Amid Colorado"s Gas Flare Ban, Report Shows Half Dozen Gas and Oil Firms Are Raking in a Lot of Bitcoin
In November 2020, Colorado banned gas flaring, venting, and the release of raw gas into the atmosphere. While the centennial state has a large number of well sites, a recent report shows that roughly a half dozen Colorado oil and gas companies are leveraging gas-to-bitcoin flare mitigation systems and these firms are raking in a lot of bitcoin. Report Shows at Least a Half Dozen Colorado-Based gas and Oil Firms Are Leveraging 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. Essentially, if any oil and gas company chooses to operate in the state of Colorado, it must connect to a pipeline to mitigate the excess gas.
If an oil and gas firm cannot comply with the regulations, the COGCC will shut the operations down. 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%
The CS report says the Houston-based D90 Energy is working with Crusoe Energy in Jackson County, Colorado. Jackson County has a lot of gas and oil production going on in the region, and much of the refinery work is located in the North Park Basin. 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. Moreover, Crusoe has given presentations to the COGCC, according to the CS report on Monday.
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 recently raised $505 million in April 2022 and three days ago it was reported that the company is suing a competitor company. Tags in this story Adams County, Christa Bruning, COGCC, colorado, Colorado bitcoin, Colorado bitcoin mining, Colorado BTC, Crusoe, Crusoe Energy, Cully Cavness, D90 Energy, Dan Silverman, Datahawk Energy, Flare Gas, flare gas mitigation modules, gas venting, gas-to-bitcoin, gas-to-bitcoin solutions, Jackson County, Mark Jaffe, Megan Castle, natural gas, North Park Basin, oil and gas, raw gas, Renegade Oil and Gas, the Colorado Sun, the Colorado Sun report
What do you think about the half dozen oil and gas companies in Colorado leveraging gas-to-bitcoin solutions? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today. Itau Unibanco Selected by Central Bank of Brazil to Build Real-Pegged Stablecoin Solution NEWS | 14 hours ago UN Human Rights Chief Voices Concern Over Assange Extradition Case, Wikileaks Continues to Raise Large Sums of Crypto NEWS | 16 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleIMF Expects US Economy to Experience High Inflation for at Least Another Year or Two Next articleXbox Boss Phil Spencer Skeptical About Metaverse, Criticizes Play-to-Earn Models Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher