Ted Cruz’s FLARE Act: Boosting Energy, Bitcoin, and the Ohio Valley
Senator Ted Cruz (R-TX) has introduced the FLARE Act (Fueling Long-term Ambitious Reliable Energy) to push back against the Biden administration’s environmental policies and bolster U.S. energy independence. The bill primarily seeks to prevent restrictions on routine gas flaring, a practice used in oil and gas extraction, arguing that such measures harm American energy production and economic growth.
How the FLARE Act Benefits Bitcoin Mining and the Ohio Valley
The FLARE Act could have significant benefits for Bitcoin mining, West Virginia, and the Ohio Valley, particularly in energy costs, economic development, and industrial revitalization.
1. Lower Energy Costs for Bitcoin Mining
Bitcoin mining operations thrive on cheap, abundant energy. If the FLARE Act reduces regulatory restrictions on flaring, it could lead to more natural gas availability, potentially lowering electricity costs.
Some Bitcoin miners are already using flared gas to power mining operations. If flaring regulations are relaxed, companies could partner with oil and gas producers to capture and monetize wasted gas through Bitcoin mining, reducing emissions while keeping energy costs low.
2. Industrial and Economic Growth in West Virginia & Ohio Valley
The Ohio Valley, especially West Virginia and eastern Ohio, has vast natural gas reserves due to the Marcellus and Utica Shale formations. Reducing restrictions on flaring could encourage more oil and gas development, bringing jobs and investment to the region.
Increased natural gas production could support energy-intensive industries, including Bitcoin mining, AI data centers, and DePIN infrastructure, aligning with efforts to revitalize the regional economy through high-tech investments.
3. Revitalization of Former Industrial Sites
West Virginia and the Ohio Valley have many former steel mills and industrial sites with grid connections and infrastructure that could be repurposed for Bitcoin mining and data centers.
The FLARE Act could incentivize more energy infrastructure projects, making it easier to secure cheap power purchase agreements (PPAs) for industrial sites that can be converted into mining farms or AI data hubs.
4. Strengthening Energy Independence
With more local energy production, Bitcoin mining operations in the region could become less dependent on fluctuating energy markets, ensuring stable and predictable energy costs.
As global energy policies shift, having domestic control over energy production ensures that West Virginia and Ohio Valley industries remain competitive in the long term.
Political and Industry Reactions
Supporters of the FLARE Act, primarily Republican lawmakers and industry groups, claim that flaring regulations are an overreach that could drive up energy costs and hinder U.S. competitiveness. The Texas Oil & Gas Association has voiced support for the bill, emphasizing the role of flaring in ensuring safe and efficient production.
However, environmental organizations and Democratic lawmakers have strongly opposed the legislation, arguing that unrestricted flaring wastes valuable natural gas, exacerbates climate change, and poses health risks to communities near drilling sites. The Biden administration has defended its regulatory stance, pointing to the need to curb methane emissions as part of its broader climate commitments.
What’s Next?
The FLARE Act faces an uphill battle in the Democrat-controlled Senate but is likely to gain traction among conservatives and energy-state representatives. Whether the bill advances or not, it underscores the ongoing partisan divide over energy policy in the United States.
For now, the debate over gas flaring remains a flashpoint in the larger conflict between fossil fuel advocates and climate-focused policymakers. However, if passed, the FLARE Act could open the door for new Bitcoin mining, AI, and energy infrastructure opportunities—particularly in West Virginia and the Ohio Valley, where industrial revitalization is a pressing concern.