Publications

Associated gas, produced with oil, has frequently been flared or vented because development plans did not justify the incremental investment to recover this energy. However, with energy costs on a Btu basis approximately four times the 1974 value, new investment patterns are emerging in an effort to conserve this energy when planning new projects or revamping existing production facilities. The potential benefit to energy exporting nations and developing countries who use their associated gas is significant. Indeed, a growing number of nations are already benefiting from the domestic consumption of their associated gas supplies. Worldwide recognition of the value of gas, when priced at or near the Btu equivalent of oil, has resulted in national mandates restricting the flaring or venting of associated gas, Many countries are implementing fast-track programs to recover this wasted energy. These programs have proven to be economically justifiable to both the government and producers, even offshore where investment costs are higher than onshore production facilities. The need for the recovery of associated gas becomes increasingly apparent when comparing projected world economic growth rates and energy demand patterns to existing sources of supply. This paper reviews the uses of associated gas, the planning required to conserve this valuable energy for present or future use, the processing schemes, and the economic justification for development.