By Sharon Kelly, Desmog
In a pilot project last year, ExxonMobil used up to 18 million cubic feet of gas per month to mine bitcoin in North Dakota.
Flaring — or the burning of stranded natural gas directly at an oil well — is one of the drilling industry’s most notorious problems, often condemned as a pointlessly polluting waste of billions of dollars and trillions of cubic feet of natural gas.
In early March, oil giant ExxonMobil signed up to meet the World Bank’s “zero routine flaring by 2030” goal (a plan that — when you look just a bit closer — doesn’t entirely eliminate flaring but instead reduces “absolute flaring and methane emissions” by 60 to 70 percent.)
How does ExxonMobil plan to reach that goal? In part, it turns out, by burning stranded natural gas directly at its oil wells — not in towering flares, but down in mobile cryptocurrency mines.
Roughly speaking, crypto miners compete with each other to solve complex puzzles. Those puzzles, designed to require enormous computing power, can be used to help make a given coin more secure. Successful miners are rewarded for their efforts with newly generated coins.
Using the energy-intensive process of crypto mining to fight pollution is the latest in a wave of claimed climate “solutions” whose environmental benefits seem to only appear if you squint at them from very specific angles — like “low carbon” oil, measured not by the oil’s actual carbon content but by how much more carbon was spent to obtain it.
Critics point out that replacing flaring with mining crypto could become a way for fossil fuel producers to spin money directly from energy, polluting the climate without heating people’s homes or transporting people from place to place in the process. “In terms of productive value, I would say there is none,” Jacob Silverman, a staff writer at the New Republic, said in a recent interview. “The main value of cryptocurrency is as a tool for speculation. People are trying to get rich.”
Categories: Economics/Class Relations, Environment
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