Some oil field operators are letting companies use their excess natural gas to power Bitcoin mining, reducing greenhouse gas emissions by putting otherwise-wasted energy to use.
Oilman Magazine reported recently that portable Bitcoin mining systems from a Denver company, Crusoe Energy Systems, are operating at 20 oil fields around the U.S. They convert unused natural gas, a byproduct of oil extraction that is often not profitable enough to capture and sell, into electricity at the well to supply energy for the computing needs of Bitcoin miners. The process of creating new digital currency or Bitcoin “mining” is energy intensive, accounting for as much as 0.3% of global electricity use.
The gas would otherwise be "flared" (i.e., burned) or “vented” (i.e., emitted directly into the air), producing carbon dioxide in the former case and methane, a more potent greenhouse gas, in the latter.