The article contains a detailed consideration of ecological, economic and legislative problems associated with utilization of associated petroleum gas generated during the development of oil fields. Analyzed the experience of the Republic of Kazakhstan in solving this problem for the last decade, provided an evaluation of the current state of the applicable legislative reforms in this sphere. In the operative part of the article there is a set of proposals contributing to the optimal and economically efficient solution of the issues related to the utilization of associated petroleum gas and increasing the effectiveness of cooperation of subsurface users, entrepreneurs and state authorities. \n\nKey words: oil and gas industry, utilization of associated petroleum gas; \n\nRelevancy of the problem: Utilization of associated petroleum gas generated during the development of oil fields is one of the serious ecological and economic problems of the oil and gas industry of the country. For Kazakhstan this problem has an especially global dimension in view of a high gas factor contained in Kazakh oil and gas-condensate fields. This problem correlates with global tendency directed for reduction of associated gas flaring that promoted the creation in 2002 of the Global Partnership on reduction of associated gas volumes, the participants of which were oriented for collaborative work on elimination of barriers that hindered the reduction of associated gas flaring by means of application of the best world experience and implementation of special programs for each country, including Kazakhstan. Unlike many countries of CIS, for Kazakhstan this problem has an especially global dimension in view of a high gas factor contained in Kazakh oil and gas-condensate fields.\n Analyzing this problem, it should be stated, that if for the majority the issues of utilization of associated petroleum gas are connected with negative impact on the environment, in my view, an equally important aspect of this problem is �the waste of nonrenewable energy resources�. Not so long ago the technological process of oil production meant burning flares in which associated petroleum gas was burnt, and all its components of hydrocarbons. Because an associated petroleum gas represents a mixture of gases and vaporous hydrocarbons, that constitute a highly valuable raw material for petroleum chemistry. Moreover, 100% solution of this problem will become a significant contribution in formation of energy security of the country.

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