Condition of associated petroleum gas in Russia

Tyumen State University Herald. Social, Economic, and Law Research


2015, Vol. 1. №3(3)

Condition of associated petroleum gas in Russia

About the authors:

Alesya S. Kholodionova, Postgraduate Student, Department of the World Economy and the International Business, Tyumen State University;

Lyudmila M. Simonova, Dr. Sci. (Econ.), Professor, Department of Management and Business, Financial and Economic Institute, University of Tyumen; ORCID: 0000-0003-4858-0940,


Nowadays associated petroleum gas (APG) conservation or use is one of the most topical issues in oil and gas sphere of Russian economy. APG conversation or use rate in developed countries like USA, Canada or Norway is about 99-100%, while in Russia and in countries of Middle-East and Africa a considerable part of it is burned in flares. This article puts stress upon various issues of APG processing. This issue is very topical due to the fact that currently dozens of billions of cubic meters of APG is burned in flares.The article analyzes APG resources of Russia. Basing on the results of this analysis high rates of actual loss were discovered. So, APG can be used as, first and foremost, as a most valuable oil and gas raw material, clean fuel for energy production, and as a motor fuel. Unfortunately, at the moment the rates of APG use are quite low. The major reason for it is its relatively high production cost, which is higher than the said price of natural gas due to high initial expenses for construction of gas processing facilities, transportation and processing, and, additionally, the technological process of APG production is rather complicated.The aforementioned reasons make the use of APG for oil producers uneconomic and loss making, not to mention that on small deposits distant from consumers or having small reserves of APG this processing is not profitable at all. As a result, enormous amounts of APG are burned in flares. And, among other things, APG burning in the Tyumen region is the most important factor that damages environment and health of people.


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