all about cryptop referances
In November 2020, Colorado banned gas flaring, venting and the release of raw gas into the atmosphere. While Centennial has a large number of well sites, a recent report shows that about half a dozen Colorado oil and gas companies are utilizing gas-to-bitcoin reduction systems, and those firms are raking in a lot of bitcoin.
On August 29, 2022, Colorado Sun writer Mark Jaffe reported on Colorado-based gas and oil companies teaming up with bitcoin miners, explaining how “they’re making quite a bit of coin.” Jaffe says there are at least half a dozen oil and gas refiners using gas-to-bitcoin reduction systems in the natural gas-rich state of Colorado.
The growing number of bitcoin flare reduction 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 an oil and gas company chooses to operate in the state of Colorado, it must connect to a pipeline to reduce excess gas.
If an oil and gas company cannot comply with the regulations, COGCC will shut down operations. Jaffe’s report explains that the COGCC is aware of these gas and oil companies utilizing gas-to-bitcoin solutions. A COGCC spokeswoman, Megan Castle, told the Colorado Sun (CS) reporter 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 example, the CS reporter noted that Renegade Oil and Gas partnered with Datahawk Energy and Adams County’s oil and gas inspector shut down the business. An Adams County spokeswoman, Christa Bruning, would not comment on the lawsuit that began after Renegade’s closing.
The CS report says 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 in the North Park Basin. D90’s president, Dan Silverman, told the COGCC at a hearing that sites like his have no connecting infrastructure within 60 miles of the basin.
Silverman said the oil would have to be hauled away, but D90 Energy made a presentation to the commission that showed off six Crusoe Energy flare gas reduction modules located at the company’s well site. Silverman told COGCC hearing attendees 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 approximately seven well sites per year. Also, Crusoe has made presentations to the COGCC, according to the CS report on Monday.
Crusoe’s president and co-founder Cully Cavness explained at a hearing in June 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 rival company.
What do you think of half a dozen oil and gas companies in Colorado leveraging gas-to-bitcoin solutions? Let us know what you think about this topic in the comments section below.
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