The oxidation of ethane to ethanol and methanol has been studied at 34 atm. The best result obtained was the total alcohol selectivity of 57% at ethane conversion of 6.2%. The liquid collected contained 37% of methanol and 17% of ethanol. The effect of reaction variables on product distribution and alcohol selectivity and the effect of pre-heater have been examined. The selectivity for ethanol was particularly sensitive to reaction parameters, while the selectivity of methanol formation of 25-30% has been found for wide range of reaction conditions. At high temperatures the transition to oxidative coupling of ethane with n-butane formation as the major product (selectivity up to 33%) was observed. Due to the formation of alcohols and butane the process studied has the potential for the production of octane enhancers such as MTBE and ETBE.