Recently we set up a local gas well with our Hash Generator bitcoin mining datacenters. The goal for this project was to build a very modular and low cost bitcoin mine on a stranded upstream oil and gas well.
Shown above a separator skid is connected to a gas well (off camera) and three Hash Generators. A trunk line extends further where more Hash Generators, which are currently being fabricated, will soon to be tied in. Behind the facility a row of hay bales silences noise for a nearby resident.
This gas well had been sitting in a farmers field for about 10 years or so, unable to produce due to low commodity prices. Bitcoin mining is an optional revenue source alongside selling gas to a pipeline. Since bitcoin mines are portable, this solution can be deployed on almost every oil and gas facility in the world.
Here is a video walkthrough of how we are setting this site up with Hash Generators:https://www.youtube.com/embed/VNrrpbtHtpg?autoplay=0&mute=0&controls=1&start=100&origin=https%3A%2F%2Fwww.upstreamdata.ca&playsinline=1&showinfo=0&rel=0&iv_load_policy=3&modestbranding=1&enablejsapi=1&widgetid=3
Our Hash Generator is not only a great introductory product for oil and gas producers to try out bitcoin mining, but it is the perfect solution to revitalize stranded and remote gas wells which have low pressure and volume.
Currently bitcoin mining is very profitable, earning over $12 USD/mcf. Though keep in mind revenue is highly volatile and we are recently coming off a summer of low pricing.
Benefits of mining bitcoin on stranded gas wells:
1) More revenue: Bitcoin mining offers an alternative revenue stream which a producer can use as their primary revenue stream or as a hedge against uncertain markets. Revenue has reached as high as 20x that of alternative markets.
2) Revitalize mature properties: Small engines only need ~5 ounces of inlet pressure and only a few thousand cubic feet of fuel gas per day (a Hash Generator consumes ~15 mcfd, for example). Even mature gas fields can benefit.
3) Operational efficiency: The gas well is produced to 100% of its potential with zero wasted fuel. Compare that to compression and pipelines which take significant % of available energy to move the gas to the market.
4) Energy custodian: There is literally no energy wasted mining bitcoin, whereas all energy is wasted in a combustor or flare stack. The money earned by mining also pays for the gas well’s future reclamation costs.
5) Full reserve: Every drop of gas produced is booked, monetized and contributing positively to the economy.
6) Landowners happy: The landowner earns rental fees and in some cases mineral royalties, they are enriched and can better maintain their land.
7) Local county happy: The local county is benefitted from more prosperous landowners and the resultant economic lubrication. As a result they are in a position to offer higher quality services to the community.
8) Government happy: Government revenue increases is better able to maintain critical infrastructure.
If you like what you see and have access to low value natural gas then you too can be as cool as us! The Hash Generator is a low capital cost entry into bitcoin mining and we designed it to be highly accessible to new entrants in this market.