CoinDesk Podcast Network THE MINING POD: What Bitcoin Miners Get Wrong About Oil And Gas w/ Sean McDonough
Jun 17, 2025
Sean McDonough, president and founder of New West Data, discusses the intersections of oil and gas with Bitcoin mining in Alberta. He shares insights on the pros and cons of full ownership versus joint ventures, highlighting the economic viability of using flared gas for energy. Challenges like regulatory hurdles and market volatility are scrutinized, alongside the evolving dynamics between traditional energy firms and Bitcoin miners. McDonough also offers predictions on hash rates and the positioning of Alberta in the broader North American mining landscape.
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Benefits of Full Vertical Integration
- Owning oil wells outright gives full control and cost certainty of the natural gas used for Bitcoin mining.
- Vertical integration also provides dual revenue streams and diversified cash flow, balancing oil and Bitcoin income.
Complexity Blocks Integration
- Running an oil site requires deep oil and gas operational knowledge and regulatory compliance.
- This complexity deters most Bitcoin miners from vertical integration without oil and gas backgrounds.
Infrastructure Limits Gas Market
- Lack of natural gas infrastructure makes it uneconomical to transport gas from many oil wells.
- Without pipelines or gas plants, gas must be flared or used onsite, creating opportunity for Bitcoin mining.