scholarly journals Impact of the global green factor on the capitalization of oil companies in Russia

2020 ◽  
Vol 11 (2) ◽  
pp. 309-324
Author(s):  
Irina Filimonova ◽  
Anna Komarova ◽  
Mikhail Mishenin
Keyword(s):  
Oil And Gas ◽  
Value Added ◽  
Clean Energy ◽  
Environmental Damage ◽  
Special Focus ◽  
Factors Affecting ◽  
Oil Companies ◽  
Net Profit ◽  
Petroleum Companies ◽  
The Impact

Research background: This paper studies the impact of a new so-called green factor on the capitalization of petroleum companies, which is becoming highly relevant in view of the signing of the Paris agreements in 2015 and the support for clean energy. Although society, international organizations, and government authorities encourage companies to reduce their environmental impact, one of the main reasons for responsible behavior is still economic efficiency. The oil industry, on the one hand, faces one of the most volatile markets and, on the other hand, has one of the largest environmental impacts of any industry. That requires a detailed study of interconnections between market capitalization and the green factor. Purpose of the article: A comprehensive study of factors affecting the level of capitalization of oil and gas companies in Russia and identification of the most significant among them with a special focus on the green factor. Methods: Econometric analysis of panel data for Russian petroleum companies. The database includes indicators for six major Russian oil companies from 2011 to 2018. The following groups of factors are analyzed to explain the change in the companies’ capitalization: macroeconomic (GDP and inflation in Russia), microeconomic (companies’ revenue, net profit, tax payment, return on assets, return on equity, ratio of borrowed capital to equity), industrial (oil export, refining, production and proven reserves of the companies), and the green factor. Findings & Value added: The selection of factors showed that the size of capitalization has been influenced most significantly by the following: the volume of the company's proven reserves, net profit, tax burden, and the green factor based on the policy of minimizing environmental damage. This result shows that investors consider companies with high environmental performance to be more valuable than companies with similar financial results but lower environmental ratings.

scholarly journals How Oil Contracts Affect Human Rights

2018 ◽  
Vol 3 (4) ◽  
pp. 30
Author(s):  
Maria João Mimoso ◽  
Clara da Conceição de Sousa Alves ◽  
Diogo Filipe Dias Gonçalves
Keyword(s):  
Human Rights ◽  
Oil And Gas ◽  
Social Issues ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Oil Companies ◽  
The Social ◽  
Oil Contracts ◽  
The 19Th Century ◽  
The Impact

Since the beginning of the 19th century, we have assisted major proliferation of the oil and gas industry. This phenomenon of exponential growth is due to the fact that oil companies hold the world’s oil monopoly on the extraction, processing and commercialization. Therefore, as being one of the most influential sectors in the world, is crucial to strictly regulate how oil and gas contracts concerns the potential environmental and social impacts arising from the conduct of petroleum operations and how such behavior affects the human rights. As a matter of fact, the social issues field is an emerging area, and despite such importance, oil contracts do not often deal with them in great detail, corresponding to an actual emptiness of the human rights provisions. In terms of responsibly, oil companies, have an inalienable obligation to ensure that their actions do not violate human rights or contribute for their violation. This study aims to trace a detailed analysis of the impact of the oil and gas agreements in human rights. In order to fully comprehend the deep effects of this industry, we will examine, in detail, numerous of published oil and gas agreements, as well as, decode which are the real standards and practices accepted by this industry. We will use a deductive and speculative reasoning. We will try to demonstrate how incipient and short protection is given to human rights and what responsible conducts must urgently be developed.

scholarly journals The impact of globalization on the implementation of green purchasing in companies operating in the forest-based sector

2021 ◽  
Vol 129 ◽  
pp. 07005
Author(s):  
Nikola Slastanova ◽  
Marek Hlodak ◽  
Hubert Palus
Keyword(s):  
Value Added ◽  
Raw Material ◽  
Sustainable Competitive Advantage ◽  
Business Systems ◽  
Product Lines ◽  
Factors Affecting ◽  
Proactive Approach ◽  
Furniture Manufacturing ◽  
Green Purchasing ◽  
The Impact

Research background: The global environment influences the behaviour of companies. This concerns the requirements for increasing number of products, product lines, brands, the need for market segmentation, consumer demand, innovations as well as the behaviour of consumers and suppliers including environmentally appropriate purchasing. The forest-based industries must respond to changes from the perspective of the globalization process by appropriate adaptation and, inter alia, to focus on the introduction of environmentally properly procurement. The integration of green purchasing principles into business systems is increasingly mentioned in the process of globalization of economies in connection with the huge potential for gaining a sustainable competitive advantage. Purpose of the article: The aim of the paper is to identify and analyze the factors affecting the implementation of environmentally friendly purchasing in the companies of forest-based sector in Slovakia. Methods: The reasons for implementing responsible practices in supply chains are based either on the stakeholder theory or the assumption that companies have a more proactive approach to implement sustainable purchasing practices as they are aware of the possible benefits. Using a questionnaire survey the companies operating in all sub-sectors of the forest-based industry - wood, pulp and paper and furniture manufacturing, including their suppliers of wood raw material in Slovakia, were questioned with the aim to identify the reasons for implementing sustainable purchasing practices. Findings & Value added: Data obtained are used to identify the factors that are crucial for the introduction of green purchasing in companies in dependence on the specific company characteristics and conditions of the market environment under which companies operate.

Issues of Environmental Impairment Liability Insurance in the Russian Oil and Gas Industry

2019 ◽  
Vol 2019 (4) ◽  
pp. 160-175
Author(s):  
Anna Popova
Keyword(s):  
Environmental Pollution ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Oil Products ◽  
Nature Management ◽  
Environmental Damage ◽  
Gas Industry ◽  
Oil Companies ◽  
Management Measures ◽  
Expert Assessments

The author studies environmental insurance in nature management as a lever of management measures to prevent and eliminate environmental pollution by oil products during their transportation and oil fields development. The research aims to develop recommendations for environmental risks insurance in Russian oil and gas industry on the basis of economic and mathematical model that allows to estimate the scale of environmental pollution by oil products. Such methods as system and comparative analysis, expert assessments, forecasting, modeling used in this work helped the author to identify Russian environmental insurance features; to propose a method for solving the problem concerning the lack of statistical data on the frequency and scale of accidents and the environmental damage magnitude by mathematical modeling of the accident, which allows to estimate the radius and depth of the underlying surface pollution. These developments will help insurers to make more adequate insurance premiums and tariffs, as well as to improve the underwriting procedure for unique oil and gas projects. But in order for the obtained achievements to find their application, it is necessary to have legislation obliging oil companies to compensate for environmental damage, and due to the scale of such damage, oil companies will be obliged to insure the relevant risks.

Environmental liability and asset retirement obligations

2011 ◽  
Vol 51 (2) ◽  
pp. 697
Author(s):  
Michael Clark ◽  
John Claypool
Keyword(s):  
Oil And Gas ◽  
Operating Conditions ◽  
Federal State ◽  
Operating Life ◽  
Oil Companies ◽  
Oil And Gas Producers ◽  
State And Local ◽  
Well Abandonment ◽  
The Cost ◽  
The Impact

Oil companies, partnerships and entities developed for the exploration and/or production of hydrocarbons typically invest for a reasonably certain period of time, with the assets projected to have little or no value at the end of their life cycle. Historically, production facilities were decommissioned as cost effectively as possible, with limited consideration of the cost of this practice being factored into the initial costs or operating budgets, and the salvage value of the scrap metal was applied to cover the cost of the demolition. Today, most oil and gas producers are required to account for the estimated future cost of dismantling and removing facilities and equipment, as well as restoring land to its previous condition. The estimated costs for future dismantling, removal, and restoration are different to other costs associated with the acquisition and use of productive assets. The impact of potential environmental expenses associated with these practices typically occurs after an asset has ceased production. Planning for environmental costs for asset retirement obligations (AROs) is ideally conducted during the asset's operating life. This is so that compliance costs and other operating expenses are recorded consistently in conformance with accounting policies and regulations. Tentatively identified AROs include: asbestos, batteries, PCB transformers, underground or above ground storage tanks, well abandonment, waste impoundments, mercury, and other components of an active producing facility. Operators need to identify specific performance requirements that may impose obligations on their organisation. Federal, state and local requirements need be considered, as they apply to specific operating conditions.

scholarly journals Carbon intensity of oil and gas production

2021 ◽  
Author(s):  
Omran Al-Kuwari ◽  
Dan Welsby ◽  
Baltazar Solano Rodriguez ◽  
Steve Pye ◽  
Paul Ekins
Keyword(s):  
Climate Policy ◽  
Internal Combustion Engines ◽  
Oil And Gas ◽  
Gas Production ◽  
Carbon Intensity ◽  
Oil Companies ◽  
Climate Targets ◽  
Future Production ◽  
The Impact ◽  
Oil And Gas Sector

Abstract This report focuses on reviewing the types of carbon intensity metrics, and the use of such metrics across the oil and gas sector, to monitor progress towards transitioning away from fossil fuel production. Producers are under pressure to respond to challenging conditions resulting from increasing climate policy, tightening markets and a move away by investors. A number of commentators are suggesting that production may have peaked, given these emerging trends, and the ongoing Covid-19 pandemic.From a combination of review and modelling, this report provides some key insights on carbon intensity metrics and the impact of different carbon intensities on future production, which are pertinent to the future strategies of the oil and gas sector -·Narrow-scoped metrics that only include upstream emissions are insufficient for producers reporting on progress towards climate goals. The carbon intensity of the final product also needs to be considered, given that it is increasingly subject to increased demand-side policy e.g. in relation to carbon pricing, bans on the sale of internal combustion engines (ICEs) etc.·Given that climate targets are expressed in absolute terms, the relative measure of progress provided by carbon intensity metrics is insufficient to guide progress towards net-zero emissions. As shown by the modelling, there is a significant decline in the levels of production permitted under climate targets by 2050. ·Given the need for diversification, metrics that account for scope 3 emissions will be important, to help monitor the transformation away from oil and gas. As discussed in this report, a number of IOCs appear to be making small steps in this direction, although their key business focus very much remains on oil & gas. As the IEA (2020a) has reported, less than 1% of capital expenditure is being spent outside of core business areas.·However, cleaner operations are also important. Therefore, scope 1&2 metrics are still useful for minimising upstream emissions. The modelling highlights the impact for example of high carbon intensity gas resources (due to methane emissions) on their production levels. Unconventional resources, which tend to require more energy input per unit of extraction, and are more costly, appear unlikely to be exploited in our Paris-aligned case.·Any assertion that higher carbon intensity production upstream can be offset by lower emissions downstream (e.g. via higher vehicle efficiency standards) is not supported by the modelling. This is particularly the case where these oil products are exported abroad to regions with low efficiency forms of transportation/limited environmental regulation.·National oil companies (NOCs) have more potential to achieve emission reduction from operational emissions, although the incentives to do so might be lower (with far less scrutiny and reporting). Diversification is also likely to be more of a challenge for NOCs, due to the reliance of public budgets on revenues gained. However, a number of high-producing countries are vigorously exploring diversification strategies. Such strategies could include massively increasing support for renewable industries, and focusing on areas such as hydrogen production and CCS applications.·For the large NOC producers, with the lowest-cost conventional reserves, it is likely that they may be able to continue producing for the longest time, as climate policy stringency increases. However, given that NOCs hold the largest reserves, risks of stranding will be greater in absolute terms.

scholarly journals Analysis of the Problem of Environmental Pollution in Oil Fields, as Well as Ways of Utilization of Oil Production Waste

2021 ◽  
Vol 315 ◽  
pp. 01002
Author(s):  
Vitaly Zhironkin ◽  
Michal Cehlar
Keyword(s):  
Oil And Gas ◽  
Oil Production ◽  
Oil Sludge ◽  
Hydrocarbon Production ◽  
Oil Companies ◽  
Advantages And Disadvantages ◽  
Sources Of Pollution ◽  
Oil And Gas Fields ◽  
Oil And Gas Resources ◽  
The Impact

The problems of the current ecological situation in the oil-producing regions are being investigated. The analysis of the impact of the growth of hydrocarbon production on the environment has been carried out. The main causes and sources of pollution have been identified, starting with the process of developing oil and gas fields and including directly extracting and processing oil and gas resources. It is noted that the main reason for the growing environmental hazard is the deterioration and depreciation of equipment and the low share of innovative activity of oil companies. The main methods of utilization of oil production wastes, which are currently used in world practice, have been analyzed. Some technologies for processing oil sludge with obtaining a secondary product are considered. Their main advantages and disadvantages associated with the features of the technological process are described. The possibility of obtaining inert soil, building material, expanded clay and other materials using drill cuttings has been evaluated. The complex separate processing of drilling waste has been determined as the most effective and promising. Its main advantages associated with the complete utilization of all components of oil sludge, as well as the problems of introducing this technology, are given.

Market attractiveness of oil and gas companies as a factor affecting the socio-economic development in regions of their business operations

2021 ◽  
Vol 20 (1) ◽  
pp. 124-141
Author(s):  
Sergei G. MARICHEV
Keyword(s):  
Economic Development ◽  
Oil And Gas ◽  
Global Market ◽  
Market Capitalization ◽  
Oil Refineries ◽  
Oil Companies ◽  
Socio Economic Development ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil Company

Subject. I address the impact of market capitalization of oil and gas companies on their contribution to the socio-economic development of regions of presence. Objectives. The purpose is to determine to what extent the factor of high market capitalization of the oil company is crucial in the changing the market environment. Methods. The study draws on methods of economic and statistical analysis. Results. I considered the current state of the Russian oil industry in the context of tax maneuver, and the future evolution of the oil and gas sector from the perspective of government authorities’ desire to develop oil refineries. I performed the financial analysis of operations of two large regional oil companies, namely, Bashneft and Tatneft, examined their contribution to the regions of presence in accordance with the level of market capitalization and ownership structure. The paper highlights the key factors, influencing the contribution of companies to the socio-economic development of regions. Conclusions. In addition to the unfavorable global market conditions, changes in the taxation of oil companies in Russia in the form of tax maneuver are the additive factors that negatively affect the profitability of the industry as a whole. The growth of oil companies’ capitalization has a positive impact on their contribution to the development of regions of presence, depending on the specifics of equity structure. In the face of adverse external factors, the influence of high market capitalization of the oil company reduces drastically due to cumulative decline in business profitability.

Statistical Analyses of Solo and Joint Bids for Federal Offshore Oil and Gas Leases

1978 ◽  
Vol 18 (02) ◽  
pp. 87-95 ◽  
Author(s):  
Elmer L. Dougherty ◽  
John Lohrenz
Keyword(s):  
Oil And Gas ◽  
British Petroleum ◽  
Outer Continental Shelf ◽  
Oil Companies ◽  
The Government ◽  
Offshore Oil And Gas ◽  
Definition Of ◽  
Offshore Oil ◽  
The Impact ◽  
The U.S

Abstract This study of Outer Continental Shelf (OCS) bid data, plus a critical analysis of other such studies, was made to determine the impact of joint bidding on competitiveness of OCS lease sales, It concludes that no class of joint bids has been shown to reduce the level of competition. Banning joint bidding by two or more major oil companies did result in an abrupt increase in the number of pint bids that included one major. Introduction Sealed, competitive bids for U.S. offshore oil and gas leases are classed as either solo or joint bids. Solo bids are submitted by one bidder with 100-percent ownership. Joint bids are submitted by several bidders who divide ownership among themselves. The pragmatic question that triggered this study was, "Is there a kind of solo or joint bid whose occurrence tends to decrease the number of sealed, competitive bids?" Such a bid would lower the level of competition. This study reports the results of a statistical analysis to measure the impact of joint bidding on the level of competition in sales of U.S. oil and gas leases. The study first presumed that the level of competition increases as the number of competing bids increases. This presumption while not unassailable, also was not unreasonable. Three previous studies of solo and joint bidding were reviewed first, revealing that conclusions drawn by two of the studies are statistically unsupported. Our study of the pragmatic question found no consistent correlation supporting a positive answer to the question. The U.S. policy regulation proscribing joint bids involving two or more majors tended to broaden the proportion and number of bids involving majors. REVIEW OF PREVIOUS STUDIES OF FEDERAL OFFSHORE SOLO AND JOINT BIDS Joint bidding for U.S. offshore oil and gas leases has been seated in previous studies of which three will be reviewed in detail. GASKINS AND VANN Gaskins and Vann computed values of the ratio of the sum of the highest bids to the sum of the U.S. presale estimates, Fmax/est, for leases that presale estimates, Fmax/est, for leases that received the same number(s) of bids. Precise definition of Fmax/est is given in the Nomenclature. Gaskins and Vann observed that values of F increased with n, from which they concluded the "government gets a larger percentage of its estimated value when there are more bidders." For the March 28, 1974, sale, Gaskins and Vann calculated Fmax/est for four different categories of highest bids:all bids,bids in which only nonmajors were involved,bids in which one or more majors were involved, andbids in which Mobil Oil Corp. was a participant. (No list was given of which bidders are classed as major.) Values of Fmax/est when majors and/or Mobil were involved in the highest bid were more often lower than for the other categories of highest bids. From this, Gaskins and Vann concluded that the "data support the hypothesis that major oil companies, and Mobil in particular, were able to attain lower winning bids..." We recalculated values of F,../est for the March 28, 1974, sale. These are shown in Table 12 along with comparable values of Fm../mean and Fmean/est. The agreement between values of Fmax/est presented by Gaskins and Vann and in Table 1 is excellent in most cases. Some of the differences, however, may be explained by differing definitions of majors. We considered these eight companies as major: Amoco International Oil Co., British Petroleum Ltd., Chevron U.S.A. Inc., Exxon Corp., Gulf Oil Corp., Mobil Oil Corp., Shell Oil Co., Texaco Inc. Other differences may be caused by disagreements in source data and/or computations.

scholarly journals Globalization and COVID-19: The Role of Local and Regional Authorities In Context Of International Relations

2021 ◽  
Vol 92 ◽  
pp. 01057
Author(s):  
Blanka Wurst Hašová ◽  
Pavla Varvažovská
Keyword(s):  
International Relations ◽  
Value Added ◽  
Recovery Process ◽  
Primary Sources ◽  
Special Focus ◽  
Policy Debate ◽  
Mutual Cooperation ◽  
Multi Stakeholder ◽  
Regional Authorities ◽  
The Impact

Research background: International Municipal Cooperation in context of globalization and decentralization can be considered as a widely researched phenomenon. Still, the recent COVID-19 Pandemic prepared unexpected developments at all levels of the society. Purpose of the article is to examine the impact of the COVID-19 Pandemic on models/forms of cooperation between crucial players in the international relations arena, with a special focus on the international-regional/local cooperation axis. Methods of content and comparative analysis based on primary sources and scientific literature review are used. In the methodological framework of the Multi-level Governance Concept (Marks, G., 1993), reactions of relevant International Organizations on COVID-19 with regard to local and/or regional Self-Government Authorities are analysed. Findings and value added: The crisis deepened the importance of local and regional Self-Government Authorities in the recovery process and urged international players to pay an increased attention to mutual cooperation and subsequent implementation of measures needed. Especially the Multi-stakeholder Partnership has been strengthened. This paper intended to contribute to current academic and public policy debate.

scholarly journals El Entorno Macroeconómico Y Su Influencia En La Competitividad En El Sector Turismo En México

Xihmai ◽  
2013 ◽  
Vol 8 (16) ◽  
Author(s):  
Jesús Amador Valdés Dí­az de Villegas
Keyword(s):  
Value Added ◽  
Tourism Demand ◽  
Demand And Supply ◽  
Factors Affecting ◽  
Local Resources ◽  
Tourism Sector ◽  
Tourism Enterprises ◽  
The Impact ◽  
Macroeconomic Environment ◽  
Value Added Products

Resumen En el caso del sector turismo, su competitividad  se define como la capacidad de un destino para crear e integrar productos con valor añadido, de tal forma que se logren empelar los recursos locales y que se logre mantener su posición dentro del mercado  (Hassan, 2000). Para México el Sector Turismo tiene gran importancia, por su participación en el PIB, el análisis de los factores que influyen en su nivel de eficiencia es fundamental, dado que de ella depende el nivel de competitividad. Estos factores pueden ser exógenos (los que determinan el entorno) y endógenos propios de la empresa. El objetivo en el trabajo es analizar el entorno macroeconómico en que se desarrollan las empresas turí­sticas en México y el impacto en los grados de competitividad para las empresas que se encuentran dentro del sector. Por tanto para lograr este fin, se parte metodológicamente de variables que determinan las prioridades del consumo del bien turí­stico (ocio e ingreso), para poder realizar el análisis de la demanda y de la oferta turí­stica, involucrando solo otras variables exógenas al  entorno macroeconómico siempre y cuando sean requeridas por el estudio. Palabras Claves: Entorno Macroeconómico, Competitividad, Turismo, Demanda turí­stica, Oferta turí­stica   Abstract For the tourism sector, its competitiveness is defined as the ability of a destination to create and integrate value-added products, so as to achieve empelar local resources and is able to maintain its market position (Hassan, 2000). For Mexico the Tourism Sector is very important, for its share of GDP, the analysis of the factors affecting their efficiency is critical, since it depends on the level of competitiveness. These factors may be exogenous (which determine the environment) and endogenous own company. The objective is to analyze the macroeconomic environment in which they develop tourism enterprises in Mexico and the impact on the degree of competitiveness for businesses that are within the sector. So to this end, is methodologically part of variables that determine the priorities of the good tourist consumption (leisure and income), to perform the analysis of the demand and supply of tourism, involving only other exogenous macroeconomic variables always and when required by the study Keywords: Macroeconomic Environment, Competitiveness, Tourism, tourism demand, tourism Offer

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