For a long time, oil producers have simply flared this unwanted oil by-product. But because of the increase in both environmental consciousness and energy demand, flaring is often avoided and is sometimes prohibited.
Technically, several options exist for handling associated gas.
Conversion to petrochemical industry feedstock
Gas reinjection for later recovery
Generation of electricity for transmission or on-site needs
Preparing it as a fuel in various forms (i.e. dried pipeline gas, LPG and exporting it via a pipeline)
Processing gas-to-liquids and gas-to-solids
Processing such as LNG or LPG and exporting via tankers