Impact of foreign direct investment on competitive advantage in the oil and gas industry

Abstract

Subject. The article considers the impact of foreign direct investment on the world's largest oil and gas companies. Objectives. The focus is on the analysis of forms and characteristics of foreign direct investments and their impact on increasing the competitive advantages of oil and gas companies. Methods. The study employs analytical and comparative research methods. Results. It is established that foreign direct investment plays an important role in maintaining the competitive advantages of oil and gas companies. We proposed a number of measures to increase the competitive advantages of oil and gas industry enterprises. These measures relate to such areas of activity as mergers and acquisitions, capital controls of foreign investment companies, yield enhancement of foreign investments, etc. Conclusions. The center of global energy consumption is shifting from developed countries to emerging market countries. Large oil companies usually use foreign direct investment to obtain the right to develop oil fields in oil-producing countries, which significantly increases the income from oil exploration abroad. Oil and gas companies can improve their competitive advantages by improving the financing policy of foreign oil and gas investment projects and refining the insurance system for foreign oil and gas investments.