Tecpetrol, a leading oil producer in Argentina, has recently unveiled its plans to engage in cryptocurrency mining using associated gas. The company, which focuses on oil and gas exploration in various Latin American countries, including Venezuela, Bolivia, Ecuador, Mexico, Peru, and Colombia, aims to generate electricity from the gas produced in its oil fields near Vaca Muerta. This electricity will then be used to power cryptocurrency mining rigs.
Tecpetrol has decided to tap into the potential of associated gas in an effort to enhance its operations and diversify its revenue streams. The company has partnered with a US-based firm that specializes in providing similar services to American companies. While Tecpetrol has not yet disclosed the specific cryptocurrencies it intends to mine, it has confirmed that its mining operations will commence between the end of October and the beginning of November.
The Chief Executive Director of Tecpetrol, Ricardo Markous, revealed that the gas used for mining will be sourced from six wells in the fields. These wells are estimated to produce approximately 60,000 cubic meters of natural gas on a daily basis. Normally, when oil is pumped from most fields, associated natural gas is released. Traditionally, this gas is either flared or burned onsite unless it can be quickly transported to local production facilities. However, in cases where oil fields are located in remote areas, this option is not feasible. Consequently, some extraction companies have sought to convert associated gas into on-site electrical energy.
Interestingly, this approach is not entirely new. Russian oil firms have been experimenting with similar crypto mining projects for almost a decade. The isolated location of the oil fields owned by Tecpetrol has posed significant challenges in terms of production treatment and evacuation facilities. Presently, the company sells part of the gas it extracts to Chevron. However, there are limitations to the amount it can sell, and these limits have already been reached. By utilizing the gas for cryptocurrency mining, Tecpetrol will not only address these limitations but also boost its oil production capabilities at the site.
To facilitate its mining operations, Tecpetrol plans to establish three generating facilities at the site. Each facility will be equipped with crypto mining rigs, ensuring efficient and cost-effective mining processes. By using associated gas for electricity generation, Tecpetrol will significantly reduce its reliance on external power sources and minimize its environmental footprint.
The decision by Tecpetrol to employ associated gas for cryptocurrency mining demonstrates the ever-growing influence of the crypto industry across different sectors. By capitalizing on a previously untapped resource, Tecpetrol aims to enhance its operations and generate additional revenue. This innovative approach not only allows the company to diversify its business model but also contribute to the sustainable use of natural resources. As the crypto mining industry continues to evolve, it is likely that more companies in various sectors will explore similar opportunities to harness the potential of cryptocurrencies.
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