During oil production, associated petroleum gas (APG) is often extracted alongside oil but is sometimes flared due to technical, regulatory, or economic constraints.
This leads to significant methane emissions and CO2 being released into the atmosphere. Russia is the largest flarer of APG globally, despite efforts to reduce flaring through legislative measures. The industry has historically viewed APG as a liability due to the high costs of infrastructure for utilization. However, there are opportunities for new uses of APG such as in bitcoin mining and AI energy-intensive applications. The challenge remains in increasing utilization rates and reducing flaring to meet environmental and economic goals.