How do you actually price oil/energy in #Bitcoin?

We've heard many Bitcoiners talk about pricing oil/energy in BTC. But what does that actually mean?

One options just do a simple conversion of the USD price of to BTC using current exchange rate.

For example the current price per barrel of WTI oil is ~$75, converted to ~107,143 sats per barrel.

But this isn't pricing oil in BTC terms, just accepting #bitcoin for payment.

What happens if we use the opportunity cost of mining bitcoin instead? Warning, assumptions ahead - this is a thought experiment I found interesting and incorrect?

Assumptions:

- 1 Barrel of Oil contains ~1,700 kWH of usable electricity

- Using Bitmain S21. 200TH/s @ 3500 W

One day of running the S21 is 3.5kWh * 24 = 84kW. This lets us run the S21 for ~20.22 days (1,700/84), let's call it 20 days.

Using a mining income calculator our daily income is estimated at ~36,000 sats. (I know I know, assumptions bro)

20 days * 36,000 sats = 720,000sats.

My crude calculations (see the pun?) indicate one barrel of oil should be priced at 720,000 sats (~$500USD) at current block rewards/difficulty.

Energy producers are being screwed by selling oil for USD instead of using it to mine Bitcoin themselves.