Russian oil industry wants to mine crypto using natural gas wasted in oil drilling. Companies are waiting for regulatory approval for this.
According to the news of the trading company Kommersant, the Central Bank of Russia, the Ministry of Industry and Trade and the Ministry of Digital Development are considering this demand of oil companies.
“Combined petroleum gas” is natural gas found above oil reserves. Extraction and transportation of these types of gases is generally not profitable. For this reason, this gas is usually burned when drilling for oil. The energy deficit created during this combustion process is not used anywhere and produces greenhouse gases.
There is a problem in this regard, as crypto-asset mining is not regulated in Russia and has no legal place.
The interests of the Russian oil industry give rise to this political pressure. The bulk of the country’s national budget comes from fossil fuel exports.
Jurica Bulovic, director of the US-based mining company Foundry Digital, said: