Problems of Arctic Hydrocarbon Development in The Context of Modern Global Challenges: Development Potential and Industry Strategies

Abstract

Significant hydrocarbon raw material potential in the Arctic territories and complex technological solutions for its development dictate the need to solve extraordinary organizational, managerial and technical tasks of strategic nature. There are economic difficulties associated with oil and gas production in the Arctic fields and, in particular, in the development of offshore facilities. The article focuses on the sectoral strategies of oil and gas complex development, which should be balanced with regional and corporate strategies. Industry strategies for the development of the Arctic oil and gas complex detail a specific set of measures that fully reflect the technological and economic capabilities of domestic companies, it is especially important to assess the achievability of strategic goals in terms of the development of offshore resources. The purpose of this study is to summarize the strategic problems of the development of hydrocarbon resources in the Arctic with the identification of options for the development strategies of oil and gas industry complexes. The methodology of the research is based on the methods of strategic management. Within the framework of solving strategic problems and tasks, it is advisable to apply various scenarios using the methods of strategic alternatives, and, in particular, matrix methods. Matrix methods allow to use the results of the analysis and offer specific alternatives that can be used as a basis for strategic choice in the development of sectoral strategies of the oil and gas complex. The scientific results of the study are determined by the generalization of the problems of the Arctic hydrocarbon potential development and the development of alternative strategy options for solving technological and environmentally-oriented strategic problems. The article presents strategic problems of Arctic oil and gas fields development. The key economic, organizational, technological, social, environmental and geo-political problems are highlighted. Technological strategies largely depend on markets and the policy of technological sovereignty. Using domestic markets or turning to external markets seems to be an important strategic choice, as it determines the level of investment costs — in-house development or purchase of technologies on open markets. For the development of breakthrough technologies in offshore hydrocarbon production, it is possible to rely on the domestic technology market to develop new technical solutions and digital systems. Environmentally-oriented strategies are based on sustainability and efficiency criteria with economic or socio-environmental aspects being prioritized. It is revealed that “green” strategies can take place, but for the development of oil and gas industrial complexes it is important to maintain a balance between production development and environmental safety.