\begin{frame}{Chapter III}
	\huge
	\bf{Bitcoin Mining, the Next Shale Boom?}
\end{frame}
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
\begin{frame}{Guiding Question}
	\Large
	How will bitcoin mining change oil production decisions in the United States?
	\large
	\vfill
\onslide<2->{Basin and state fixed effect model of flared gas value. Structural vector autoregression (SVAR) model of oil production elasticity. Time series model of bitcoin mining energy use.}
	\begin{itemize}
		\onslide<3->{\item{Effect depends on location}}
		\onslide<4->{\item{Response is \emph{not sensitive} to bitcoin price}}
		\onslide<4->{\item{Response is sensitive to natural gas price}}
		\onslide<5->{\item{Up to a 0.55\% increase in oil production}}
		\onslide<6->{\item{Oil revenues could increase by 0.63\%}}
		\onslide<7->{\item{Global oil price would decline by 0.2\%}}
	\end{itemize}
\end{frame}
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
\subsection{Background}
\begin{frame}{Background: Bitcoin mining}
	\begin{columns}
		\begin{column}{0.5\textwidth}
			\begin{itemize}
				\onslide<2->{\item{Adds transactions to the block chain}}
				\onslide<2->{\item{Limited size in a block}}
				\onslide<3->{\item{Miner reward}}
				\onslide<3->{\item{User fees}}
				\onslide<4->{\item{Hash function}}
				\onslide<5->{\item{Difficultly adjustment}}
				\onslide<6->{\item{Application-specific integrated circuit (ASIC)}}
			\end{itemize}
		\end{column}
		\begin{column}{0.5\textwidth}
			\centering
			\includegraphics[width=\textwidth]{Chapter_III/figures/Cryptocurrency_Mining_Farm.jpg}
		\end{column}
	\end{columns}
\end{frame}
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
\begin{frame}{Background: Flaring}
	\Large \textbf{Why is natural gas flared?}
	\large
	\begin{columns}
		\begin{column}{0.5\textwidth}
			\begin{itemize}
				\onslide<2->{\item{Natural gas is always produced with oil}}
				\onslide<3->{\item{Gas oil ratio (GOR)}}
				\onslide<4->{\item{Expensive pipelines required to move the gas}}
				\onslide<5->{\item{Flaring is cheaper in new or remote fields}}
			\end{itemize}
			\onslide<6->{Bitcoin miners have a mobile demand for low cost energy sources.}

		\end{column}
		\begin{column}{0.5\textwidth}
			\centering
\only<1-5>{
	\includegraphics[width=\textwidth]{Chapter_III/figures/FALRING.png}
	North Dakota flared gas \citep{dalrympleNorthDakotaNatural2018}
}
\only<6>{	\includegraphics[width=\textwidth]{Chapter_III/figures/BTC_MINER_FLARED.png}
	Crusoe Energy Bitcoin miner \citep{robertson2021}
}

		\end{column}
	\end{columns}

\end{frame}
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
\subsection{Data}
\begin{frame}{Data}
	\begin{columns}
		\begin{column}{0.33\textwidth}
			\textbf{Enverus}
			\begin{itemize}
				\item{Well location}
				\item{Well attributes}
				\item{Oil and gas production}
			\end{itemize}
		\end{column}
		\begin{column}{0.33\textwidth}
			\textbf{Bitcoin Data}
			\begin{itemize}
				\item{Block difficulty}
				\item{Blocks added}
				\item{Bitcoin price}
			\end{itemize}
		\end{column}
		\begin{column}{0.33\textwidth}
			\textbf{Other Data}
			\begin{itemize}
				\item{Oil price}
				\item{Natural gas price}
				\item{Industrial index}
				\item{Temperature}
			\end{itemize}
		\end{column}
	\end{columns}
	\vfill
	Volume of oil and gas produced by a well is discounted to the date it was drilled \citep{anderson2018}.
\end{frame}
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
\subsection{Econometrics}
\begin{frame}{Econometrics}
\Large	Three econometric results.
\large
	\begin{enumerate}
		\onslide<1->{\item{Structural vector autoregression: Elasticity of oil production}}
		\onslide<2->{\item{Fixed effect model of flared gas: Total subsidy from selling flared gas}}
		\onslide<3->{\item{Nonlinear Cointegrating Autoregressive Distributed Lag Mode (NARDL): Effect of bitcoin price shocks}}
	\end{enumerate}
\end{frame}
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
\subsection{Structural vector autoregression}
\begin{frame}{Information flow in oil markets}
\begin{figure}
	\includegraphics[width=\textwidth]{Chapter_III/figures/timeline.png}
\end{figure}
\onslide<2->{Restriction that drilling rates do not respond to price shocks within the same month \citep{kilian2009}. It takes time to acquire drilling rig contracts, licenses, and create engineering plans}
\end{frame}
%%%%%%%%%%%%%%%%%%%%
\begin{frame}{A matrix restrictions of the SVAR model}
	\small
	\begin{equation*}
	  \begin{pmatrix}
		  e^{\Delta BTU}_t\\
		e^{\Delta \theta}_t\\
		e^{\Delta D_{i}}_t\\
		e^{\Delta P_{g}}_t\\
		e^{\Delta P_{o}}_t
	  \end{pmatrix}=
	\begin{bmatrix} 
	1 & 0 & 0 & 0 & 0 \\ 
	0 & 1 & 0 & 0 & 0 \\ 
	a_{3,1} & a_{3,2} & 1 & 0 & 0 \\ 
	a_{4,1} & a_{4,2} & a_{4,3} & 1 & 0 \\ 
	a_{5,1} & a_{5,2} & a_{5,1} & a_{5,1} & 1 \\ 
	\end{bmatrix}
	  \begin{pmatrix}
	\epsilon_{q}\\
	\epsilon_{\theta}\\
	\epsilon_{D_{i}}\\
	\epsilon_{g}\\
	\epsilon_{o}
	  \end{pmatrix}
	  \begin{matrix}
		  \text{Joint Supply Shock}\\
		  \text{Composition Shock}\\
		  \text{Industrial Demand Shock}\\
		  \text{Gas Specific Demand Shock}\\
		  \text{Oil Specific Demand Shock}\\
	  \end{matrix}
	\end{equation*}
\end{frame}
%%%%%%%%%%%%%%%%%%%%
\begin{frame}{Key impulse response from industrial shock}
	\begin{columns}
		\begin{column}{0.45\textwidth}
	\small
			\includegraphics[width=\textwidth]{Chapter_III/figures/IRF_BTU.pdf}
			IRF on energy production 
			\includegraphics[width=\textwidth]{Chapter_III/figures/IRF_IND}
			IRF on industrial demand
		\end{column}
		\begin{column}{0.45\textwidth}
	\small
			\includegraphics[width=\textwidth]{Chapter_III/figures/IRF_WTI}
			IRF on oil price
			\includegraphics[width=\textwidth]{Chapter_III/figures/IRF_HH}
			IRF on natural gas price
		\end{column}
	\end{columns}
\end{frame}
%%%%%%%%%%%%%%%%%%%%
\begin{frame}{Elasticity estimate}
\onslide<1->{\begin{equation*}
	Elasticity_{S}=\sum_{t=0}^{t}\left(\frac{\Delta \theta_{t} \cdot \Delta q_{t}}{\Delta P_{oil,t}}\right)
\end{equation*}
}
\newline
\onslide<2>{\begin{equation*}
	0.55=\sum_{t=0}^{120}\left(\frac{\Delta \theta_{t} \cdot \Delta q_{t}}{\Delta P_{oil,t}}\right)
\end{equation*}}
\end{frame}