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Oil and Gas Companies Aiding Cryptocurrency Mining Without Paying Federal Royalty.

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It is reported that according to a report issued by the US government regulatory agency on Wednesday, some oil and gas drilling companies operating on the US p…

Oil and Gas Companies Aiding Cryptocurrency Mining Without Paying Federal Royalty.

It is reported that according to a report issued by the US government regulatory agency on Wednesday, some oil and gas drilling companies operating on the US public land are transferring natural gas to the cryptocurrency mining business without paying the federal royalty. The Office of Inspector General of the Ministry of the Interior recommended that the Department of Homeland Security issue guidance to address the actions of these companies.

US regulatory agency: many oil and gas companies turn to encryption mining business

Analysis based on this information:


A new report issued by the US government regulatory agency shows that some oil and gas drilling companies operating on US public land have been transferring natural gas to the cryptocurrency mining business without paying the federal royalty. This amount to violation of federal laws guiding the royalties paid by oil and gas companies operating on public lands. This report was issued on Wednesday by the Office of Inspector General of the Ministry of Interior.

According to the report, the oil and gas companies drill natural gas and sell them to the cryptocurrency mining companies as a way of compensating for their services of computing services needed for the mining of cryptocurrencies. The companies are supposed to pay federal royalties for any natural resources they get from the land but in this case, that’s not the case; the companies involved didn’t pay a dollar for all the natural resources they got from the US public land.

The report depicts the severity of the problem and spells out the recommendations which include that the Department of Homeland Security issues guidance to address the actions of the oil and gas companies and indicate how cryptocurrency mining businesses may facilitate noncompliant operations on public lands.

The report reveals that the natural gas transferred to the cryptocurrency mining businesses were valued at millions of dollars, and the companies involved robbing the US public land of the money which should have been spent on improving public services. The report also indicates that this illegal act is involving many companies, though the report didn’t name any company involved.

In conclusion, the US regulatory agency must enforce the recommendation given in this report to bring these companies to their kneels and get compensation for the public resources they robbed from them. Cryptocurrency mining businesses must also come out clean and comply with the laws and regulations governing their industry. Noteworthy, the oil and gas companies should pay the federal royalties for all resources they get from the land to support the government in provision of better public services to their citizens.

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