SOCAL, Saudi Arabia, and Bitcoin… If you thought the oil industry had booms…

I meant to note this two days ago but the photo on the top is the signing ceremony on 29 May1933 between SOCALm (Standard Oil Company of California) and Saudi Arabia to manage the Kingdom’s oil concession. Clearly a historic event in the development of the oil industry.

As a contrast… I couldn’t help noticing this story about Bitcoin and it’s energy usage. In Chelan County, renowned for cheap electricity and:

an area famous for apples, wheat and conservative politics [it] has been transformed into a kind of cyber-boomtown, with Bitcoin mining operations that range from large-scale, state-of-the-art warehouses to repurposed cargo containers to backyard sheds. By the end of this year, according to some estimates, the Mid-Columbia Basin could account for as much as 30 percent of the global output of new Bitcoin and large shares of other digital currencies, such as Litecoin and Ethereum.

There is a boom going on:

In a normal year, demand for electric power in Chelan County grows by perhaps 4 megawatts ­­— enough for around 2,250 homes — as new residents arrive and as businesses start or expand. But since January 2017, as Bitcoin enthusiasts bid up the price of the currency, eager miners have requested a staggering 210 megawatts for mines they want to build in Chelan County. That’s nearly as much as the county and its 73,000 residents were already using…

 The scale of some new requests is mind-boggling. Until recently, the largest mines in Chelan County used five megawatts or less. In the past six months, by contrast, miners have requested loads of 50 megawatts and, in several cases, 100 megawatts. By comparison, a fruit warehouse uses around 2.5 megawatts.

However, the acquisition of resources has not gone quite as smoothly:

China electricity.png

I am pretty sure the crypto-miners from China are thinking about crypto-sceptics (like me), from the comfort of their private jet, sure that we are the people who just don’t get it.  In future years maybe someone will dig up a photo of the dam master and the Chinese miner signing a supply agreement… but I have my doubts…

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