Oilfield operations generate substantial volumes of associated gas (AG), a significant proportion of which continues to be flared or vented due to limited utilisation infrastructure, resulting in avoidable greenhouse-gas emissions and economic losses. Converting AG into distributed electrical and thermal energy offers a practical pathway for reducing routine flaring while supporting cleaner and more efficient upstream energy systems. This narrative review synthesises current knowledge on the integration, optimisation, and sustainability performance of AG-based distributed power systems, with particular emphasis on microturbines, gas engines, and combined heat-and-power (CHP) configurations. The review examines key system-integration principles, including fuel conditioning, mechanical and thermal coupling, and digital control architectures that enable stable operation under variable AG composition. It further analyses energy-efficiency optimisation strategies such as recuperated microturbines, lean-burn engine operation, and waste-heat recovery, drawing on established thermodynamic and exergy-based frameworks. Evidence from the literature indicates that CHP-enabled AG systems can achieve notable primary-energy savings relative to separate generation, while AG-fuelled distributed power systems demonstrate favourable long-term techno-economic performance in remote and off-grid oilfield settings. Environmental assessments show that AG-to-power pathways exhibit lower lifecycle carbon intensity than diesel- and coal-based alternatives, aligning with international flaring-reduction and decarbonisation objectives. Beyond technical performance, this review situates AG utilisation within a sustainable social development context, highlighting contributions to improved energy access, reduced environmental health risks, enhanced regulatory transparency, and strengthened local value creation in oil-producing regions. Overall, AG-based distributed generation emerges as a viable transitional strategy integrating clean energy production with measurable social and governance outcomes.

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