scholarly journals Does the fossil fuel divestment movement impact new oil and gas fundraising?

2020 ◽  
Author(s):  
Theodor F Cojoianu ◽  
Francisco Ascui ◽  
Gordon L Clark ◽  
Andreas G F Hoepner ◽  
Dariusz Wójcik
Keyword(s):  
Capital Flows ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Oil And Gas ◽  
Policy Regimes ◽  
Unintended Effect ◽  
Bond Underwriting ◽  
Domestic Banks ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Abstract This article explores whether increasing fossil fuel divestment commitments are related to the reduction of capital flows into the oil and gas sector, based on an analysis of syndicated lending, equity and bond underwriting across 33 countries from 2000 to 2015. We find that increasing oil and gas divestment pledges in a country are associated with lower capital flows to domestic oil and gas companies. This effect is enhanced in more stringent environmental policy regimes and diminished in countries which heavily subsidise fossil fuels. However, the divestment movement may have an unintended effect, insofar as domestic banks situated in countries with high divestment commitments and stringent environmental policies provide more finance to oil and gas companies abroad. We explain these findings through the lens of institutional theory and show how both regulatory and socially normative elements of institutions shape this dynamic.

scholarly journals DETERMINATION OF THE SUSTAINABILITY OF THE PROJECT PORTFOLIO OF THE OIL AND GAS SECTOR OF THE ECONOMY TO EXTERNAL FACTORS

2021 ◽  
pp. 32-40
Author(s):  
L.S. Leontieva ◽  
◽  
E.B. Makarova ◽  
Keyword(s):  
Oil Recovery ◽  
Portfolio Management ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
External Factors ◽  
Project Portfolio ◽  
Project Portfolio Management ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

The oil and gas sector of the economy in many states remains the main source of foreign exchange and tax revenues to the budget. Moreover, its share, for example, in Russia, accounts for about 12 % of all industrial production. However, this sector, as the practice of world oil prices shows, is experiencing not only a rise, but also a decline. Consequently, the problem of forming a balanced portfolio of oil and gas assets is an object of close attention on the part of national oil and gas companies. The issues of choosing the optimal combination of oil and gas assets in the portfolio are no less urgent, especially among the tasks that all oil and gas companies face, both in Russia and abroad. An investment portfolio or a portfolio of oil and gas assets, which includes new projects for the commissioning of fields, as well as measures to enhance oil recovery, and exploration are objects of real investment. The high volatility of the oil and gas industry is influenced by various factors, including: macroeconomic, innovation risks and a number of others. These circumstances stimulate the sector to increase the resilience of its project portfolios in order to respond flexibly to changes. In an increasingly challenging and uncertain environment, oil and gas companies around the world face constant pressures as difficult strategic decisions and building long-term plans lead to a sustainable portfolio. In order to achieve their goals and maximize profitability, companies should apply certain algorithms in their practice. The article substantiates the role and importance of project portfolio management in achieving the goals of the state and companies in the oil and gas sector. The main goal of the article is to build an algorithm that is aimed both at determining the stability of the portfolio and the ability to flexibly respond to changes in the environment. The scientific novelty of the research lies in the determination of an algorithm for assessing the sustainability of a portfolio of projects of oil and gas companies. Application of this algorithm will allow oil and gas companies to take into account the influence of external factors. The research methodology is based on such methods as analysis of internal regulations and reporting of companies for project portfolio management, risk analysis, project ranking; grouping and classification method.

FEATURES OF THE FORMATION OF AN INVESTMENT PORTFOLIO BY RUSSIAN COMPANIES IN THE OIL AND GAS SECTOR OF THE ECONOMY

2021 ◽  
Vol 1 (175) ◽  
pp. 161-166
Author(s):  
V.A. Agusev ◽  
Keyword(s):  
Oil And Gas ◽  
Investment Portfolio ◽  
Investment Projects ◽  
Foreign Companies ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

The article discusses the main methods of forming an investment portfolio and examines the motives for partnerships with foreign companies. During the analysis of the activities of Russian oil and gas companies, the features of the formation of investment projects were revealed.

The rise of shareholder activism—what you need to know

2015 ◽  
Vol 55 (2) ◽  
pp. 448
Author(s):  
Mark Malinas
Keyword(s):  
Oil And Gas ◽  
Shareholder Activism ◽  
Share Price ◽  
Strategic Direction ◽  
The Us ◽  
Dramatic Rise ◽  
Under Performing ◽  
And Performance ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

The past few years have seen a dramatic rise in shareholder activism in Europe and the US and it is a trend becoming more common in Australia. Companies operating in the oil and gas sector have been subject to particular attention and there are a growing number of examples of this in Australia. The targets of shareholder activism range in size and performance, but are often companies with perceived board weakness, those that are considered to adhere to outdated corporate governance, those whose strategic direction is in question or those that have an under-performing share price, though other factors can also be relevant. Using these issues or concerns as a pretext, activists are increasingly focused on using tactics that allow them to exert control or exercise influence to realise returns or agitate for change in companies that: have significant assets (such as oil and gas reserves) relative to their market value; have high costs, large capital expenditures and long revenue generation lead time (such as exploration projects); or, operate in low growth or fluctuating markets (such as with the price of oil and gas). Unsurprisingly, the oil and gas sector is being increasingly seen by certain funds and investors as fertile ground for shareholder activism. The Australian legal landscape also presents shareholders with a platform from which to exert influence. For instance: shareholders are able to requisition general meetings (and resolutions to be put to those meetings) if they hold sufficient shares and put the entire board up for re-election following the introduction of the two strikes rule; and, directors are required to adhere to statutory and common law duties in responding to shareholders. Shareholder activist campaigns are often played out in public and can be highly disruptive to companies’ operations. Accordingly, directors and senior management of oil and gas companies should be aware of shareholder activism in Australia and, in the broader interests of all shareholders and their company, consider how they should respond or be ready to respond. This may be done through various processes, including testing the company’s perceived weaknesses and addressing them and having a plan to address activism should it arise.

Comparative analysis of the efficiency of oil–producing companies in Russia and the world

2020 ◽  
Author(s):  
Arina E. Link ◽  
◽  
Mikhail V. Mishenin ◽  
Keyword(s):  
Comparative Analysis ◽  
Oil And Gas ◽  
Distinctive Features ◽  
Foreign Companies ◽  
The World ◽  
Tax Deductions ◽  
Cost Of Production ◽  
Oil And Gas Companies ◽  
First Time ◽  
Oil And Gas Sector

The study compares domestic and foreign companies in the oil and gas sector for the first time and identifies the distinctive features of each group. The results of calculations showed that the profit of any large oil and gas company is affected by revenue, cost of production and the amount of tax deductions. Moreover, the refinancing rate of the country where the company is registered is important for the activities of oil and gas companies.

scholarly journals TAX RISKS IN THE OIL AND GAS SECTOR OF THE RUSSIAN ECONOMY 

2019 ◽  
Author(s):  
А.Х. Цакаев ◽  
А.Р. Батукаева
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Consolidated Financial Statements ◽  
Financial Reporting Standards ◽  
Russian Economy ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Представлены результаты оценки налогового риска ПАО НК Роснефть , ПАО Газпром и ПАО ЛУКОЙЛ согласно общедоступным критериям самостоятельной оценки рисков для налогоплательщиков Концепции планирования выездных налоговых проверок, исходя из данных консолидированной финансовой отчетности, подготовленной в соответствии с международными стандартами финансовой отчетности, позволившие сделать вывод о предложении по преобразованию данной Концепции под международные стандарты финансовой отчетности. Сформулированы предложения по обеспечению снижения уровня налоговых рисков в деятельности российских нефтегазовых компаний Results of assessment of tax risk of PJSC Rosneft, PJSC Gazprom and PJSC Lukoil according to public criteria of independent risk assessment for taxpayers of the Concept of planning of exit tax audits, proceeding from data of the consolidated financial statements prepared according to International Financial Reporting Standards, allowed to draw a conclusion on the offer on transformation of this Concept under International Financial Reporting Standards are presented. Offers on ensuring decrease in level of tax risks in activity of the Russian oil and gas companies are formulated.

scholarly journals Desenvolvimento de Framework para elaboração de rankings e análises dos relatórios de sustentabilidade de companhias integradas de óleo e de gás com abordagem no GRI

ForScience ◽  
2019 ◽  
Vol 7 (2) ◽  
Author(s):  
Ary Branco Adurens Júnior ◽  
Eduardo Christiano Cecone ◽  
Chang Chung Wei ◽  
Fernando Gasi ◽  
Douglas Alves Cassiano
Keyword(s):  
Oil And Gas ◽  
International Organization ◽  
Gaseous Emissions ◽  
Information Analysis ◽  
Emission Data ◽  
European Origin ◽  
Data Presentation ◽  
Sustainability Reports ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

O Global Report Initiative (GRI) é uma organização internacional, sem fins lucrativos, que disponibiliza dados de emissões e diretrizes para elaboração de relatórios de impacto na sustentabilidade em diversos segmentos industriais, como o setor de óleo e de gás. Entretanto, limita-se à disponibilização dos dados, não procedendo outras análises, no sentido de produzir informações mais elaboradas, como por exemplo, o estabelecimento de benchmarks. Neste sentido, o presente trabalho propõe um framework, visando a organizar as informações na elaboração de rankings das companhias integradas de óleo e gás, verificando-se as relações existentes entre informações de produção e emissões de gases, utilizando uma correlação produto-momento. Como resultado específico, obtiveram-se rankings relativos à produção e indicadores de emissões das companhias integradas de óleo e gás. Infere-se do estudo que as empresas deste segmento energético mais produtivas também são as que mais provocam emissões, e também que, empresas de origem europeia apresentam tendência a produzirem menos emissões que empresas originárias de outras partes do mundo. Com a análise das informações decorrentes do ranking obtido da aplicação do framework proposto, há a possibilidade de as empresas integradas do segmento de óleo e gás planejarem de forma mais assertiva suas atividades, no que tange a um posicionamento sustentável por parte delas.Palavras-chave: Emissões gasosas; Companhias integradas de óleo e gás; Ranqueamento. Global Report Initiative.Framework development for ranking elaboration and analysis of integrated oil and gas companies sustainability reports with GRI approachAbstractThe Global Report Initiative (GRI) is an international organization, non-profitable, that provides emission data and elaboration guidelines of sustainability reports for various industrial segments, such as the oil and gas sector. However, its limited to data presentation without any further analyzes being carried out aiming the production of more elaborated information as benchmark establishment. Therefore, in the present work, a own framework was proposed to organize the information in the elaboration of rankings of the integrated companies of oil and gas, verifying the existing relations between the production information and emissions of gases using a product-moment correlation. As a result, production and emission indicator rankings of integrated oil and gas companies were obtained. It is inferred from the study that the most productive companies in this energy segment are also the ones that cause the most emissions, and that companies of European origin tend to produce less emissions than companies from other countries. With the information analysis derived from the ranking obtained from the application of the proposed framework, it is possible for integrated oil and gas companies to more assertively plan their activities, aiming at their sustainable positioning.Keywords: Gaseous emissions. Integrated oil and gas companies. Rankings. Global Report Initiative.

scholarly journals Trends in fossil fuel extraction

2021 ◽  
Author(s):  
Ploy Achakulwisut ◽  
Peter Erickson
Keyword(s):  
Climate Change ◽  
Fossil Fuels ◽  
Fossil Fuel ◽  
Oil And Gas ◽  
Ghg Emissions ◽  
Vice President ◽  
The United States ◽  
Gas Production ◽  
Fuel Production ◽  
Phase Out

At present, most global GHG emissions – over 75% – are from fossil fuels. By necessity, reaching net zero emissions therefore requires dramatic reductions in fossil fuel demand and supply. Though fossil fuels have not been explicitly addressed by the UN Framework on Climate Change, a conversation has emerged about possible “supply-side” agreements on fossil fuels and climate change. For example, a number of countries, including Denmark, France, and New Zealand, have started taking measures to phase out their oil and gas production. In the United States, President Joe Biden has put a pause on new oil and gas leasing on federal lands and waters, while Vice President Kamala Harris has previously proposed a “first-ever global negotiation of the cooperative managed decline of fossil fuel production”. This paper aims to contribute to this emerging discussion. The authors present a simple analysis on where fossil fuel extraction has happened historically, and where it will continue to occur and expand if current economic trends continue without new policy interventions. By employing some simple scenario analysis, the authors also demonstrate how the phase-out of fossil fuel production is likely to be inequitable among countries, if not actively and internationally managed.

scholarly journals The use of revenue-based multipliers for the appraisal of oil and gas companies

2020 ◽  
Vol 25 (4) ◽  
pp. 387-415
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Comparative Approach ◽  
Related Factor ◽  
Corporate Value ◽  
Market Capitalization ◽  
Debt Burden ◽  
Significant Difference ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

Subject. The article focuses on ratios of the market capitalization and corporate value to revenue of the twenty five leading public companies in the oil and gas sector within 2008 through 2018. Objectives. The study is to trace key trends in ratios of corporations in the oil and gas. I also determine what caused such a transformation for the analyzable period and whether the multipliers are applicable to appraise the corporate value in the oil and gas sector. Methods. The study is based on methods of comparative and financial-economic analysis, summarizing financial reporting data. Results. Revenue-based ratios are found to be applicable to appraise the value of oil and gas companies. Although having the similar composition of net revenue, companies with better profitability have higher multipliers. Integrated corporations were found to have lower multipliers than independent companies. The study shows that the import-based petrochemical production tends to have the lower value than that using domestic resources. The multiplier goes down if the company's revenue includes proceeds from the resale. As the debt burden grows, the multiplier decreases. Therefore, considering the significant difference in the debt burden, the multiplier should better include the corporate value instead of the market capitalization, since the corporate value comprises the net debt. I also discovered the country-related factor, which should be taken into consideration when using the multiplier. Conclusions and Relevance. The use of revenue-based multipliers requires the thorough analysis of the financial and business operations of companies. However, it is quite acceptable when the overall profitability decreases and the debt burden increases in the public segments of the global oil and gas industry. The findings can be used to appraise the value of oil and gas assets as part of the comparative approach and decide on actions for raising the market capitalization of public oil and gas corporations.

Piercing the corporate veil: Towards a better assessment of the position of transnational oil and gas companies in the global carbon budget

2019 ◽  
Vol 6 (3) ◽  
pp. 243-262 ◽  
Author(s):  
Pierre-Louis Choquet
Keyword(s):  
Carbon Capture ◽  
Carbon Budget ◽  
Social Dynamics ◽  
Fossil Fuel ◽  
Oil And Gas ◽  
Climate Science ◽  
Firm Level ◽  
Global Carbon Budget ◽  
Oil And Gas Companies ◽  
Global Carbon

In recent years, research in climate science has increasingly emphasized the need to reduce fossil fuel supply in order to avoid an overshoot of the global carbon budget and to meet the Paris Agreement target to keep global warming ‘well below 2°C’. This article aims to outline a balanced appreciation of the particular responsibility held by transnational oil and gas companies in the global challenge to organize an equitably managed decline in fossil fuel extraction. It does so by focusing on a case study. The latter consists of the stylized reconstruction of the internal social dynamics that shape the power structure of the French firm Total and of questioning its ability to make investment decisions aligned with the imperative to preserve the stability of the climate system, as its public position makes clear. The persistence of short-termed compensation schemes in the higher corporate hierarchy impedes the elaboration and implementation of deep decarbonization strategies at the firm level. These would imply a significant upscaling of investments in renewable energy and/or carbon-capture storage technologies, in order to avoid the foreseeable destruction of corporate jobs linked to oil and gas extraction in an increasingly carbon-constrained world.

From hydrocarbons to electrons: creating new opportunities for the oil and gas sector

2018 ◽  
Vol 58 (2) ◽  
pp. 529
Author(s):  
Bernadette Cullinane ◽  
Michael Wood ◽  
Barry Ladbrook
Keyword(s):  
Business Models ◽  
Oil And Gas ◽  
Greenhouse Gas Emission ◽  
Renewable Energy Sources ◽  
Operational Performance ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil And Gas Sector ◽  
Rapid Emergence ◽  
Lower Carbon

Today’s energy and resources companies must address many challenges to their traditional business models including the rapid emergence of available and economic renewable energy sources, ever tightening greenhouse gas emission policies and increased stakeholder expectations around transparency. While there is uncertainty regarding the impact of these developments, enormous opportunity exists for companies to forge pathways to a decarbonised future while at the same time creating new markets, products and services and increasing revenues. Several leading Australian resources companies have recently embarked on programs to transition to a lower carbon and more diversified energy portfolio. These initiatives focus on integrating alternative forms of energy across value chains, making energy consumers central to their business models and increasing energy security for their companies and the country. This paper discusses the drivers underlying these challenges, draws on case studies of how oil and gas companies are managing their journey, considers the impact such programs on the companies’ financial and operational performance and outline some implications and possible approaches.

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