The mining of bitcoin (using computers to run intense math programs) depends on electricity - lots of it. Flared natural gas is “natural” to be put to work running a generator to produce on-site electricity at oil and gas well locations. This has already begun. Here’s one (among many) article on the matter from Engineer Live:
A very interesting question can (and I bet will) come of this… how will the royalty owner make sure he gets paid from the value generated from this?
Here’s a quick pic:
I am not an attorney…opinion only.
Will start the discussion. Many of the leases that I received from an operator in OK have a clause something similar to this: “Lessee shall have free use of oil, gas and water from said land, except water from surface owner(s) wells, tanks, creeks, rivers, streams and springs, for all operations hereunder, provided that no surface water or underground fresh water will be used for water flood or pressure maintenance purposes.” At a NARO presentation many years ago at a conference, the speaker noted that the rigs and frac generators in their area were switching from only diesel to flex fuel using methane. Mineral owners’ methane was being used to generate electricity for running the flex fuel generators and onsite generators. Drill one well for gas and use some for production and some for power generation for the next wells that were drilled nearby but on the lease. In one case, the spare electricity was being sold back to the grid. The operators were getting credit, but the mineral owner was NOT getting paid if they had this type of clause in their lease. A few years later, I was listening to some vendors that were attending OTC and they were also reporting on these new motors and how they were using lease gas. I took the clause out of my lease so that in any future leases, no one could use my oil, gas or water without paying me. Suggest you check with your own attorneys about any clause like this type.
I don’t see the computers you are talking about!
Inside the shipping container…
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