Bringing responsibly produced natural gas to bitcoin mining
The world’s energy expectations are changing. Investors, regulators, governments and consumers want oil and gas to become more efficient, less wasteful and more respectful of the environment. This adds to the cost of extracting, refining and delivering natural resources.
One of the quickest wins for the industry would be finding a way of harnessing the stranded natural gas that accompanies oil deposits. The amounts of gas are too small to get to market cost effectively, so they tend to be forced back into the ground, flared or released into the atmosphere. This is a waste and has a considerable environmental impact.
It is estimated that around 150 billion cubic meters of natural gas is flared globally each year, costing the industry in the region of US$16 billion. While strict environmental regulations in Canada mean that the country is only responsible for 1% of this total, it is still a considerable amount of money that could be saved if we found a way to harness the waste. Canada is also estimated to have US$110 billion in stranded natural gas assets.
Meanwhile, there has been a lot of talk about the rise of the crypto sector, it’s ravenous appetite for electricity and the impact that could be having on the world’s environment.
So on the one hand we have an energy sector that is wasting potential electricity, and one the other there’s a growing crypto sector with a voracious appetite for electricity, and both are under pressure to improve their environmental credibility.
Creating a market for wasted gas
PermianChain has developed a solution. We place bitcoin mining servers on site at an oil and gas project and work with our operating partners to power them with the natural gas that was previously wasted. The bitcoin mining servers are placed in modular mobile mining units so they can be brought online as a project evolves and moved to another site when it comes to an end.
The PermianChain approach means that oil and gas firms can create revenue from a previously wasted resource and enjoy additional revenue from bitcoin mining on their own behalf.
As part of the process, we have created the Digital Energy Currency (DEC), a blockchain-based currency that helps crypto-miners and oil and gas firms manage low-cost sustainable energy efficiently.
PermianChain’s DEC is a tokenization model that allows bitcoin miners to manage their electricity consumption and prove that it is being produced in an environmentally considerate way. It also helps oil and gas firms manage a new source of revenue from crypto market activities without the need for significant additional back-office management.
On the 29th of June 2021, we participated in a Technology Information Session hosted by Petroleum Technology Alliance Canada (PTAC), to present the PermianChain platform and the DEC, explaining how it helps natural gas producers and well owners export their resources globally on a digital energy marketplace.
Watch the recorded webinar here: https://youtu.be/IkOVSihIm40
About PermianChain Technologies
PermianChain is a proprietary technology platform that brings together the crypto-mining and oil and gas sectors. Using a blockchain, PermianChain makes it possible to utilise stranded and wasted energy resources, unlocking liquidity and transforming the way that oil and gas projects are funded, produced, bought and sold. Our goal is to eliminate the high barriers to entry and create value in resource finance and sustainability for the exploration and production of proven natural reserves globally.