The article analyzes the current state and prospects of associated petroleum gas (APG) utilization, the main components of which are methane and other low-molecular-weight alkanes. When separated from crude oil, APG contains such hydrocarbons as ethane, propane, butane and pentane, as well as water vapor, hydrogen sulfide (H2S), carbon dioxide (CO2), nitrogen (N2) and other components. Associated petroleum gas containing such impurities cannot be used without purification. The authors noted that, the shortage of APG processing capacities both in the Russian Federation and in the world as one of the reasons for the high level of gas flaring at the oil fields. Rational methods of associated petroleum gas utilization, which depend on oil production conditions, such as field characteristics, oil/gas ratio (gas-oil factor), as well as market opportunities for the recovered gas, were identified. An algorithm was proposed for choosing a technology for the rational utilization of APG in oil and gas companies. An overview of all APG utilization methods is given, in which the main attention is paid to unit costs, economic benefits and the nature of the environmental impact. The innovative experience of the effective use of APG in the USA and Canada is analyzed. Particular attention is paid to the need to solve the problem of effective use of APG in the world, especially to reduce the flaring volume. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.