Financial stability strategies for oil companies amidst high volatility in the global oil products market

Abstract

The increasing instability within the global oil sector poses a challenge for contemporary companies to devise and implement effective financial stability strategies. The aim of this study is to analyse the financial stability strategies employed by oil companies, explore alternative approaches amidst the global volatility of the oil market, and develop a methodological framework for evaluating financial strategies, utilising an alternative options matrix. The author's methodological approach is proposed: a matrix of the company's alternative financial strategies is created. In this study, data from the top 10 largest oil companies in the world for the years 2015–2019 were utilised. Exxon Mobil and CNPC exhibit the lowest level of financial stability. A sustainable growth strategy is necessary for Aramco, Rosneft, and ADNOK. Kazmunaigas should adopt a strategy focused on ensuring financial stability in the event of adverse external conditions. For Exxon Mobil, maintaining financial stability is a relevant strategy. CNPC should consider implementing a financial stabilisation strategy contingent upon favourable market dynamics. The practical significance of the research results lies in providing specific conclusions and recommendations regarding optimal financial stability strategies for oil companies and stakeholders amidst global market volatility conditions. The analysis of the alternative financial strategies matrix may serve as a foundation for managerial decision-making aimed at ensuring company resilience in fluctuating economic environments and enhancing their competitiveness.