Abstract: A Fischer-Tropsch process is provided for synthesizing hydrocarbons, involving multiple Fischer-Tropsch reactor stages (110) arranged in series, and characterized by very low carbon monoxide conversion per Fischer-Tropsch reactor stage (110) and intermediate removal of water between reactor stages (110). In one embodiment, the system utilizes an iron-based catalyst and balances the molar H.sub.2 /CO feed ratio in the synthesis gas (108) with the overall H.sub.2 /CO consumption ratio across all of the Fischer-Tropsch reactor stages (110). In a preferred embodiment, carbon dioxide is recycled from the last in series of the Fischer-Tropsch reactor stages (110) to the synthesis gas generator (106). The system may advantageously utilize a gaseous hydrocarbon feed (102), such as obtained from natural gas, as feed for producing the synthesis gas (108).