Argentinian Oil Company Tecpetrol To Power Cryptocurrency Mining with Excess Gas

Kasturi Chakraborty
New Update

Tecpetrol, a major Argentinian oil company, has announced fresh plans to harness associated gas from their oil wells to power cryptocurrency mining operations. This unique strategy targets tackling the age-old challenge of effectively managing the flaring or venting of natural gas at remote oil fields. Tecpetrol proposes to convert this excess gas into electricity on-site, reducing environmental impact and potentially accelerating oil production.


Minimizing Waste and Tapping into the Crypto Market

This innovative approach not only aims to minimize waste but also provides an opportunity for the company to tap into the growing cryptocurrency market. Tecpetrol has not yet disclosed the specific coins it plans to mine. However, they have partnered with a company that performs similar functions for US-based firms, indicating their serious intent to break into the crypto industry.

The company's crypto mining operations are scheduled to kick off between the end of October and the beginning of November. The mining rigs will utilize gas from six of the field's wells, which produce an estimated daily volume of 60,000 cubic meters of natural gas.


Addressing the Issue of Gas Flaring

Extracting oil from most fields results in the release of associated natural gas. Typically, this gas is either flared or vented – burned on-site – unless it can be quickly transported to local production facilities. However, in cases where oil fields are situated in remote areas, this option is not feasible, leading to the wastage of a valuable resource.

Tecpetrol’s strategy seeks to address this environmental and economic issue by converting associated gas into on-site electrical energy. This initiative comes at a time when other oil companies, including YPF Luz in Argentina and ExxonMobil and Cursoe Energy System in North Dakota, have initiated similar projects, harnessing gas flare energy for Bitcoin mining.


Speeding Up Oil Production and Reducing Environmental Impact

According to Ricardo Markous, the company's Chief Executive Director, using the gas will also help speed up oil production at the site. The firm plans to use three generating facilities at the site, all fitted with crypto mining rigs. This initiative is expected to minimize environmental degradation through gas emission prevention and generate extra revenue. It's a win-win situation for both the environment and the company's bottom line.

Setting the Pace for Sustainable Cryptocurrency Mining

This new approach displays how companies are discovering innovative ways to use natural resources sustainably. In this case, Tecpetrol intends to convert a less usable gas into a source of income, thereby avoiding the wastage of this precious resource. A fundamental aspect of this initiative is its positive impact on the environment. Cryptocurrency mining is often associated with high energy consumption and, therefore, a negative impact on the environment. However, by utilizing natural gas to generate energy, Tecpetrol contributes to the reduction of greenhouse gas emissions. This strategy shows that it's possible to balance technological innovation with environmental responsibility.