the World Bank’s call to end routine flaring by 2030, spokeswoman Sarah Nordin said in an email. She declined to comment on “rumors and speculations regarding the pilot project.”

Crusoe declined to comment.

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