ConocoPhillips Co (NYSE: COP) is supplying extra gas from one of its projects in the Bakken region to power a bitcoin miner in North Dakota, the oil and gas giant announced on Tuesday.
ConocoPhillips has one bitcoin pilot project currently operating in the Bakken, where gas that would otherwise have been flared is routed to a bitcoin processor owned and managed by a third party.
ConocoPhillips wants to hit zero routine flaring by 2025
The Texas-based company was a cofounder of the OOC Oil & Gas Blockchain Consortium in 2019. It is committed to further minimizing its methane emissions. By 2025, it wants to hit zero routine flaring.
ConocoPhillips shares are up more than 20% for the year. The stock trades at a PE multiple of 14.74.
Selling excess natural gas cuts carbon emissions from flaring
Flaring is standard practice for the oil industry where extra natural gas, on a lack of transportation infrastructure, is burned into the atmosphere.
Recently, bitcoin miners have started to set up next to hydrocarbon exploration companies to use the excess gas to power mining operations, all the while helping cut carbon emissions from flaring. According to JAI Energy’s Ryan Leachman:
Every oil and gas company in five to ten years will have some exposure to mining bitcoin.
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