Argentinian oil company to start mining crypto with gas power leftovers

Argentinian oil company to start mining crypto with gas power leftovers

A Buenos Aires-headquartered oil company, Tecpetrol, has decided to convert excessive gas into energy for cryptocurrency mining. 

As reported by local media on Sept. 24, Tecpetrol will launch its first gas-powered crypto mining facility in the Los Toldos 2 Este region, located north of Vaca Muerta in the Argentine Patagonia. The company claims its approach would allow it to advance its crude oil production project and optimize gas utilization, thereby reducing waste.

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The company is planning to drill at least 35,000 barrels of oil daily at the facility, but, given the absence of infrastructure to consume the gas, being released in the process, it decided to explore crypto mining as a strategic choice to consume it. As Ricardo Markous, the CEO of Tecpetrol, explained:

“Given our inability to release the gas into the environment, we have opted to implement cryptocurrency mining operations.”

Tecpetrol hopes to commence the crypto mining between late October and early November. The primary goals are to reduce environmental impact by avoiding gas emissions and to generate some additional profits. The company has already signed contracts and is collaborating with an unnamed firm that has experience implementing similar strategies in the United States.

A recent paper published by the Institute of Risk Management (IRM), states that Bitcoin mining can reduce global emissions by up to 8% by 2030 by converting the world’s wasted methane emissions into less harmful emissions. The report cited a theoretical case saying that using captured methane to power Bitcoin mining operations can reduce the amount of methane vented into the atmosphere.

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Additional reporting: Ray Jimenez Bravo, Mariuscar Goyo