The promotion of leasing in oilfield services as a mechanism for the innovative development of the oil and gas industry

Abstract

Subject. This article focuses on the oilfield service market and innovative development mechanisms for Oil & Gas in particular. Objectives. The study provides the rationale for leasing as a practical mechanism for encouraging the innovative activity of Oil & Gas companies. Methods. The study is based on methods of the analysis, systematization, comparison and matching. Results. We report on the analysis of the development of the oilfield service market as a crucial constituent of the oil and gas industry. The article presents indicators and trends in the development of the oil and gas market worldwide and in Russia. We describe distinctions of the oilfield service market, classify key lines of activities in the industry. The article spotlights key issues of the oilfield service market and displays the current factors shaping trends in the oilfield market development. We analyzed innovation indicators in the industry, the applicable lease schemes, and classified lease companies operating in the oil and gas market. Conclusions and Relevance. The predominance of short-term contracts turns to be a key issue of the oil and gas industry, since companies cannot be assured that technical retrofitting costs be repaid and justified. There should be further research into the practical potential, expanded development and practical guidelines for leasing schemes in the oilfield service market, which will push the innovative activity of companies operating in the industry.