Major Argentinian oil producer, Tecpetrol, is pioneering a novel method in the crypto world, planning to utilize its associated gas for mining cryptocurrencies. Traditionally based in Buenos Aires and running operations in several LATAM countries, Tecpetrol intends to employ associated gas from its oil fields around Vaca Muerta to generate electricity and power up miners’ rigs. Integrating energy production with digital expansion, this move stands testament to the convergence of conventional and modern industries.
However, the company remains somewhat vague about its roadmap, withholding information about specific cryptocurrencies they aim to mine. Yet it revealed a partnership with a company performing similar tasks, indicating that we might witness the application of this innovative gas-to-crypto model beyond Argentina’s borders.
The eagerly anticipated crypto mining operations are projected to kickstart towards the end of October or early November. As stated by Ricardo Markous, Tecpetrol’s Chief Executive Director, the gas from six wells would fuel the crypto miners. These wells produce almost 60,000 cubic meters of natural gas per day.
Typically, pumping oil releases associated natural gas, which is burned onsite unless quickly transported to local production facilities. In isolated areas where delivering the gas isn’t viable, oil companies tend to convert the gas into onsite electrical energy. This practice, while ecologically contentious, has sparked the interest of Russian oil firms, who’ve been experimenting with similar crypto mining projects since the early 2010s.
According to media sources, Tecpetrol’s oil fields are located in a remote area with limited infrastructure for gas treatment and evacuation. The gas is sold to Chevron. However, Tecpetrol’s extraction capacity caps the amount it can sell, a limit that the company claims to have reached.
Interestingly, Markous revealed that using gas for crypto mining would not only accelerate oil production but also have a positive impact on the environment as there’d be less need for flaring. The company plans to equip three energy-generating facilities at the site with mining rigs, thus blending both traditional and digital economies.
In the end, while we should welcome Tecpetrol’s effort to turn waste-to-wealth and its ambition to strengthen crypto’s foothold, skepticism towards this fusion arises from potential environmental implications, production limits, and the mystery surrounding the coins to be mined. As this unique synthesis of oil and crypto continues to unfold, we await further clarity on its feasibility and overall impact.
Source: Cryptonews
