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 that at least half a dozen Colorado-based gas and oil companies are taking advantage of gas-to-Bitcoin mitigation solutions
On August 29, 2022, Colorado Sun writer Mark Jaffe told Colorado-based gas and oil companies, together with bitcoin miners, how “they are making quite a coin.” Jaffe details that there are at least half a dozen oil and gas refiners using the gas-to-bitcoin flare mitigation system 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, COGCC will cease operations. Jaffe reports that the COGCC is aware of these gas and oil companies taking advantage of gas-to-bitcoin solutions. COGCC spokeswoman Megan Cassel told the Colorado Sun (CS) journalist that “it’s 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 93% of traditional flaring
CS reports that Houston-based D90 Energy is working with Crusoe Energy in Jackson County, Colorado. There is a lot of gas and oil production going on in this area in Jackson County, and most of the refinery work is located in the North Park Basin. D90’s president, Dan Silverman, told COGCC in 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.
The chairman of D90 Energy further said that over the next three to four years, the company plans to drill about seven well sites per year. In addition, Crusoe has made presentations to the COGCC on Monday, as CS reports.
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.
