Evolution of the mechanisms of formation of prices for associated petroleum gas in the Russian regional markets (based on materials from Western Siberia)

In 1992, several local markets for associated petroleum gas (APG) emerged in Western Siberia, the main oil-producing region of Russia. By their structure, all local markets were monopoly-monopsony. In countries where APG handling evolved with the development of oil production, there were no APG markets and APG handling was part of the oil producer's business. In the absence of an economic theory of the APG market and the ability to organize competition in the market, the state was forced to price APG using an empirical approach. Its use stimulated the demand for development of scientifically grounded theory of APG price setting. The first stage of the new approach was the development and introduction of the price scale based on ensuring the self-sufficiency of APG processing. The evolution of the toolkit developed on the basis of formation of the socially optimal price of APG is considered. The results of calculations of socially optimal APG prices at several local markets are given.