Corporate integration processes as a mechanism to manage the oil sector of Russia

Abstract

Subject. The oil industry is a key and fundamental source of fiscal revenue in Russia. It includes the mining, refining, transportation and sale of oil and petrochemicals. In this respect, it is important to examine the institutional environment of entities and enterprises operating in the oil sector, and mechanisms and tools for public administration in the sector. The management quality determines not only the performance of some companies, but the national socio-economic development. Objectives. I substantiate that corporate integration processes influence the management of the oil sector in Russia. I also outline my recommendations on the prediction of the sectoral development by modeling the M&A data. Methods. To make reasonable and reliable conclusions, I carry out the statistical and retrospective analysis and econometric modeling apparatus. Results. I analyzed how corporate integration processes influenced the public administration in the oil sector of the Russian Federation. Based on the correlation and regression analysis, I conclude on the extent to which each factor influences the development indicators of the oil sector. Conclusions and Relevance. In addition to traditional tools of the sectoral regulation, special governmental authorities should use the mechanism of corporate integration processes. Furthermore, governmental institutions should join the process to enhance the management, ensure the balance of short-term and long-term interests of some business structures and the entire sector, and the sustainable development of the national oil sector.