ConocoPhillips is selling extra gas to bitcoin miners in North Dakota
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Cramer’s recommendation for investors looking to take a more conservative approach is ConocoPhillips. Conoco has a dividend yield of 3.5 percent, which Cramer believes makes it one the most friendly companies for shareholders. Conoco has executed significant share buybacks which have helped to reduce the share count. Cramer explained that Houston-based Conoco is also increasing shareholder value through its dissolution. Conoco plans to spin-off its downstream refinement and marketing businesses while keeping its more rapid growing exploration business and product.
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Petroleum and natural gas are majors ConocoPhillipsIt is located in bitcoin mining fuel business.
CNBC reported that the company has one Bitcoin pilot project in Bakken. The Bakken is a North Dakota region known for its potential to produce new oil.
ConocoPhillips representatives stated that the company does not operate the crypto mine. Instead, it sells gas to a processor for bitcoin that is controlled and owned by third parties.
ConocoPhillips shares are currently trading at 2.5% less than Tuesday afternoon.
A similar initiative was taken by the oil and natural gas industry to encourage bitcoin mining. reduce routine flaring, or burning off extra gas, to zero by 2030. It is hugely helpful to co-locate a Bitcoin mine with an oil and gas well.
Oil and gas companies struggled for years with how to deal with an oil spillage. While oil is easily transported to remote locations, gas transport requires the use of a pipeline. A drilling crew will often dump the gas into a pipeline and then take the money the buyer is willing to give them. Drillers will often flare or burn the gas if it is more than 20 miles away from a pipeline. This is how you’ll see the flames coming from oil fields.
Apart from the negative environmental effects of flare gas drilling, they are actually burning money.
ConocoPhillips didn’t disclose which Bitcoin miner it sold to to CNBC, but the usual scenario is that Crusoe Energy Systems, based in Denver, will put a container containing thousands of miners onto an oil well. Then, the natural gas is diverted into generators that convert the gas to electricity, and then the miners are powered.
This process decreases the CO2-equivalent emissions of about 63% when compared with continued flaring. according to research from Crusoe.
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