Several local mining experts agree that there is enough gas in the country to set up mobile fleets of Bitcoin miners right next to oil drilling operations. Estimates put the loss of 13,000 cubic meters of gas in domestic flaring operations, which could be used to power Bitcoin mining farms.
Venezuela could become a Bitcoin gas mining powerhouse
Venezuela’s recent restart of its oil industry has sparked a surge of speculation about the use of flared gas to power the country’s Bitcoin mining facilities.
The country has 6,000 cubic kilometers of gas reserves, but the world’s ninth country with the most proven reserves has to release most of it into the atmosphere because its development is not practical. According to estimates, this figure corresponds to almost 25% of Venezuela’s gas production.
Demerson David, a local Bitcoin miner, told Criptonoticias that using this gas to mine Bitcoin is not only possible, but also a strategic opportunity for the state to utilize resources that would otherwise go to waste.
He said:
“If we follow a model like Argentina’s, we can install modular plants at the wellhead to instantly generate electricity and inject capital directly into the national economy.”
Argentina is a pioneer in this field in Latin America, with companies like Techpetrol reporting increased production after implementing crypto mining operations in the Vaca Muerta oil field, which produces more than 126 million tons of oil.
Venezuelan Bitcoin analyst Sultan Bitcoin said Venezuela burns energy to power all of Central America, and Bitcoin mining could provide a way to monetize these resources while the infrastructure to process and transport this gas is built.
He evaluated:
“The great thing about Bitcoin mining is that you don’t have to immediately build very long power lines and you can set up containers with mining equipment right there in an industrial zone.”
This would take these activities off-grid, avoiding straining the aging local power grid and directly impacting Venezuelans. Nevertheless, he acknowledges that conditions need to evolve to enable this type of investment.
“The current legal framework is uncertain. International investors need assurance that their equipment will not be nationalized or arbitrarily shut down,” he concluded.
read more: Techpetrol quintuples crude oil production with cryptocurrency mining in Argentina
FAQ
What recent developments are causing speculation regarding Bitcoin mining in Venezuela?
The opening of Venezuela’s oil industry has sparked interest in the use of flared gas in Bitcoin mining facilities, given the country’s rich gas reserves.How much gas is exploding in Venezuela and what does this mean?
Venezuela has rekindled about 25% of its gas production due to logistical challenges, indicating there is a significant resource that can be used for energy.What opportunities do local miners see in using flare gas for Bitcoin mining?
Local miners believe that using flare gas for Bitcoin mining could create strategic economic opportunities by generating electricity directly at the wellhead.What challenges need to be addressed for Bitcoin mining to be successful in Venezuela?
Analysts stress that a clearer legal framework is needed to ensure foreign investors are protected from the risk of nationalization or arbitrary closure of facilities.
