A method for preparing oxygenated hydrocarbons includes steps of: reacting a first heated hydrocarbon-containing gas stream with an oxygen-containing gas stream in a reactor for form a first product blend, recovering the energy generated in the reactor in order to preheat incoming hydrocarbon feed to the reactor and/or to drive endothermic reactions that generate synthesis gas, separating and condensing one or more liquid oxygenated hydrocarbons from the product stream, separating a reject stream from a recycle stream, mixing remaining gaseous hydrocarbon product from the recycle stream with the first hydrocarbon-containing gas stream after one reaction cycle, converting the first reject stream to a synthesis gas mixture, and converting the synthesis gas mixture to light alkanes to be blended with one or with oxygenates in an output stream to optionally form higher molecular weight oxygenates.