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Bitcoin miners help US oil producers cut flaring

  • Spanish Market: Crude oil, Emissions, Natural gas
  • 08/10/21

US oil producers are turning to an unexpected source to help solve the environmental problem of excess natural gas — cryptocurrency miners.

On remote well pads dotted across the Bakken shale play of North Dakota and Montana, shipping container-sized data centers packed with computers power energy-intensive operations of Bitcoin miners. Their computers, running around the clock to earn crypto tokens by authenticating digital transactions, are powered by natural gas-fired generators, running on gas from the oil wells that would otherwise be flared on site.

Mining for virtual currencies has attracted widespread criticism — from environmental groups to tech entrepreneur Elon Musk — because it uses vast quantities of energy, more than some nations use in a year. That has led crypto miners to try and cut down on their energy use, or at least find ways to shrink their carbon footprint.

In the Bakken, they are able to capitalize on an abundance of surplus natural gas — a common byproduct of oil production — that would otherwise be burned off given a lack of pipeline infrastructure to take it to market. The environmentally harmful practice of flaring has come under intense scrutiny from regulators, climate campaigners and investors, including fund manager Blackrock.

Companies tapping surplus gas to run their cypto-mining computer banks see a double benefit — reducing the negative impacts of gas flaring and cutting their carbon footprint.

Denver-based Crusoe Energy operates 44 data centers in Montana, North Dakota, Wyoming and Colorado, and was due to deploy another 16 units by the end of September. Plans are afoot to start an initial project in the top oil producing Permian basin of Texas and New Mexico later this year before ramping up there in 2022.

"Our systems reduce greenhouse gas emissions by the equivalent of hundreds of thousands of cars in the process, primarily by reducing the amount of methane escaping into the atmosphere from incomplete combustion in flares," company president and co-founder Cully Cavness said.

Crusoe expected to reduce flaring in areas where it is operating by almost 10mn cf/d by the end of September. Its technology lowers CO2-equivalent emissions by as much as 63pc compared with continued flaring.

The company's digital flare mitigation system is also used to support other computing intensive processes, such as artificial intelligence.

The prices of crypto currencies including Bitcoin have fluctuated wildly this year with China banning all related transactions and mining. The Chinese crackdown "plays greatly into the advantage of US-based operators as it makes available hardware for domestic projects and increases the competitiveness of American operations," Cavness said.

Equinor, Devon among crypto-miner customers

Before divesting its Bakken acreage earlier this year, Norway's state-controlled Equinor was one of the producers that sold excess gas to Crusoe and provided the company with space on a well pad for its equipment. Other clients have included Devon Energy, private-equity backed Kraken Oil & Gas, and Canadian oil firm Enerplus.

North Dakota has had targets to curb flaring since 2014, with the industry spending billions trying to solve the problem. While flaring eliminates most methane — a potent greenhouse gas — the process still emits CO2. Flaring rose to 10pc of all gas produced in July, above the current 9pc limit allowed in North Dakota, due to several natural gas processing plants being offline.

As an incentive to curb the practice, North Dakota lawmakers passed legislation earlier this year that offered operators a tax credit for installing gas flaring mitigation systems like those Crusoe operates. Crusoe qualifies for emissions reduction credits because it uses waste gas to generate electricity that would otherwise have come from the grid.

Texas regulators also have adopted a tougher stance against flaring in recent months, after previously taking a largely hands-off approach.

Jim Wright, one of three Republican commissioners on the Texas Railroad Commission, said recently that companies stuck with unwanted gas should reach out to third parties — including crypto currency miners — who can "eliminate the vast majority of emissions that flaring produces and even pay the operator for the gas."


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06/02/25

Australia's Beach cuts FY24-25 oil, gas output target

Australia's Beach cuts FY24-25 oil, gas output target

Sydney, 6 February (Argus) — Australian independent Beach Energy has narrowed its oil and gas output guidance for the year to 30 June 2025, given delays in bringing the Western Australian (WA) 250 TJ/d Waitsia gas plant on line. Beach will produce 18.5mn-20.5mn bl of oil equivalent/d (boe/d) in 2024-25, it said in its half-year results to 31 December. It revised the top end of its previous forecast of 17.5mn-21.5mn boe down because of delays at Waitsia, which is operated by joint venture partner Japanese trading house Mitsui. Beach has maintained its guidance for first sales gas at Waitsia in April-June. The Adelaide-based firm last month reported its output at 10.2mn boe in July-December 2024, 15pc higher on the year, leading Beach to raise the bottom end of its guidance. The five Waitsia LNG swap cargoes that Beach has executed to date have brought forward revenue for the firm, which reported A$139mn ($87.1mn) from the two shipped in July-December 2024. A fifth cargo was lifted from Australian independent Woodside Energy's 14.4mn t/yr North West Shelf (NWS) LNG terminal in January, while a possible sixth may occur before the end of June. "We have opportunities for additional swaps in the market and we're looking very closely… I'm hoping to get another [cargo] out before the half-year," chief executive Brett Woods said on 6 February. About 35pc of the gas exported via swap cargoes to date were from Beach's own 20 TJ/d (534,000 m³/d) Xyris gas plant, meaning it will not need to be swapped back, Woods said. Beach expects 8-10 cargoes/yr of Waitsia gas to be shipped until 2028, with scope to further extend the project's LNG exports following the WA government's changes to onshore gas export rules. Waitsia partners hold a gas processing agreement with the NWS JV running until the end of 2028. Beach will start its Offshore Gas Victoria programme in 2025 as part of its ambition to become a major domestic gas supplier. This includes drilling the Hercules gas prospect in Victoria state's offshore Otway basin in April-June, described as a "large scale opportunity" with prospective reserves of 100bn ft³ (280mn m³). No change was made to Beach's 2024-25 capital expenditure guidance of A$700mn-$800mn. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Equinor Norwegian gas output up on year in 2024


05/02/25
05/02/25

Equinor Norwegian gas output up on year in 2024

London, 5 February (Argus) — Norwegian state-controlled Equinor's gas output on the Norwegian continental shelf (NCS) edged up on the year, driven by record-high output from the giant Troll field and fewer unplanned outages at NCS assets, the firm said on Wednesday. The firm's Norwegian gas output rose by 4pc on the year to 758,000 b/d of oil equivalent (boe/d) or 107mn m³/d in 2024. This was driven by "strong contributions" from the Troll and Johan Sverdrup fields, Equinor said. Gas production from Troll — in which Equinor holds a 31pc stake — reached an all-time high last year at roughly 116mn m³/d, the Norwegian producer has said. And there were fewer "unplanned losses" on the NCS last year than in 2023, Equinor said. The firm was the largest producer on the NCS in 2023, accounting for more than a third of total gas output on the shelf, the latest available data from the Norwegian Offshore Directorate show. Equinor's global gas output rose by 2pc to 985,000 boe/d or 139mn m³/d last year. But the firm's combined oil and gas global output was slightly lower in 2024, with a small increase in gas production insufficient to offset lower liquids output. Equinor's equity liquids production was 1.08mn boe/d in 2024, down by 3pc on the year. Equinor expects "more than 10pc growth from 2024-27" in oil and gas production, reaching a peak at 2.3mn boe/d in 2027. And the firm estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Equinor's reported Norwegian gas prices dropped by 22pc on the year to $9.47/mn Btu, or €31.01/MWh, in 2024, using Wednesday's exchange rate. And the average reported price for its US gas decreased by 4pc to $1.70/mn Btu, or €5.57/MWh. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, 23pc lower on the year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capital expenditure allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. By Georgia Gratton and Jana Cervinkova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Equinor scales back renewables plan


05/02/25
05/02/25

Equinor scales back renewables plan

London, 5 February (Argus) — Norwegian state-controlled Equinor said today it has cut by up to 25pc its target for renewables capacity by 2030, and abandoned a plan to allocate half its capital expenditure (capex) to low carbon projects by that same year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capex allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. It now plans to reduce net carbon intensity — which includes scope 3 emissions, from sold products — by 15-20pc by 2030 and by 30-40pc by 2035, from a 2019 baseline. The previous targets were at the higher end of these ranges. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, lower on the year by 23pc. The company's oil and gas output was slightly lower in 2024, with a small increase in gas production not quite offsetting lower liquids output. Equinor's equity liquids production was 1.08mn b/d of oil equivalent (boe/d) in 2024, down by 3pc on the year, and its equity gas production rose by 2pc to 985,000 boe/d over the same timeframe. It expects "more than 10pc growth from 2024-27" in oil and gas production, and estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Liquids and gas prices fell in 2024. Equinor's reported Norwegian and US gas prices rose by 5pc and 26pc, respectively, on the year in the October-December period, but this was not enough to assuage a decrease across the year. The average reported price for its Norwegian gas dropped by 22pc on the year to $9.47/mn Btu in 2024, and the average reported price for its US gas decreased by 4pc to $1.70/mn Btu. Equinor reported an average liquids price of $74.1/bl in 2024, 1pc lower on the year. Its reported fourth-quarter 2024 liquids price fell by 10pc from the same period in 2023, to $68.5/bl. Equinor's power generation rose in 2024, boosted by additions in Brazil and Poland in 2023 and the start of the 531MW Mendubim solar plant in Brazil in 2024. Equinor's share of power generation stood at 4,917GWh in 2024, up by 19pc on the year — but its renewables share rose faster, by 51pc to 2,935GWh. Equinor has maintained its target of 30mn-50mn t/yr of CO2 storage by 2035. Equinor trimmed 600,000 t/CO2 equivalent (CO2e) from its absolute scope 1 and 2 — or operational — emissions over 2023-4. Scope 1 and 2 emissions from its operated production stood at 11mn t/CO2e in 2024. The company's upstream carbon intensity fell to 6.2kg CO2/boe in 2024, down by 7.5pc on the year. Equinor will buy back $5bn of shares in 2025, having bought $6bn in 2024. It completed the fourth $1.6bn tranche of its 2024 programme on 14 January and will launch the first tranche — of up to $1.2bn — of its 2025 programme on 6 February. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump proposes US take control of Gaza


05/02/25
05/02/25

Trump proposes US take control of Gaza

Washington, 4 February (Argus) — US president Donald Trump on Tuesday called for the US to take over Gaza, relocate the population of more than 2mn to other countries and then redevelop the enclave. Meeting with Israeli prime minister Benjamin Netanyahu at the White House, the one-time real estate developer sketched out a plan in which the US would "own" Gaza, level what has become a "demolition site" and remake the territory into the "Riviera of the Middle East". Assuming such a role would embroil the US far more deeply in what has been the deadliest conflict in the region in decades. Asked whether US troops would be involved in his plan, Trump said: "If it's necessary, we'll do that." Trump did not say where, exactly, the Palestinians from Gaza would be relocated, although he said he had a "feeling, despite them saying no" that Jordan's King Abdullah and Egyptian president Abdel Fattah el-Sisi "will open their hearts and will give us the kind of land we need to get this done". Trump said the only reason people want to return to their homes in Gaza is because they believe they have no alternative. Instead, they could be relocated and "live in comfort and peace". And after the rebuilding is completed, people from "all over the world" would live in the new Gaza — "Palestinians also," Trump said. Netanyahu praised Trump for his "willingness to puncture conventional thinking" and to propose ideas that could reshape the Middle East. "You cut to the chase," Netanyahu told Trump during the press conference. "You see things others refuse to see. You say things others refuse to say. And after their jaws drop, people scratch their heads. And they say, ‘You know. He's right.'" But Saudi Arabia's foreign ministry, in an apparent reaction to Trump's proposal, Tuesday argued the international community has a responsibility to alleviate the suffering of the Palestinian people "who will remain steadfast on their land and will not move from it". By David Ivanovich Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican peso volatility persists despite tariff delay


04/02/25
04/02/25

Mexican peso volatility persists despite tariff delay

Mexico City, 4 February (Argus) — The Mexican peso remains volatile despite a bump from the last-minute deal postponing US President Donald Trump's threatened 25pc tariffs on Mexican imports, financial analysts said. The US agreed Monday to delay the tariffs for one month after discussions between Trump and Mexican President Claudia Sheinbaum. In return, Mexico pledged to deploy 10,000 National Guard troops to its northern border to combat drug trafficking, with a focus on fentanyl. The peso initially reacted positively to the news, strengthening by nearly 3pc late Monday after the agreement was announced. Still, today the Mexican peso weakened 0.4pc to Ps20.5 to the dollar by the end of trading, according to data from Mexico's Central Bank (Banxico). The peso has depreciated 16.6pc against the dollar from a year ago, according to Banxico data. The currency will remain volatile until there is greater clarity on whether tariffs will ultimately be imposed and at what level, BBVA Mexico bank analysts said in a note. If the US proceeds with a 25pc tariff, the peso could weaken to Ps24/$1, pushing Mexico's economy into a 1.5pc contraction this year, according to the bank. A lower 10pc tariff would be more manageable, BBVA Mexico added, as peso depreciation would offset some cost increases for US importers. In that scenario, Mexico's economy could still grow by 1pc in 2025. "Markets have debated whether to take Trump's policy promises seriously but not literally, or both seriously and literally," Barclays analysts wrote in a note to investors. Barclays also noted that the US sees itself as having the upper hand in any trade war, as a far greater share of Canadian and Mexican exports depend on US demand than vice versa. Mexico's state-owned oil company Pemex typically benefits from peso depreciation because of its US dollar-denominated crude exports, which help offset higher fuel import costs. "Pemex's revenues are tied to international oil prices, providing a natural hedge," the company said in its latest earnings report. However, analysts warned that Pemex's shift toward domestic refining over exports could reduce this buffer, leaving the company more vulnerable to foreign exchange swings, particularly as it carries a large dollar-denominated debt load. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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