Oil and gas giant Shell recently announced its move into the Bitcoin mining industry with the offer of its lubricant and cooling solutions to miners.
According to reports, the oil company has signed a two-year deal with Bitcoin Magazine as the primary sponsor for two successive editions of the annual Bitcoin Conference from next year.
Multiple reports indicate that the upcoming conference will be attended by company representatives, who will deliver keynote lectures on how to enhance the energy cost of Bitcoin mining using Shell’s lubricant and cooling system.
A top-level executive with Shell Lubricants, Darin Gonzalez, said that the oil giant seeks to provide zero carbon emission alternatives to clients, especially Bitcoin miners. Gonzalez added that the main benefit of the immersion cooling liquid is that it is a sustainable and renewable energy source.
Commenting on the latest development, the CEO of Bitcoin Magazine, David Bailey, stated that having a top energy player like Shell in the Bitcoin mining industry is a massive win for the crypto asset.
Based on an announcement by Shell last year, it said it plans to expand its product portfolio by offering immersive cooling fluids for data platforms. The firm explained that data centers account for nearly 1% of global electricity consumption.
In addition, a third of this comes directly from electrical cooling parts. Bitcoin mining also takes place at data centers. The global energy behemoth is headquartered in London, United Kingdom, with a wholly owned US-based subsidiary, Shell USA.
Also read:Furthermore, the upcoming Bitcoin Conference will take place in May next year in Miami, USA.
Supporting Bitcoin Mining With Fossil Fuel
As far back as 2020, a 10-company conglomerate consisting of oil giants like Shell and Exxon, also known as the OOC Oil and Gas Blockchain Consortium, completed the first oilfield onshore payment at a U.S. shale field.
Since then, critical players in the oil and gas sector have continued to explore Bitcoin mining as they look to cut down on their pollution. However, critics see the move as one of the strongest initiatives planned by the oil corporation.
In 2021, Exxon started its Bitcoin mining pilot project in North Dakota’s Bakken oil fields. In addition, the U.S.’s largest oil firm plans to execute the same project at its Alaska and Nigeria oil fields.
Meanwhile, the motive behind oil companies’ continued move into crypto mining is another way to make their corporate image appear green amid a persistent gas problem.
Due to the excess gas produced during oil exploration, oil firms seek alternative ways to use the methane gas produced. Their best bet is to put the gas to use through Bitcoin mining. Crypto mining uses a large amount of electricity that oil firms want to leverage.
By setting up mining rigs where energy can be easily sourced, Exxon’s supply of extra gas will fuel the electricity demand of mining. By using waste gas for crypto mining, oil companies aim to align digital assets while addressing climate concerns.
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