We’re in a mess, Wyoming. But together, we can find a way forward and it starts with innovation and different thinking.
Wyoming needs oil producers to get back to work. One way to help them is to lower costs and find ancillary revenue through new uses for their natural gas, instead of flaring.
Old technology mixed with new innovation can convert the gas to electricity that, in turn, powers remote data centers in proximity to the source. These data centers are racks of computers which “mine” cryptocurrency. The point here is they need inexpensive electricity to power the equipment. This is the way forward and it can flex to the needs of the producer.
The first way for the producer to get involved is to simply grant the gas to a company which converts the gas to electricity and powers the data centers. This “disposes” of the gas without the permitting, maintenance of infrastructure, and negative impact on the environment. This saves them money.
The second is to build and maintain the gas infrastructure, but sell the gas to a company to power the data center. This saves less money, but provides revenue.
The third option is to get involved in the data mining venture itself. This comes with risk, but also rewards that can increase the $0.10 per MCF (measurement of the gas) into $4.00+ MCF range.
Air quality goals can be improved and the energy producers can get back to work because, at the least, the flare gas costs can be lowered and, at the most, can create substantial revenue.
The key is embracing new ideas and innovation and together, Wyoming, we can do this!
Seth Frentheway is the President of Environmental Technologies at Encore Green Environmental and can be reached at Seth.Frentheway@EncoreGreenEnvironmental.com