[Editor's note: A version of this story appears in the August 2021 issue of Oil and Gas Investor magazine.]

By now, several E&P companies have been in conversations with crypto miners and many more have been hearing and reading about this latest innovation making waves in the oil patch.

At the simplest level, mining for digital coin requires just three things: access to electricity, a bank of specialized mining computers and a connection to the internet.

Given the simplicity, a mining farm can be set up nearly anywhere. Internet and computer access are fairly ubiquitous. So savvy miners seek a competitive advantage in the third piece of the puzzle: lower-cost electricity.

A couple of common targets include sites with excess electricity-generation capacity and oil wells that are producing otherwise uncommercial associated gas.

Finding unused or stranded natural gas makes for a perfect opportunity to bring in a generator and accompanying array of mining computers.

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