Colorado has banned the use of gas venting and flaring in November 2020. The centennial state is home to many well sites. However, recent research shows that about half a dozen Colorado oil-and-gas companies have been using gas-to-bitcoin flaring mitigation systems. These firms are making a lot in bitcoin.
According to a report, at most a dozen Colorado-based gas and oil firms are using gas-to-bitcoin mitigation solutions
On August 29, 2022, the Colorado Sun author Mark Jaffe reported on Colorado-based gas and oil companies teaming up with bitcoin miners and explaining how “they’re making quite a bit of coin.” Jaffe details that there are at least a half dozen oil and gas refiners using gas-to-bitcoin flare mitigation systems in the natural gas-rich state of Colorado.
The growing number of bitcoin flare mitigation sites in Colorado is interesting because the state’s regulatory watchdog, the Colorado Oil and Gas Conservation Commission (COGCC), has banned natural gas flaring. If any oil and/or gas company wishes to establish operations in Colorado, they must link to a pipeline that will reduce excess gas.
COGCC may close down operations if an oil or gas company fails to follow the regulations. Jaffe’s report explains that the COGCC is aware of these gas and oil firms leveraging gas-to-bitcoin solutions. A COGCC spokeswoman, Megan Castle, told the Colorado Sun (CS) journalist that “it is definitely on our radar.”
While some operations are “making quite a bit of coin,” Jaffe reports that some operations in Colorado have been shut down. For instance, the CS reporter noted that Renegade Oil and Gas collaborated with Datahawk Energy and Adams County’s oil and gas inspector shut the business down. A spokeswoman for Adams County, Christa Bruning, would not comment on the lawsuit that started over Renegade’s shutdown.
Crusoe Energy’s Gas-to-Bitcoin Solution Reduces 99.8% of Methane Compared to Traditional Flaring’s 93%
According to CS, D90 Energy from Houston is working with Crusoe Energy of Jackson County in Colorado. The North Park Basin is home to a large amount of oil and gas production in Jackson County. D90’s president, Dan Silverman, told the COGCC at a hearing that sites like his have no connection infrastructure within 60 miles of the basin.
Silverman said that the oil had to be trucked away, however, D90 Energy gave a presentation to the commission showing off six Crusoe Energy flare gas mitigation modules located at the company’s well site. Silverman told the COGCC hearing’s participants that people will see “a lot more Crusoe modules out there” for a few years.
D90 Energy’s president further noted that over the next three to four years, the company plans to drill roughly seven well sites per year. According to Monday’s CS report, Crusoe also presented to COGCC.
Crusoe’s president and co-founder Cully Cavness explained at a June hearing that the company’s technology reduces 99.8% of methane compared to 93% for traditional flaring. Crusoe raised $505 million last April 2022, and it was announced that they are suing another company.
Do you have any thoughts about Colorado’s half dozen oil-and-gas companies that use gas-tobitcoin to make their business more profitable? Comment below and let us know how you feel about the subject.
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