• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Warm Winter Drags U.S. Natural Gas Prices to Three-Decade Low

Warm Winter Drags U.S. Natural Gas Prices to Three-Decade Low

Warmer-than-average winter temperatures in the…

Gazprom’s Oil Unit Plunges Into Crypto Mining

Gazprom Neft, the oil unit of Russian gas giant Gazprom, has launched a cryptocurrency mining operation at one of its oil sites in Siberia, CoinDesk reported on Wednesday.

Gazprom Neft, the third-largest oil producer in Russia, is using associated gas from an oilfield in the Khanty-Mansiysk region of northwestern Siberia to generate electricity it sells to the crypto mining operations, CoinDesk reports.

Cryptocurrency mining requires a lot of electricity, and Siberia is thought to be an ideal place for crypto mining, the BBC said in a news story in 2018.

Gazprom Neft doesn’t plan to mine for cryptocurrencies itself, a spokesperson for the company told CoinDesk. However, the Russian oil producer is open to sharing its energy resources with crypto miners.

Gazprom Neft believes that crypto miners could be one of the customers of the electricity produced from associated gas.

Power from associated gas can power data centers and mining farms, Alexander Kalmykov, Head of the Blockchain Technology Center at Gazprom Neft, told Russian outlet Forklog.

This will increase the use of the raw materials, especially in faraway regions in Siberia and the Arctic, where transporting associated gas out of the oilfields is not profitable, Kalmykov told Forklog. 

Gazprom Neft has piloted this year a small crypto mining operation with Russian computer hardware manufacturer Vekus at one of its oilfields in Siberia. Gazprom Neft used the associated gas to produce electricity and sell it, at prices below the price from the grid, to Vekus.

The alliance in Siberia is not unique in the oil industry.

In North Dakota, Crusoe Energy Systems, recognized as an innovator by the North Dakota Petroleum Foundation, has developed technology and equipment to capture natural gas at the wellhead and convert it into electricity for energy-intensive computing, including Bitcoin mining.

ADVERTISEMENT

Meanwhile, the price of Bitcoin hit an all-time high at $28,400 early on Wednesday, with analysts saying the $30,000-mark could be hit before the New Year.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News