Oil and gas sector of Perm Krai: the actual status and prospects for development

Abstract

The oil and gas industry of Perm Krai is one of the core industries that determines the actual status and prospects for the social and economic development of the region. This article assesses the impact of the oil and gas industry on the social and economic development of Perm Krai. The author comes to the conclusion that the industrial production, and in particular the oil and gas complex, remains the basic economy sector of Perm Krai, which plays a leading role in income generation of the territorial budget. On the basis of the oil and gas industry it is possible to develop the accompanying sectors in the economy. In other words, it can become a locomotive for developing other economy branches. Trends in the oil industry development in the Perm Krai coincide with those typical for the Russian Federation as a whole. Therefore, the sanction measures could not fail to have an impact on the economy of Perm Krai in general and the activities of the oil industry enterprises in particular. The action of economic sanctions led to a reduction in oil extraction, accompanied by a price drop; volumes of export; the limitation of supplies of specialized equipment and technologies for the developing oil deposits and oil production. To overcome this situation in the Perm Krai, the following measures can be proposed: creation of the new competitive capacities (which requires the additional investment sources) and creation of a petrochemical cluster.