In the face of the escalating global energy demand, the challenge lies in enhancing the extraction of oil from low-pressure underground reservoirs. The conventional artificial gas lift method is constrained by the limited availability of high-pressure gas for injection, which is essential for reducing hydrostatic bottom hole pressure and facilitating fluid transfer to the surface. This study proposes a novel ‘smart gas’ concept, which involves injecting a gas mixture with an optimized fraction of CO2 and N2 into each well. The research introduces a dual optimization strategy that not only determines the optimal gas composition but also allocates the limited available gas among wells to achieve multiple objectives. An extensive optimization process was conducted to identify the optimal gas injection rate for each well, considering the limited gas supply. The study examined the impact of reducing available gas from 20 to 10 MMSCFD and the implications of water production restrictions on oil recovery. The introduction of smart gas resulted in a 3.1% increase in overall oil production compared to using natural gas. The optimization of smart gas allocation proved effective in mitigating the decline in oil production, with a 25% reduction in gas supply leading to only a 10% decrease in oil output, and a 33% reduction resulting in a 26.8% decrease. The study demonstrates that the smart gas approach can significantly enhance oil production efficiency in low-pressure reservoirs, even with a substantial reduction in gas supply. It also shows that imposing water production limits has a minimal impact on oil production, highlighting the potential of smart gas in achieving environmentally sustainable oil extraction. Furthermore, the implementation of the smart gas approach aligns with global environmental goals by potentially reducing greenhouse gas emissions, thereby contributing to the broader objective of environmental sustainability in the energy sector.