Description: The article is devoted to the problem of associated petroleum gas (APG) flaring. It contains actually data about flaring and utilization APG. APG, which produced in the process of oil production, has a significant negative impact on the environment. On the other hand, APG is a valuable raw material for further processing. The author describes documents of strategic planning in this sphere and characterizes economic mechanisms of stimulation of utilization of APG in Russian Federation. In this paper is revealed of different ways what gas can be utilized: to use for electricity generation, to reinject for enhanced oil recovery, to convert from gas to liquids producing synthetic fuels, to use as feedstock for the petrochemical industry. In conclusion the author proposes key actions to ensure sustainable development in the field of oil production in relation to APG and says that the beneficial use of APG is a tool to promote the sustainable development of oil-producing countries.