Mining

A Canadian oil firm is mining Bitcoin as a by-product

A Canadian oil mining firm has added an extra activity that will enable it to produce more oil by taking care of the residue gasses – mining Bitcoin as a by-product.

The two activities have extremely huge differences with the only meeting point being that both of them involve mining. But a Canadian oil mining company, Black Pearl Resources, has found a unique blend between the two mining activities on site.

Since oil mining activities involve emission of natural gas, the oil firm is using the gasses for mining Bitcoin as a by-product. This is done by directing the natural gasses to drive a Bitcoin mining rig. The process involves an electricity generator that is power by the natural gasses producing enough electricity which is used to mine Bitcoin as a by-product. The rig is of a considerable size since even with the low Bitcoin prices, it mines enough Bitcoin that is enough to cater for the firm’s operational costs.

The idea of mining Bitcoin as a by-product was presented by Stephen Barbour, a consultant who seeks ways of making oil companies rake in more profits by minimizing their operational costs. Barbour acknowledged that the idea was a result of studying available information on Bitcoin mining and the profitability margins presented.

The consultant told WSJ:

I knew about all the wasted energy that goes on. Reading about Bitcoin mining and how it could monetize energy through the internet. I just thought that was unbelievable.

Although Bitcoin is mined as a by-product, it benefits the company more than offsetting its operational costs; it helps the firm to produce more barrels of oil.

According to the firm’s production foreman, Ryan Wartman:

It was the best option for us… We’re using it to bring ourselves below the government-regulated amount that we can vent on location and keep producing oil. [We] are able to keep the oil well operating 24 hours per day by directing the natural gas output into the crypto mining rigs.

With such revelations, is mining Bitcoin as a by-product something other oil mining companies are likely to explore?

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Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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