DIVERSIFICATION OF OIL AND GAS COMPANIES’ ACTIVITIES IN THE CONDITION OF OIL PRICES REDUCTION AND ECONOMIC SANCTIONS
https://doi.org/10.24833/2071-8160-2016-6-51-144-151
Abstract
This article analyzes the influence of the economic sanctions imposed from the USA and the EU and oil prices reduction on the oil and gas companies and the directions of diversification of their activity as a method of management of price risks are considered. In the modern dynamic and quickly developing world, in the conditions of globalization and market economy, the oil and gas companies are affected by various risks which can exert negative impact on production and financial results. Risks can arise in absolutely various spheres, beginning from natural and technological hazards, and finishing with price risks. Sharp reduction of oil prices and decrease in demand for energy resources in the world markets, first of all in the European countries, input of financial or technological sanctions from the USA and Europe against Russia in 2014 has caused necessity of search a new more effective methods of price risks management of the oil and gas company. The methods of price risk management include the creation of commodity reserves, the establishment of a reserve fund, long-term contracts, subsidies from the state and the diversification of activities. The most effective it is possible to offer diversification of oil and gas companies' activity. It is expedient to carry out diversification of oil and gas companies' activity in such directions as geographical diversification of the oil, oil products and gas realization directions, geographical diversification of oil and gas companies' purchasing activity, diversification of oil, oil products and gas transportation ways, diversification of oil and gas companies' business. This approach allows to expand the activities of the oil and gas companies and create additional ways to generate revenue and enhance efficiency of oil and gas companies.
About the Authors
A. V. Sheveleva
Moscow State Institute of International Relations (University)
Russian Federation
Russian Federation
PhD. Econ. Sci., Associate Professor at management, marketing and foreign economic activity department,
76 Prospect Vernadskogo, Moscow, 119454
L. B. Akieva
Moscow State Institute of International Relations (University)
Russian Federation
Russian Federation
Consultant at Strategic Studies and geopolitics of energy Center of International Institute of Energy Policy and Diplomacy,
76 Prospect Vernadskogo, Moscow, 119454
References
1. Akieva L.B., Shevelev V.A. Khedzhirovanie: problemy upravleniia tsenovymi riskami neftegazovykh kompanii. [Hedging: the problems of price risk management for oil and gas companies]. Neftegaz.RU, 2016, no. 5-6, pp. 92-96. (In Russian).
2. Vliianie ekonomicheskikh sanktsii na rossiiskii neftegazovyi kompleks. [The impact of economic sanctions on the Russian oil and gas sector]. Analytical report prepared by the special order of Neftegazstroyprofsoyuz of Russia. Moscow, 2014.44 p. (In Russian).
3. Zagrebel'naia N.S., Sheveleva A.V. Normativno-pravovoe regulirovanie deiatel'nosti po upravleniiu riskami investitsionnykh proektov[Legal regulation of risk management of investment projects]. Pravo I upravlenie XXI vek. 2015, no, 2 (35), pp. 92–101.
4. Posledstviia nizkikh tsen dlia neftianoi otrasli [The consequences of low prices for the oil industry]. Energeticheskiibiulleten'. January 2015, no. 20. pp. 1-32. (In Russian).
5. Tiaglov S.G., Sheveleva A.V. Vliianie sanktsionnoi politiki na ekologoorientirovannoe razvitie predpriiatii neftegazovogo kompleksa RF [Effect of the sanctions policy on environmentally oriented development of the enterprises of oil and gas complex of Russia] Regional'naia ekonomika: teoriiaipraktika. 2016, no1, pp.153-162. (In Russian).
6. Tiaglov S.G., Sheveleva A.V. Strategicheskie orientiry ustoichivogo razvitiia neftegazovogo kompleksa Rossii [Strategic guidelines for sustainable development of oil and gas complex of Russia] Vestnik Severo-Osetinskogo gosudarstvennogo universiteta. 2014, no. 3, pp. 402-406. (In Russian).
7. Sheveleva A.V. Strategii razvitiia mezhdunarodnykh neftianykh kompanii [The development strategy of international oil companies]. Moscow, MGIMO-University, 2013, pp. 71-79. (In Russian).
8. Sheveleva A.V., Efimova N.V., Zagrebel'naia N.S. Osnovy ekonomiki firmy [Economics of the firm]. Moscow, MGIMO-University, 2015.478 p. (In Russian).
9. Aleksashenko S. Not Thanks to But Despite. Russian Politics and Law, 2016, vol.54, no.4, pp. 351-364. (In Russian).
10. Dreger C., Kholodilin K.A., Ulbricht D., Fidrmuc J. Between the hammer and the anvil: The impact of economic sanctions and oil prices on Russia’s ruble. Journal of Comparative Economics. 2016, January 13, pp.1-35.
11. Mau V. Between crises and sanctions: economic policy of the Russian Federation. Post Soviet Affairs. 2016, vol. 32, no. 4, pp .350-377.
12. Mohaddes K., Pesaran M.H. Country-Specific Oil Supply Shocks and the Global Economy: A Counterfactual Analysis. CESifo Working Paper, 2015, no. 5367.
13. Tuzova E., Qayum F. Global oil glut and sanctions: The impact on Putin’s Russia. Energy Policy, 2016, no 90, pp.140-151.
14. Veebel V., Markus R. At the Dawn of a New Era of Sanctions: Russian-Ukrainian Crisis and Sanctions. Orbis, 2016, vol. 60, no 1, pp.128-139.
Review
For citations:
Sheveleva A.V., Akieva L.B. DIVERSIFICATION OF OIL AND GAS COMPANIES’ ACTIVITIES IN THE CONDITION OF OIL PRICES REDUCTION AND ECONOMIC SANCTIONS. MGIMO Review of International Relations. 2016;(6(51)):144-151. (In Russ.) https://doi.org/10.24833/2071-8160-2016-6-51-144-151
Views:
1583
Email this article 