scholarly journals Financial Sustainable Growth Theory as a Result of Interaction with Energy, Environmental and Social Processes (Evidence from Oil and Gas Industry)

2019 ◽  
Vol 23 (2) ◽  
pp. 134-152 ◽  
Author(s):  
A. N. Steblyanskaya ◽  
Zhen Wang ◽  
Z. V. Bragina
Keyword(s):  
Energy Efficiency ◽  
Social Welfare ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Environmental Indicators ◽  
Sustainable Growth ◽  
Gas Industry ◽  
Growth System ◽  
Financial Growth ◽  
Oil And Gas Companies

The research is based on the materials of the largest oil and gas companies in Russia and China, whose total production in each country exceeds 86%. The authors used indicators that are available to the world statistics and relate to the system of sustainable financial growth in Russia and China from 1996 to 2016. The aim of the article is to study the impact of investments in personnel social welfare, energy efficiency and environmental protection on sustainable financial growth of the oil and gas industry. The research objectives are to develop a theory of sustainable financial growth in the oil and gas industry, as well as its assessment and forecasting tools. The authors use the methods of statistical analysis of financial, social, energy and environmental coefficients, and mathematical modeling. They propose a new methodology for calculating the index of the financial sustainable growth system. The authors substantiate the composition and the structure of the sustainable financial growth system of oil and gas companies in Russia and China, as well as the composition of the economic processes that influence or predetermine this growth. The relationship between the subsystem indicators were analyzed in the article. The article substantiates the index of the sustainable financial growth system of oil and gas companies in Russia and China. The authors developed a model for calculating the index of the sustainable financial growth system in the AnyLogic program. The results of the study showed that the factors of the “energy efficiency” and “social subsystem” subsystems affect financial sustainable growth in Russian oil and gas companies, but the financial subsystem is least dependent on the “environment” subsystem. The situation in Chinese oil and gas companies is the opposite: the financial sustainable growth is mostly affected by the factors of the “environment” and “energy efficiency” subsystems. The financial subsystem is least connected with the subsystem of personnel social welfare. Nevertheless, the study proves that in the oil and gas companies in both countries, nonfinancial indicators (each country has its own block) have a positive effect on the financial sustainable growth. According to the authors, the main conclusion is to consider social, energy and environmental indicators that have the strongest influence on the financial sustainable growth in the company’s financial statements. The developed AnyLogic model can be used to predict the index of the sustainable growth system and its management. The results of the study are recommended for the oil and gas corporations of China.

scholarly journals Financial Sustainable Growth System 2030 Evidence from Russian and Chinese Gas Companies

2019 ◽  
Vol 23 (4) ◽  
pp. 6-23
Author(s):  
A. N. Steblyanskaya ◽  
Zhen Wang ◽  
G. B. Kleiner ◽  
Z. V. Bragina ◽  
A. R. Denisov
Keyword(s):  
Oil And Gas ◽  
Mutual Influence ◽  
Methodological Approach ◽  
Oil And Gas Industry ◽  
Sustainable Growth ◽  
Gas Industry ◽  
Sarima Model ◽  
Growth System ◽  
Financial Growth ◽  
Oil And Gas Companies

The aim of the article is to study the prospects for sustainable financial growth of the gas industry in Russia and China until 2030. unlike traditional interpretations, the authors consider financial sustainability as a result of the interaction and mutual influence of energy, environmental, economic and social processes grouped into subsystems. The authors analyzed the statistical indicators of the sustainable financial growth system of the largest oil and gas companies in Russia and China from 1996 to 2016. A model for calculating the financial sustainable growth system in the Python programming language was developed. The Lasso regression analysis method and the SARIMA model were used. The sustainable financial growth system index of oil and gas companies was substantiated. By means of the system methodology, the authors identified problems and systematized the contradictions in the organization of the sustainable financial growth in the gas industry of the two countries. As part of the proposed methodological approach, the original SARIMA model was built. The model explains the internal structure of the financial growth sustainability of the oil and gas industry in Russia and China. The authors calculated the sustainable financial growth system forecast for Russia and China until 2030. The calculations showed that in the future the system of sustainable financial growth in China’s oil and gas industry may be disrupted. The authors offer ways to prevent the development of these negative trends. Namely: the promotion of social responsibility of state corporations, the development of green and social financing, the study of energy efficiency. In Russia, the stability of the financial growth of the oil and gas industry is characterized by stability over the entire forecast period.

scholarly journals Corporate Environmental Disclosures of Oil and Gas Companies in India: An Analysis of Executives’ Perceptions

2021 ◽  
Vol 16 (3) ◽  
pp. 861-879
Author(s):  
Kishore Kanti Majumdar ◽  
Shuchi Pahuja
Keyword(s):  
Value Chain ◽  
Oil And Gas ◽  
Environmental Issues ◽  
Oil And Gas Industry ◽  
Environmental Indicators ◽  
Annual Reports ◽  
Gas Industry ◽  
Sustainability Disclosure ◽  
Environmental Disclosures ◽  
Oil And Gas Companies

Environmental and sustainability issues have assumed significance, leading to social and legal pressures on the companies across the world to take steps to reduce and prevent adverse impact of their activities on the environment and to disclose this information to the concerned stakeholders. The present study aims at investigating the perceptions of executives from 26 listed Indian oil and gas companies on Corporate Environment Disclosures (CEDs)in the annual reports using a structured questionnaire.The questionnaire was constructed on the basis of eleven environmental indicators provided in international oil and gas industry guidelines for voluntary sustainability reporting framework. An attempt was made to determine whether the extent and type of environmental disclosures have correlation with executives’ position in the organization, their knowledge about the annual reports, their stock holdings in the company and the value stream to which the companies belonged. It was found thatthe responding executives were well aware of the environmental issues associated with activities across the value chain in the oil and gas industry. They agreed that these issues are material and must be disclosed in the annual reports, but had different perceptions on the importance of four environmental issues given in the questionnaire for disclosure in the reports. A significant statistical relationship was found between perceived corporate environmental disclosure index (PCEDI) and respondents’ positions in the company and their knowledge on the annual reports. It is suggested that a greater role to knowledgeable senior executives at key positions should be assigned to deal with sustainability disclosure affairs.

EBITDA and DACF multipliers as an indicator of investment attractiveness of domestic vertically integrated companies

2021 ◽  
Vol 20 (4) ◽  
pp. 718-752
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Oil And Gas Industry ◽  
Financial Economic ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Debt Burden ◽  
Fixed Assets ◽  
Settlement Agreements ◽  
Oil And Gas Companies

Subject. The article addresses the EV/EBITDA and EV/DACF ratios of the twenty five largest public oil and gas corporations from 2008 to 2018. Objectives. The purpose is to identify key trends in the value of EV/EBITDA and EV/DACF ratios of biggest public oil and gas corporations, determine factors resulted in the changes over the studied period, and establish the applicability of these multipliers for assessing the business value within the industry. Methods. I apply methods of comparative and financial-economic analysis, and generalization of consolidated financial statements data. Results. The study revealed that EV/EBITDA and EV/DACF multiples are acceptable for valuing oil and gas companies. The EV level depends on profitability, proved reserves, and a country factor. It is required to adjust EBITDA for information on impairment, revaluation and write-off for assets that are reported separately from depreciation, depletion and amortization costs, as well as for income or expenses arising after the sale of fixed assets and as a result of effective court decisions or settlement agreements. It is advisable to adjust DACF for income, expenses and changes in assets and liabilities, which are caused by events that are unusual for oil and gas companies. Conclusions. The application of EV/EBITDA and EV/DACF multiples requires a detailed analysis and, if necessary, adjustments of their constituent components. However, they are quite relevant in the context of declining profitability and growing debt burden in the stock exchange sector of the global oil and gas industry.

Assessment of Conflict Management in Niger Delta and Implications for Sustainable Development of Oil and Gas in Nigeria

2021 ◽  
Author(s):  
Humphrey Otombosoba Oruwari
Keyword(s):  
Conflict Management ◽  
Niger Delta ◽  
Oil And Gas ◽  
Ecological Factors ◽  
Oil And Gas Industry ◽  
Negative Effects ◽  
Gas Industry ◽  
Secondary Sources ◽  
Positive Elements ◽  
Oil And Gas Companies

Abstract Nigerian oil and gas industry have over the years witnessed incessant conflicts between the stakeholders, particularly the host communities in Niger Delta region and the oil and gas companies in partnership with the Federal Government. Conflict which is here defined as manifestation of disagreement between individual and groups arising from differing and mutually incompatible interests has both positive and negative effects depending on how it was managed. Managing conflicts is all about limiting the negative aspects. The study examined conflicts management in Nigeria oil and gas industry and how best the positive elements of conflicts can be maximally exploited for the mutual benefit of both oil and gas company and the host communities in Niger Delta. The study adopted the multidisciplinary approach, literature review, case study and relied on secondary sources using analytical method of data analysis. The study findings revealed that the major factors that precipitate conflicts between the oil and gas industry and host communities in Niger Delta include economic, social, political, and ecological factors. There are available strategies that can be used in conflict management. These include avoiding, accommodating, or smoothing, competing, or forcing, compromising, and collaborating. Any of these strategies can be used to manage conflict depending on the situation, the environment factor, and the nature of the conflict. The problem is that the oil and gas companies in partnership with the Nigerian government often adopted the wrong approach in dealing with the conflict with host communities, using avoiding or forcing strategies. The study recommends collaboration strategy which ensues long term-term solution to mutual benefits.

Applying asset-and equity-based multipliers in the valuation of oil and gas corporations

2021 ◽  
Vol 27 (1) ◽  
pp. 129-167
Author(s):  
Oleg V. SHIMKO
Keyword(s):  
Oil And Gas ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Oil And Gas Industry ◽  
Comparative Approach ◽  
Consolidated Financial Statements ◽  
Gas Industry ◽  
Market Capitalization ◽  
Economic Analyses ◽  
Oil And Gas Companies

Subject. This article explores the ratios of the company's market capitalization and value to the balance sheet value of assets and equity of the twenty five leading public oil and gas companies between 2008 and 2018. Objectives. The article aims to identify key trends in the changes in market capitalization and value ratios of the company to the balance sheet value of assets and equity of the largest public oil and gas companies, identify the factors that have caused these changes, and establish the applicability of these multipliers to estimate the value of the business within the oil and gas industry. 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 establishes that the multipliers studied are acceptable for assessing the value of oil and gas companies, but it is preferable to use asset-based ratios. Conclusions and Relevance. The overall decline in profitability and the increase in debt load in the stock exchange sector of the global oil and gas industry should be taken into account when using multipliers based on assets and shareholder capital in the assessment of the value of oil and gas corporations through a comparative approach. The results of the study can be used to assess the possible value of oil and gas assets as part of a comparative approach and develop measures to increase the market capitalization of public oil and gas companies.

The Impact of News on the MICEX Oil & Gas Index: Textual Analysis

2018 ◽  
Vol 2018 (4) ◽  
pp. 79-99
Author(s):  
Elena Fedorova ◽  
Oleg Rogov ◽  
Valery Klyuchnikov
Keyword(s):  
Oil And Gas ◽  
Pearson Correlation ◽  
Oil And Gas Industry ◽  
Stock Index ◽  
Gas Industry ◽  
Negative News ◽  
The Russian Federation ◽  
Oil And Gas Companies ◽  
The Impact ◽  
Oil Gas

In this study, a relationship between the mood of news and the response of the oil and gas industry index of the Russian Federation was revealed. The empirical base of the study included 8.5 million news from foreign sources. Research methodology: fuzzy sets, naive Bayesian classifier, Pearson correlation coefficient. As a result of the research, it was discovered that: 1) negative news affects the stronger than the positive on the stock index; 2) news on companies affect the value of the index, and news on the industry affect the volume of trading; 3) the sanctions did not significantly affect the coverage of Russian oil and gas companies.

System Transition to the “Eco-Finance” Sustainable Growth: Evidence from Chinese and Russian Oil and Gas Companies

2019 ◽  
Vol 2019 (4) ◽  
pp. 42-59
Author(s):  
Alina Стеблянская ◽  
Vang Zhen ◽  
Nailya Gabdrahmanova ◽  
Uvais Aleroev
Keyword(s):  
Dynamic Model ◽  
Ricci Curvature ◽  
Growth Model ◽  
Oil And Gas ◽  
Dynamic Modelling ◽  
Growth Index ◽  
Oil And Gas Industry ◽  
Sustainable Growth ◽  
System Transition ◽  
Oil And Gas Companies

In this paper, we study how financial sustainable growth matters for environment protection and social responsibility. Financial decisions that take into account long-term social and environmental consequences should be central to the system of financially sustainable growth of oil and gas companies of the world, including Russia and China. Authors present Russia and China oil and gas industry system transition to «Green Finance» sustainable growth model results with interrelation financial, environmental and social factors. Study regarded in the context of economic growth theory, system economics theory and the theory of relativity. It was created Python 3.6. financial sustainable growth model for Russia and China. A dynamic model was built on the basis of the Ricci tensor. For sustainable growth intensity analysis, it was compared Financial sustainable index (FSI), Higgins’ sustainable growth rate (SGR), Ivashkovskaya’ sustainable growth index (SGI), Ivashkovskaya’ sustainable growth index modification (SGImodif) every period indicators’ average values and the graph’ average values of the Ricci curvatures (R). Using the Ricci curvature, the parameters of a dynamic model of sustainable growth are determined for Russia and for China oil and gas industry.Key words: sustainable growth, System Dynamic modelling, Ecological Finance, Ricci Curvature, environmental financial sustainable growth, Financial Sustainable Index (FSI).

scholarly journals The Factors Affecting Behaviour Based Safety (BBS) Implementation in Oil and Gas Industry

2018 ◽  
Vol 7 (3.11) ◽  
pp. 157
Author(s):  
Amanda Antonio Galis ◽  
Norfashiha Hashim ◽  
Faridah Ismail ◽  
Norazian Mohd Yusuwan
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Top Management ◽  
Organizational Safety ◽  
Gas Industry ◽  
Factors Affecting ◽  
Management Level ◽  
Management Commitment ◽  
Top Management Commitment ◽  
Oil And Gas Companies

The application of Behaviour-Based Safety (BBS) in the oil and gas industry is facing a severe challenge that safety performance may decline when BBS intervention is removed, due to the dynamic and transitory nature of working area and workforce. This research investigates the factors affecting the implementation of Behaviour-Based Safety (BBS) approach in Oil and Gas Industry. Seven oil and gas companies practicing BBS had been chosen for case study. These companies has been implementing BBS as part of the safety exercise from 2 to 20 years. The findings show that implementation of BBS started by the request from the client. Seven challenges of implementation BBS emerged during the interview that is data management, top management commitment, employee acceptance towards program, organizational safety culture and financial barrier. While, the factor that influences the implementation of BBS is the organization commitment, top management level, training and understanding of workers toward BBS are the factors that affect the implementation of BBS in oil and gas industries.  

Research shows oil and gas companies could do far more to help female expatriates to mobilize dual-career strategies

2020 ◽  
Vol 28 (6) ◽  
pp. 21-23
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Dual Career ◽  
Heterosexual Relationships ◽  
Strategic Choices ◽  
Gas Industry ◽  
Content Type ◽  
Employment Conditions ◽  
Career Strategies ◽  
Oil And Gas Companies

Purpose The purpose of this study is to examine how female expatriates mobilize couples’ dual-career coordination strategic choices to achieve their own and their partners’ desired career goals. Design/methodology/approach The researcher initially contacted 45 expatriate women in heterosexual relationships by email. More detailed interviews were done verbally with 20 of the women. The participants were asked to explain what actions they had taken, and also the effectiveness of any employer support, to maintain two successful careers Findings The women working were often angry and disappointed with their organizations’ lack of support for their dual career strategies. They adopted strategies of their own to further mutual careers while keeping relationships on track. One is to work with their organizations to secure favorable employment conditions that minimize periods of separation and, if possible, facilitate suitable employment for their partners. A second strategy is to develop personal tactics of cooperation and coordination Originality/value The results are a demonstration to the oil and gas industry that they need to do more to support dual career couples, or they will lose out on a lot of talent.

Social licence has changed. It is time to build trust with society using the tools of today

2019 ◽  
Vol 59 (2) ◽  
pp. 615 ◽  
Author(s):  
Amber Johnston-Billings ◽  
Louise Pogmore ◽  
Mike Kaiser
Keyword(s):  
Social Media ◽  
Local Community ◽  
Oil And Gas ◽  
Local Level ◽  
Oil And Gas Industry ◽  
Investment Strategy ◽  
Gas Industry ◽  
Global Issues ◽  
Time To Build ◽  
Oil And Gas Companies

International oil and gas companies have poured significant resources into building social licence since the 1990s. Despite this extensive effort at a local community level adjacent to operations, social licence has not been consistently gained and broad-based community trust in the industry is lacking. This paper argues that social licence has not been achieved globally, because oil and gas companies have failed to respond directly and appropriately to the concerns of all stakeholders. We argue that while international oil and gas companies have largely been successful in achieving and communicating the benefits they bring at a local level, in terms of royalties, local community investment, jobs and even in environmental credentials, they have not achieved social licence because it is no longer granted by only local communities. It extends to a potentially more powerful group of largely urban dwelling broader society, enabled by technology, especially social media. A new way of communicating and operating is required if oil and gas companies want to avoid the loss of social licence in future. This article contends three distinct opportunities to strengthen social licence in today’s context: 1. Understand and use social media to proactively address the concerns of all of your stakeholders. This includes responding to societal and global issues, which no longer centre on the ‘jobs, taxes and philanthropy’ dialogue that has been the mainstay of oil and gas industry communications; 2. Stress the role gas has as an enabler of renewable energy development and penetration; and 3. Review your investment strategy in light of the scientific reality of climate change. To gain social licence in future, action will be required to follow the lead of some fossil fuel majors who have already moved to build a new world, decarbonised portfolio of the future.

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