There are buzzwords that pop up in our industry such as “Real Use Case” and “Intrinsic Value”. What that tells us is that investors and the general public want to see something concrete with cryptocurrencies. It’s difficult to wrap your mind around the massive value of a digital currency. When you get there for the first time, the doors are blown off of any traditional mindset. How does this tie into Alberta and other areas of North America with foundations in the oil & gas industry?
The oil and gas industry has had its ups and downs over the decades, which we are all aware of. Current prices of crude oil & natural gas have created a pinch on profitability and production. What can be done to improve the oil & gas industry with all of the amazing technology that we see around the world in the last 10 years? There are several answers to this, and it seems that the oil & gas industry themselves are the last ones to find this out.
One issue that is always on deck with natural gas is that it isn’t easy to store or transport, and with contracts to generate certain amounts, there are always overages in production. Companies must decide with creative methods to deliver product via tankers, pipelines, or use venting and flaring to get rid of the excess natural gas. It’s wasteful and bad for the environment due to releasing greenhouse gasses. Canada in specific implemented “Directive 60” which reduced flaring & venting by 63% between 1996 & 2014. It still is not a solution. Flaring & venting is really a band-aid solution to the industry. It brings penalties in fines from the Canadian government depending on the volume. We need something better, and now we have it.
We all understand the oil and gas industry is searching for creative solutions to positively impact their bottom line. A company based out of Calgary, Alberta has what many would consider being the holy grail of solutions for natural gas companies. NovumX has taken cryptocurrency mining as a way to convert excess natural gas into cryptocurrencies, onsite and in the simplest fashion possible.
(Below: Michael Ainger [left] & Peter Allard [right])
What is cryptocurrency mining? These hardware devices are used to verify transactions around the world as they are added to blockchains or digital ledgers. These are the reasons a bank and their networks are not needed with Bitcoin and other cryptocurrencies.
(Above: ASIC Cryptocurrency Miners @ the Calgary NovumX Mining Facility)
The owners of NovumX, Michael Ainger & Peter Allard, gave me a tour of their mining facility. It is a fully operational setup specifically for demonstrating to oil & gas companies what they can do to solve an ongoing issue. The basis for their solution is simple. NovumX will purchase excess natural gas and set up an onsite cryptocurrency mining facility and install their own power generator which will use the excess natural gas to power the miners. The solution was not available years ago! Why is it achievable today?
This really is not a simple solution for the public or oil & gas companies. What you need is the expertise of NovumX because of their background in facilities/power management. Michael & Peter know exactly how natural gas plants work from start to finish, so they can implement this new system to sell natural gas without trucks or pipelines. They develope specialized infrastructure, offering improved netbacks and increased return on revenue to producers. This is accomplished all while creatively utilizing existing commodities with NovumX’s innovative “Gas to Crypto” process. The cryptocurrencies that they are able to mine onsite, have an immediate value in the world economy and an increased projected value as this industry continues to grow exponentially.
Imagine you are an oil & gas company spending a certain amount of money each year on penalties and fines for flaring and venting. It’s a normal cost of business and built into the margins that you work with. Along comes a company such as NovumX who says that they will take that cost of yours and pay for the energy they can use, reversing the cost into profit, saving the environment, and creating the digital currency that they will use for countless other options for their company.
On top of dropping this unparralelled equasion on the O&G industry, NovumX are acting as stewards of our environment. NovumX believes re-using waste energy from the oil and gas industry is a sustainable and environmentally friendly way to power the crypto mining industry. Also, alignment with traditional Alberta banking institution affords NovumX the unique ability to liquidate crypto holdings to generate cash flow for our industry partners.
This scenario is groundbreaking, and industry changing. In a few short years, this will be an industry standard for natural gas plants to use. The best way to take advantage of this will be to rely on the experience and expertise of NovumX. There are so many other companies who could, in theory, do the same thing, but they will not have the resources or application of their knowledge to back up this idea such as NovumX does.
At Crypto Culture Magazine, we are extremely proud to be partnering with NovumX as one of our sponsors. Keep an eye out for them at events related to oil & gas as well in publications detailing more about this incredible new application they have made. We will be marketing and sharing this wonderful real case use of cryptocurrencies to provide value to our city, our province and beyond.
For more information, please visit the NovumX website www.novumx.com.