Associated Gas (US) | Practical Law

Associated Gas (US) | Practical Law

Associated Gas (US)

Associated Gas (US)

Practical Law Glossary Item w-026-4704 (Approx. 2 pages)

Glossary

Associated Gas (US)

A by-product of oil production, this is natural gas that is found mixed with oil in underground reservoirs or as a gas cap above the oil in a reservoir. An oil and gas producer's treatment and monetization of associated gas depends on:
  • The existence of natural gas pipelines to transport the natural gas to natural gas processing facilities, storage, or customers.
  • Available storage capacity. Natural gas may be stored in underground caverns, aquifers, and natural gas fields.
  • The price and demand for natural gas.
  • Regulations governing the treatment of this gas, including limits on flaring or venting of natural gas.
Associated gas may also be extracted from gas wells, shale, and coal seams.
For more information on associated gas and other sources of natural gas, see Practice Notes, Reserve Based Loans: Issues and Considerations and US Oil & Gas Industry: Overview.