Two 23-year old Texas residents: Brent Whitehead and Matt Lohstroh, started mining Bitcoins in East Texas oil fields. The youngsters ventured into the unknown terrain. Whitehead hailed from an engineering background; his family has a history of oil and gas production. CNBC reports that the oil production companies face significant difficulty avoiding natural gas extraction during mining. The unwarranted extraction of natural gas often resulted in pipeline damages and other casualties. Whitehead was obsessed with Bitcoin, which led him to earn huge profits through pursuing his passion.
The Oil Industry Faces Several Problems
CNBC quoted Whitehead; he said, “Growing up, I always saw flares, just being in the oil and gas industry. I knew how wasteful it was. It’s a new way to not only lower emissions but to monetize gas.” The Texans signed lucrative deals with major oil companies, the boys have assembled a six-member team and added more in a quest to their business expansion. The innovative idea might transform the oil and gas industry and contribute to the country’s economy; the mining business will solve flare problems and increase productivity. The oil industry will likely witness multiple reforms in the next few years.
Bitcoin Enables Efficient Methane Combustion
Several industrialists in the oil field believe that Bitcoin’s arrival can solve significant problems, and its benefits are underappreciated. The mining process is costly and requires enormous amounts of electricity and advanced equipment. The blockchain offers several perks over the old-age transactions methods. CNBC quoted Steve Barbour, founder of Upstream Data, who said, “The cool thing about bitcoin that is under-appreciated by a lot of the naysayers is that it’s a portable market; you can bring it right to the source of energy.” The industry looks to shift to innovative methods and increased productivity. “The thing about oil and gas is that it is a very distributed and reliable power draw like a Bitcoin mine is quite a good fit. It’s a sort of a match made in heaven actually, ” he added. CNBC reports that Bitcoin’s arrival into the extraction will allow the companies to combust the methane at an affordable price; this method can prevent the flares.