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.

scholarly journals Assessment of the Impact of the Adverse Economic Geopolitical Environment on the Worth of Russian Oil and Gas Companies

2018 ◽  
Vol 8 (2) ◽  
pp. 30-43 ◽  
Author(s):  
V. S. Lipatnikov ◽  
K. A. Kirsanova
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Oil Industry ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Market Capitalization ◽  
The Cost ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil Company

The relevance of the chosen topic is connected to the fact that in the conditions of value-based management, market capitalization acts as a key indicator of the company efficiency. At the present time, when the Russian oil and gas industry has become the object of international sectoral sanctions, the identification of the impact of these sanctions on the domestic oil and gas companies’ value is of great practical importance. The article considers the cost of oil and gas companies and the impact of sectoral sanctions and negative dynamics of oil prices. The study was conducted using econometric modeling tools. For analysis 4 of the oil company with the largest market share, namely PJSC “Rosneft Oil Company”, PJSC “LUKOIL”, JSC “Gazprom Neft” and PJSC “Tatneft”, which in the aggregate represent 62% of the entire Russian oil industry, were selected. The features of valuation of Russian oil and gas companies are covered. The sanctions in the oil and gas industry of the Russian Federation are considered, the consequences of their introduction and the fall of the world oil price are analysed. The analysis to determine the impact of the cost of oil and gas companies from international sanctions and oil prices. It was found that in the oil industry market capitalization depends directly on the price of oil, and in the gas industry this impact is absent. It was discovered that due to the low level of oil prices, the sanctions did not have a significant influence on the cost of oil and gas companies. 

scholarly journals The impact of oil companies’ sustainability on environmental safety

2021 ◽  
Vol 937 (2) ◽  
pp. 022079
Author(s):  
E Markovskaya ◽  
N Nikolaishvili ◽  
P Kashperyuk
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Environmental Sustainability ◽  
Oil And Gas ◽  
Environmental Safety ◽  
Environmental Indicators ◽  
Oil Companies ◽  
Corporate Social ◽  
Oil And Gas Companies ◽  
The Impact

Abstract The pandemic has significantly worsened the situation of oil and gas companies, causing a decline in demand and prices on the global energy market. In this crisis situation, there is an urgent need to review the organizational activities of companies, within which there is an interest in studying the impact of corporate social responsibility on the sustainability of companies and their environmental safety. Despite a sufficient number of empirical works studying the impact of corporate social responsibility on environmental indicators, there are not enough works in foreign and domestic literature studying this relationship on the example of the oil and gas industry. The purpose of this work is to determine the impact of corporate social responsibility on the environmental sustainability of oil and gas companies. The object of this study is corporate social responsibility, and the subject is the impact of corporate social responsibility on the sustainability of oil and gas companies.

scholarly journals Issue of Accumulation and Redistribution of Oil and Gas Rental Income in the Context of Exhaustible Natural Resources in Arctic Zone of Russian Federation

2020 ◽  
Vol 8 (12) ◽  
pp. 1006
Author(s):  
Natalia Kirsanova ◽  
Olga Lenkovets ◽  
Muhammad Hafeez
Keyword(s):  
Economic Development ◽  
Russian Federation ◽  
Oil And Gas ◽  
Income Redistribution ◽  
Raw Material ◽  
The Arctic ◽  
Material Base ◽  
Arctic Zone ◽  
Socio Economic Development ◽  
The Impact

The significant resource potential of the Arctic has attracted the attention of its adjacent countries and extra-regional states. The mineral and raw material base of the Arctic Zone of the Russian Federation (AZRF) comprises a wide range of minerals. However, due to its hydrocarbon reserves, the Arctic is considered to be the most important geopolitical and geo-economic macro-region for Russia. A significant portion of the Arctic hydrocarbons (about 19%) is concentrated in the territory of Russia’s shelf. The extraction of Arctic marine oil and gas resources and ensuring the sustainability of the Russian energy complex depend significantly on the level of Arctic development. Thus, the pace and quality of the development of AZRF are strategically important to ensure the national interests of the country. It has been proven that the implementation of the state program for AZRF development and strategic plans of the largest companies operating in the region consolidate the raw material nature of AZRF development. Rent becomes the main form of income. This article addresses the main directions of the region’s development and the factors that prevent a high level of industrialization, which increase attention to the withdrawal and redistribution of rental income. The article considers the Russian and foreign experiences of withdrawal and redistribution of oil and gas rental income, and analyzes the level of socio-economic development of AZRF. The authors suggest a methodology for assessing the impact of a country’s area and population size on the ability to achieve a high income due to hydrocarbons. The authors also explain the principles of rental income redistribution in the region as a basis for improving the level of AZRF’s socio-economic development and as a condition for transition from the “colonial model” of development to the “sustainable development” model. The study results can be used to elaborate a mechanism for rental income redistribution in AZRF and state programs for the region’s development.

scholarly journals Analysis of the oil market and the impact of integration processes on socio-economic development indicators of Russia

2021 ◽  
Vol 284 ◽  
pp. 07012
Author(s):  
Guzaliya Klychova ◽  
Alsou Zakirova ◽  
Movlatkhan Shadieva ◽  
Ullah Raheem ◽  
Ayaz Zakirov
Keyword(s):  
Economic Development ◽  
Oil And Gas ◽  
Monopolistic Competition ◽  
Time Integration ◽  
State Regulation ◽  
The State ◽  
Competitive Environment ◽  
Oil Market ◽  
Socio Economic Development ◽  
The Impact

In modern conditions oil and gas sector is not only the largest sector of the economy, also this industry plays an important role in social and economic development of the state. In this regard, there is a need for effective regulation of the oil and gas complex, in particular, the state regulation. Market concentration indices CR-3, CR-4, Herfindahl-Hirschman index, Hall-Teidman index and Lind index have been calculated for competitive environment analysis. Having analyzed the competitive environment of the Russian oil market in 2015-2019, it was possible to find out that the Russian oil market in 2015-2016 was moderately concentrated, in 2017-2019 - highly concentrated; during the whole period under consideration the Russian oil market was a monopolistic competition market. The study also analyzed the impact of integration processes on the indicators of socio-economic development of the country. The analysis revealed that gross domestic product (GDP) and consolidated budget revenues are moderately strongly influenced by integration processes on the oil market; the volume of oil production with gas condensate is moderately influenced by them. At the same time, integration processes in the oil market do not have a significant impact on economic growth and foreign trade balance.

Reversing the ‘Resource Curse’ Phenomenon in Nigeria: An Assessment of the Nigeria Extractive Industries Transparency Initiative Act After a Decade

2017 ◽  
Vol 10 (2-3) ◽  
pp. 141-162
Author(s):  
Nelson Ojukwu-Ogba ◽  
Patrick Osode
Keyword(s):  
Economic Development ◽  
Natural Resources ◽  
Oil And Gas ◽  
Effective Means ◽  
Resource Curse ◽  
Extractive Industries ◽  
Socio Economic Development ◽  
The Impact ◽  
Driving Potential

Abstract Natural resources endowment is a blessing to the endowed states due to their catalytic development-driving potential. The exploitation of the endowment should result in rapid socio-economic development. However, for most developing states, the blessing of these natural resources strangely tends to turn disadvantageous; a phenomenon that has been distinctly identified in the literature as ‘the resource curse’. This paper examines that phenomenon, using Nigeria as a case study given the serious environmental, political and socio-economic challenges occasioned by the country’s exploitation of its oil and gas endowment. The paper particularly considers the impact of the statutory intervention in Nigeria to reverse the trend through the instrumentality of the Nigeria Extractive Industries Transparency Initiative Act (NEITI Act) 2007. The paper further explores what could be the most effective means of containing the said problems in light of their implications for the future of the country and its people.

scholarly journals THE IMPACT OF STRUCTURAL OND MACROECONOMIC IMBALANCES ON THE FUNDAMENTAL TRENDS OF THE SOCIO-ECONOMIC DEVELOPMENT IN THE MIDDLE EAST AND NORTH AFRICA

2017 ◽  
Vol 10 (2) ◽  
pp. 13-33 ◽  
Author(s):  
I. O. ABRAMOVA ◽  
L. L. FITUNI
Keyword(s):  
Economic Development ◽  
Middle East ◽  
North Africa ◽  
Oil And Gas ◽  
Negative Impact ◽  
Economic Policies ◽  
Mena Countries ◽  
Macroeconomic Imbalances ◽  
Socio Economic Development ◽  
The Impact

Structural and macroeconomic imbalances have been an inalienable  feature of the socio-economic development in the Middle East and  North Africa (MENA) since independence. Both types of  disproportions produce a negative impact upon fundamental  development trends in the region. Against this background, this  paper analyses the structure and hierarchies of imbalances in the  region of the Middle East and North Africa. The article argues that broad-range monitoring of fiscal and macroeconomic indicators  can facilitate the identification of emerging imbalances and provide  ways of overcoming them. The article contends that the natural and  climatic and resource factors quite rigidly determined the economic  profile of the region, which, in turn, predetermines the key structural  and macroeconomic imbalances that affect MENA  socio-economic development. The historical asymmetry in the  development of the MENA states, which for a long time had been parts of the British, French and Ottoman colonial empires, with their economic or strategic roles determined by the overseas rulers,  created prerequisites for the subsequent economic differentiation of  the countries of the region. Over the years of independence, the  uneven development of the initially similar agrarian-Bedouin  economies has increased dramatically as a result of the socio- economic policies carried out by the sovereign governments in  accordance with the resource capacities of each country. The authors categorise MENA countries, dividing them into five groups, depending on the nature and determinants of economic  development. The authors insist that almost all the current social  and economic problems of the region are related to its two  fundamental specific characteristics: colossal rental incomes (mainly  of oil and gas origin) and relative overpopulation. The article exposes main macroeconomic imbalances MENA states, demonstrating the asymmetry of intra-regional development  and structural distortions of the economic and demographic nature. On the basis of complex fiscal and macroeconomic data analysis the  authors identify the existing imbalances. The paper produces a  critique of existing macroeconomic stabilization policies in MENA states and their attempts to overcome the existing imbalances. I.  Abramova and L. Fituni provide an augmented assessment of the  typical policy failures in MENA. The research results in a forecast of  the dynamics of financial determinants of macroeconomic stability in the region and the authors’ vision of ways to overcome or limit the  existing and imminent imbalances. The authors come to the  conclusions that that MENA countries need to accelerate structural reforms in order to overcome imbalances and to achieve  diversification of their economies. Expanding the opportunities for  the national private sector and increasing its importance in the non- oil segment of the economy could help to alleviate the employment  situation and increase the effective consumer demand.

Neft-qaz sektorunun sosial-iqtisadi inkişafa təsirinin təhlili və qiymətləndirilməsi

2010 ◽  
Author(s):  
Elshan Hajizadeh ◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Oil And Gas ◽  
Medium Term ◽  
Current State ◽  
Socio Economic Development ◽  
The Impact ◽  
Oil And Gas Sector

Purpose - an analysis and assessment of the current state of the manufacturing infrastructure building oil and gas sector of Azerbaijan, its role and importance in the economy, as well as assessment of the impact of this sector to the socio-economic development. Findings are evaluation of role and importance of oil and gas sector in GDP in 1988-2011, forecasting of this sector impact on economic growth in the short and medium term. Originality - evaluate the role and importance of oil and gas sector in the years 1988-2011 in the structure of the runway, the forecast of its impact on socio-economic development in the short and medium term.

Analyzing the market valuations of the world's leading public oil and gas corporations

2020 ◽  
Vol 26 (12) ◽  
pp. 2765-2789
Author(s):  
O.V. Shimko
Keyword(s):  
Oil And Gas ◽  
Balance Sheet ◽  
Oil And Gas Industry ◽  
Market Valuation ◽  
Net Income ◽  
Consolidated Financial Statements ◽  
Market Capitalization ◽  
Economic Analyses ◽  
Market Valuations ◽  
Oil And Gas Companies

Subject. This article explores the market valuation ratios of the twenty five leading public oil and gas companies between 2006 and 2018. Objectives. The article aims to identify key trends in the changes in market valuations of the largest public oil and gas companies, and identify the factors that have caused these changes. Methods. For the study, I used comparative, and financial and economic analyses, and generalization of materials of the companies' consolidated financial statements. Results. The article shows certain changes in the main indicators of market valuation of the leading public oil and gas companies and identifies the main factors that contributed to these changes. It establishes that the most significant for comparison and valuation are ratios based on balance sheet values of assets and equity, and EBITDA, DACF and net income ratios are appropriate as auxiliary ratios. The article says that the exchange segment of the industry has increased the debt load, so instead of market capitalization as a component of the coefficients of this group, it is advisable to apply the company's value indicator. Conclusions and Relevance. The article concludes that the market sentiments towards the stock market segment of the global oil and gas industry are getting impaired. This is quite natural against the background of falling profitability of most leading companies. The results of the study can be useful in evaluating, forecasting and developing measures to increase the market capitalization and value of public oil and gas companies.

The Northern Sea Route as a Tool of Arctic Development

2019 ◽  
pp. 21-44
Author(s):  
Ju.V. Zvorykina ◽  
K.S. Teteryatnikov
Keyword(s):  
Economic Development ◽  
Oil And Gas ◽  
The Arctic ◽  
Arctic Zone ◽  
Investment Projects ◽  
Northern Sea Route ◽  
Important Region ◽  
Socio Economic Development ◽  
Asian Pacific ◽  
Simplified Procedure

The article is devoted to the analysis of the role of the Northern Sea Route (NSR) in the socio-economic development of the Arctic zone of Russia. The authors believe that climate change, gradually leading to the melting of polar ice, opens up new opportunities for the development of Arctic resources and navigation in the seas of the Arctic Ocean. Of particular interest to the NSR are non-Arctic countries, critically dependent on the supply of foreign mineral and carbon resources, as well as on the export of their goods to Europe. Among them, China stands out, considering the NSR as the Arctic Blue Economic Corridor as part of the global Silk Road system. The NSR is intended to become an essential tool for further development of the Arctic zone of Russia. Development of port infrastructure and creation of a modern ocean and maritime fleet will accelerate the pace of socio-economic development of this strategically important region. To do this, it is necessary to adopt a federal law on special system of preferences for investors, including foreign ones, implementing their projects in the Arctic. Among such preferences there are preferential profit tax rates, reduction in Mineral Extraction Tax (MET) rates, a declarative procedure for VAT refunds, a simplified procedure for granting land plots and unchanged conditions for the implementation of investment projects. In addition, it is important to make the NSR safe and profitable both in terms of quality of service and of price for the shippers. In particular, the payment for icebreakers’ escort of vessels should be competitive and reasonable. The largest Russian private and state-owned companies should be involved into Arctic projects. It is important to synchronize the Arctic oil and gas projects with nuclear and LNG icebreakers’ construction, as well as with the launch of two logistics hubs in Murmansk and Kamchatka. In this case, year-round NSR navigation will be organized, which will ensure the high competitiveness of Russian products supplied to the Asian Pacific markets.

Assessment of the influence of the spatial environment on the socio-economic development of the municipality

2019 ◽  
Vol 40 (3) ◽  
pp. 148-155
Author(s):  
K. N. Yusupov ◽  
V. M. Timiryanova, ◽  
Iu. S. Toktamysheva ◽  
A. F. Zimin,
Keyword(s):  
Economic Development ◽  
Socioeconomic Development ◽  
Statistical Data ◽  
Geographical Location ◽  
Integrated Approach ◽  
The State ◽  
Municipal District ◽  
Socio Economic Development ◽  
Spatial Environment ◽  
The Impact

The article presents a methodology for assessing the impact of spatial environment on the socioeconomic development of municipalities. It relies on existing tools for assessing the state and potential of the geographical location of municipalities. An integrated approach allows to determine the potential of the interaction of the municipality with the neighbors of the first and second order. The methodology was tested on statistical data on the Blagovarsky municipal district.

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