Domestic Oil Industry Research Articles

Technological sovereignty as a factor of competitiveness of oil and gas companies of the Russian Federation

Aim. To investigate the importance of technological sovereignty for strengthening the competitive positions of Russian oil and gas companies.Objectives. To identify the key factors that determine the level of technological independence of oil and gas companies; to assess how these factors affect their ability to compete successfully at the national and international levels.Methodology. The research uses general scientific methods of analysis and synthesis using a systematic approach.Results. The essence of technological independence as a factor in the development of competitiveness of companies in the oil and gas sector was analyzed. The assumption is formulated that the achievement of technological sovereignty allows companies to mitigate risks arising from external factors, including international sanctions and restrictions on access to advanced foreign technologies. Several strategic initiatives have been proposed to strengthen the technological sovereignty of the domestic oil and gas industry: training of highly qualified personnel, introduction of tax incentives and subsidies from the state for companies, creation of special economic zones or technology parks, protection of intellectual property and support for patent activity.Conclusions. Technological independence is the most effective method in the context of the struggle of Russian industrial companies against external challenges: sanctions and changes in global energy markets. The development of national technologies in the oil and gas sector due to the synergetic effect has a positive impact on strengthening the competitive advantages of Russian national companies in both domestic and international markets. In order to ensure technological sovereignty, special attention should be paid to the development of strategic risk management mechanisms, as well as effective communication models between the state, industry, and science.

Anti-Russian sanctions in the domestic oil and gas industry: problems and prospects

The relevance of the topic of the scientific article is determined by a number of circumstances related to the fact that the oil and gas industry is one of the main sectors of the Russian economy, as well as an important component of domestic exports. The sanctions of Western countries on the economy of the Russian Federation have had a noticeable impact on the operating conditions of the industry and the requirements imposed on it by the world and the national economy. The article formulates the challenges facing the industry, which is under sanctions, and shows the possibilities of its development in 2024 and in the future. According to the author, the effectiveness of industry management, improvement of technologies, logistics, as well as the search for non-traditional sales markets are of fundamental importance today. The purpose of the article is to identify the problems of the domestic oil and gas industry that arose in the sanctions conditions, to identify realistic directions for its development. The subject of the study is the hydrocarbon industry of the Russian Federation, the object of the study is changes in the domestic energy sector under the influence of Western sanctions. The article used analytical, comparative, empirical methods and visualization. It is shown that along with the development of traditional energy in the Russian Federation, it is important to pay close attention to the intensification of activities in the field of renewable energy sources. A number of measures have been proposed to reduce the negative impact of sanctions on the hydrocarbon segment of the domestic economy.

Soviet Energy Policy: Lessons for Modern Russia

The study examines the energy strategy and achievements of the Soviet Union in building the world’s largest oil and gas complex (OGC). The paper analyzes the causes of decline in the domestic oil and gas industry after the Soviet era and proposes recommendations for enhancing Russia’s energy policy, considering experiences. Within the framework of the energy policy of the Russian Federation, the author discusses a diverse set of state tasks. These tasks encompass ensuring stable growth in proven reserves, optimizing hydrocarbon resource usage, fostering progress in new oil and gas regions, and developing industry personnel through training programs.

Royalty Wars: The Dark Side to Raising the Minimum Royalty Rate for Oil and Gas Leasing on Federal Land

In 2022, the Inflation Reduction Act took marked steps toward changing the course of the oil and gas industry for the first time in over 100 years, requiring that all federal oil and gas leases issued for the following decade have a minimum royalty rate of 16.67%. This paved the way for a major adjustment in the oil and gas industry, which has seen a 12.5% minimum royalty for the past century. In 2023, the Department of the Interior proposed to permanently codify these changes, citing purposes of ensuring a fair return to taxpayers and protecting the environment. This Article argues that the royalty provision in DOI’s proposal, if passed through Congress, will lead to harmful effects on the economy and production while failing to fulfill its purpose of protecting the environment. Instead of raising the minimum royalty, which will inevitably stunt the growth of the domestic oil and gas industry, agencies should regulate strategically to both promote domestic production and reduce the industry’s emissions footprint on the environment

Indonesia's Strategy in Dealing with The European Union Green Protectionism in The Palm Oil Trade

The presence of palm oil in the international market is relatively competitive. As a producer of 59% of global palm oil, Indonesia faces green protectionism in the EU market. It is used for environmental protection, anti-deforestation, and global warming control. Therefore, this study analyzes Indonesia's response to EU market protectionism. The study uses the perspective of protectionism and the dynamics of state adjustment behavior in conflicts of national interest. The country's adjustment strategy theory is complemented by the behavioral choice strategy theory in facing international sanctions. The authors use qualitative methods, with literature study, observation, and supplemented interviews. In dealing with palm oil trade barriers, Indonesia initially utilized the domestic offensive strategy to deal with the restrictions, changing domestic palm oil management policies, including forest moratorium, terminating palm oil permits, adopting the ISPO certification system, and downstream the domestic palm oil industry. However, it was ineffective, and various restrictions became more vigorous, so Indonesia implemented an international offensive strategy, encouraging changes in international regulations and eliminating protectionism against palm oil. Nevertheless, the resistance has yet to be very successful. Therefore, Indonesia must perform proactive conformance to find new markets for Indonesian palm oil.

Formation and development of North Caucasus oil industry (to the 130th anniversary of Grozny oil industry)

Background. The author presents an analysis of the emergence and development of the oil industry in the Kuban and Terek (Grozny) regions in the North Caucasus during 19th—21st centuries, paying particular attention to the Grozny oil industry on the occasion of its 130th anniversary. The process of developing the North Caucasus oil industry is divided into periods depending on the governmental and administration system at different stages of Russian history (Royal Russia, USSR, Russian Federation). As a result, there main stages are defined: 1st stage (Royal Russia for the period of the 19th — early 20th centuries); 2nd stage (USSR); and 3rd stage (Russian Federation). The most important historical events in the course of evolution of the Kuban and Grozny oil industry are given in chronological order. The role of public administration in different historical periods, including revolutionary and war years, economic crisis, and wartime devastation, is shown. The invaluable contribution of Grozny engineers, scientists, and workers of the oil production, oil refining and petrochemical industries to the development of the domestic and world oil industry is demonstrated.Aim. To analyze the history of formation and development of the North Caucasus oil industry taking into account the role of public administration.Materials and methods. A large amount of information on Russian history and the history the North Caucasus oil industry was analyzed.Results. The process of developing the North Caucasus oil industry is divided into periods depending on the governmental and administration system at different stages of Russian history.Conclusion. To identify the main factors influencing the development of the North Caucasus oil industry, i.e., technological progress and public administration. The latter played a fundamental role in the development of the oil industry in the Soviet Union and the Russian Federation.

STUDY OF PHYSICAL AND MECHANICAL PROPERTIES OF PETROLEUM BITUMEN

The article presents the results of scientific research on the use of bitumen compositions developed on the basis of raw materials and wastes of domestic oil, gas and petroleum industry in the production of new types of construction waterproofing materials, as well as on the determination of their physical-mechanical and operational properties.

A nonlinear autoregressive distributed lag analysis on the macroeconomic effect of global oil price in the Philippines

AbstractStudies have pointed out that oil price volatility influenced economic output and growth among developing and net oil‐importing countries. More than a quarter of the Philippines’ energy demand depends on crude oil, and 99% of the crude oil demand is imported mainly from the Middle East. This study was conducted to determine if there is a nonlinear or asymmetric output response to oil price movements and examine which economic sector in the Philippines is the most vulnerable to oil shocks. This contributes to the literature for a case of developing, oil importing, inflation targeting and post‐oil industry deregulated economy. A nonlinear autoregressive distributive lag model was applied to observe quarterly data from 1998:Q1 to 2019:Q4 of the relevant economic variables. Results revealed an asymmetric effect of non‐oil variables on sectoral performance. World oil prices affect economic sector outputs symmetrically or linearly. The service sector is found to be the most vulnerable sector to oil price shocks. The absence of asymmetry can be attributed to increased competition in the Philippines’ domestic oil industry brought about by oil market deregulation. Improving the energy mix and reducing oil intensity is vital to offset any oil price shock transmission to an oil‐importing economy like the Philippines.

The assessment of the level of digitalization and digital transformation of oil and gas industry of the Russian Federation

Digitalization and digital transformation of companies have turned from global trends to an urgent need. Thanks to digitalization and digital transformation, organizations can overcome the times of crisis, the times of lockdowns with less losses and respond more effectively to any adverse changes in the external environment. The assessment of the level of digitalization and digital transformation allows to determine how fast the processes of introducing digital technologies and optimizing processes with digital solutions proceed, both in companies and across the industry as a whole. The article provides an analysis with the systematization of foreign and domestic methods, methodological approaches, methods for assessing the digitalization level and digital transformation, as well as reveals their positive and negative aspects. Based on a comparative analysis, an improved author-developed methodological toolkit is proposed for assessing the level of digitalization and digital transformation, alleviating the disadvantages of the existing methodological experience. The approbation of the author-developed methodological toolkit was performed using the oil and gas industry as an example; the following companies, being the industry leaders, were analysed: PJSC “Lukoil”, PJSC “NK “Rosneft”, PJSC “Gazprom”, and PJSC “Tatneft”. According to the results, the digitalization and digital transformation processes of the domestic oil and gas industry are insufficiently dynamic. It was found that in the period from 2016 to 2020, the Russian Federation industry leaders were in the following order from the most advanced to the least advanced in terms of the digitalization level and digital transformation: PJSC “Gazprom” topped the list; PJSC “NK “Rosneft” was second; PJSC “Lukoil” was the third largest company, and PJSC “Tatneft” held the fourth position.

Current state and prospective development directions of the domestic market of oil and oil fat products: a qualitative aspect

The main results of the enterprises activities of the domestic oil and fat industry in 2020—2021 are shown in the articles. The profitability indicators of the production of oil crops of agricultural enterprises and farms of Ukraine by regions in 2020, the sown area under soybeans and sunflowers by regions of Ukraine for the 2021 harvest are studied, as well as the export of oilseeds in 2020/2021 compared to the 2019/2020 marketing year. It was emphasized that oilseed crops in Ukraine are traditionally the most profitable of all plant products, which is due to their high liquidity and demand from both exporters and the processing sector. export of vegetable oil and protein grist from Ukraine during the specified period was investigated, and the main reasons for changes were determined. The production of oil and fat products in Ukraine in 2020—2021 was analyzed, the the supply/demand balances of sunflower seeds and vegetable oil, the main trends in the functioning of the relevant market were determined and the priorities of future development were substantiated. The price policy of industry enterprises and the reasons for the increase in the price of oil were studied. The processsing capacities of the main types of oil crops, oil and deep processing products were evaluated, and the leaders of the respective markets were determined. It was emphasized that the further market development of oil and oil-fat products of Ukraine will take place in the direction of improving the quality of manufactured products in terms of their safety and expanding exports. This is due to the further application of international standards at the enterprises of the industry and their timely reaction to changes in the regulatory and legal framework. New changes in FSSC 22000 scheme (version 5.1) are highlighted.

Recent Development of Smart Field Deployment for Mature Waterflood Reservoirs

In the petroleum industry, artificial intelligence has been applied in seismic and logging interpretation, accurate modeling, optimized drilling operations, well dynamics prediction, safety warning, etc. However, field-scale application and deployment remain a challenge due to the lack of sufficiently powerful algorithms for the integration of multi-granularity data in the time and space domain, for the construction of a deep-learning network able to represent the evolution of well and reservoir dynamics, and finally the lack of investment in surveillance data acquisition. This paper offers a concise review of smart field deployment for mature waterflood reservoirs, including the current status of data foundation construction, and the research progress for applied AI algorithms, as well as application scenarios and overall deployment. With respect to data, the domestic and international oil and gas industry has completed or at least started the large-scale construction and deployment of lake data. However, the data isolation phenomenon is serious in China. Preparation for the integration of new monitoring data for the overall research of reservoirs is insufficient. With respect to algorithms, data-based and model-based AI algorithms have been emerging recently, but the development of the overall proxy model for rapid prediction and automatic model calibration is still in the preliminary period. For application scenarios, relatively simple and independent applications related to geophysical interpretation and production engineering are continuing to emerge, while large-scale reservoir and field application require substantial investment in data acquisition, game-changing algorithms with cloud-based computing architecture, and top-down deployment.

Scenarios of the domestic oil and fat industry

The production and industrial processing of oil-containing raw materials is a strategic task for the economy of the Republic of Kazakhstan. Domestic producers have the opportunity to dominate not only in the Central Asian region, but also to expand export flows along the developed transport routes. In addition, development of oil and fat industry of the republic will significantly reduce the impact of foreign intervention supplies on domestic market. The goal – is to identify the trends of main world players, as well as to determine the growth points of oil and fat subcomplex. The study used methods – to analyze the world branch economy: information from specialized sources and publications, official statistics from the US Department of Agriculture, foreign agricultural service of the sector "Oil crops: world markets and trade", consultations with Kazakhstani analysts in the field of agriculture, materials on the topic from open sources. Results – key global trends are identified, the average per capita consumption of vegetable oils in Kazakhstan is determined. Soybean, palm, sunflower, rapeseed and safflower are the main oil crops in the world and local space, the importance of legumes is noted. Besides exotic ones - palm trees and olives, almost all oilseed plants, which determine the global industry structure, are grown in the country. In terms of production and export of linseed oil and oil seeds, Kazakhstan producers are in the world's leading positions. The influence of restrictive anti-covid measures on production of vegetable oils is shown. An example of wholesale and retail trade is given, where a fixed trade margin for retail goods is applied. Conclusions – in the Republic of Kazakhstan there is a significant potential that can provide a dominant position in regional market and can become a catalyst for inter-industry mutually beneficial relations in food sector, fodder production and animal husbandry.

Presidential Policies’ Effects on Oil and Gas Price and Productions Within the United States from 1977-2021

Amidst the ongoing COVID-19 pandemic, the contentious U.S. 2020 presidential election featured candidates with quite different stances on regulating the oil and gas industry, leaving many to question the longevity of fossil fuel use. However, little research explores the relationship between presidential policies and the oil market. In this paper, extensive research into presidential energy policies and their effects on domestic oil prices and production dating back to 1977 helps us identify whether we can predict the industry’s future under Joe Biden’s administration. The paper’s results suggest the domestic oil industry is more dependent on external foreign events – with presidential policies offering almost negligible effects on prices and production.

Green hydrogen production potential in West Africa – Case of Niger

Niger offers the possibility of producing green hydrogen due to its high solar energy potential. Due to the still growing domestic oil and coal industry, the use of green hydrogen in the country currently seems unlikely at the higher costs of hydrogen as an energy vector. However, the export of green hydrogen to industrialized countries could be an option. In 2020, a hydrogen partnership has been established between Germany and Niger. The potential import of green hydrogen represents an option for Germany and other European countries to decarbonize domestic energy supply. Currently there are no known projects for the electrolytic production of hydrogen in Niger. In this work, potential hydrogen demand across electricity and transport sectors is forecasted until 2040. The electricity demand in 2040 is expected at 2934 GWh and the gasoline and diesel demand at 964 m3 and 2181 m3 respectively. Accordingly, the total hydrogen needed to supply electricity and the transport sector (e.g. to replace 1% gasoline and diesel demand in 2040) is calculated at 0.0117 Mt. Only a small fraction of 5% of the land area in Niger would be sufficient to generate the required electricity from solar PV to produce hydrogen.

IMPROVEMENT OF DRILLING REAGENTS BASED ON STARCH

he article provides an analysis of the current state of the Kramal processing industry of the Republic of Belarus, the dynamics of the production of native starch, the volume of exports and imports of modified starches. One of the areas of use of modified starch is the production of drilling reagents on its basis, intended
 for use in the oil and gas industries, as well as in geological exploration. They have great potential to reduce the import dependence of the domestic oil and gas industry, and also have an export potential, especially in the North.
 The composition of the mixtures obtained by specialists of RUE “Scientific and Practical Center of the National Academy of Sciences of Belarus for Food” samples of drilling reagents, as well as the main
 technological parameters for obtaining a drilling agent with the addition of dextrin, sodium chloride and Osnopak NO.

The Produced Water Conundrum Grows Across Unconventionals

Shale players have a love-hate relationship with water. It’s an essential ally going into downhole to help proliferate fractures in the subsurface and free up stuck hydrocarbons. It’s a parasite coming out - a briny byproduct that can easily outpace oil production from any given well. Likewise, operators must deal with water management on dual fronts. The first is sourcing the water to be used in the fracturing of the well. Second is finding the right solution for the flowback and formation water coming out of the well. Early on, the answer for the former was freshwater sources. However, once the strain set in from general scarcity, drought, environmental concerns or the like, industry started looking hard at the recycle and reuse of produced water - a solution where the problem becomes the answer. Water recycling rates vary widely between unconventional basins. For the domestic oil industry, data provider IHS Markit forecast in an April 2020 report the vast majority of wastewater leaving an oil field in 2022 will still not be recycled. It will instead be injected into disposal wells, which is currently the most common practice for produced water management. This option is costly and risky, especially for wells that are located some distance from the nearest disposal well. It has also come under increased scrutiny because of the potential effects of disposal well use on the surrounding area’s seismic activity. “Going back to the beginning of unconventional resource production, the focus was understandably on the water needed for drilling and completions,” Paola Perez-Pena, a principal researcher at IHS Markit, commented in an analysis. “Now that there is a considerable, established production, operators are realizing the extent to which produced water is not only a sizable matter, but an ongoing and essentially, perpetual one.” Produced water is a mix of the water pumped down the well to assist with fracturing plus residual drilling fluid and formation water. On average, with every barrel of oil produced in the US, more than 4 bbl of wastewater is produced, though that number varies from basin to basin. “With water, what you find is producers consider a number of different piping configurations, storage, and disposal well options, as well as reuse opportunities,” said John Walsh, principal technologist for Worley Advisian and author of the book, Produced Water. “There’s no one single strategy or approach that’s going to solve the water problem. There is no silver bullet.” According to an industry brief by Raymond James in July 2019, pre-pandemic US oilfield water production was already a whopping 50 million BWPD. For scale, this amount of water could cover more than 8,000 football fields with a foot of water, every day. The investment bank estimated just under half of the total produced water came from horizontal basins, despite making up close to 80% of onshore crude production. The report forecast that the total volume of produced water from major oil basins in the US could grow to more than 60 million BWPD by 2030 (Fig. 1).

Передовые практики нефтегазовых компаний по освоению газовых месторождений на арктическом шельфе

The development of the hydrocarbon potential of the Arctic shelf is one of the priority tasks for Russia, forming the conditions for its strategic presence in the region. Russia's official energy documents stipulate the need to increase oil and gas production in the Arctic, including offshore production, to ensure the stable operation of the country's oil and gas complex in the long term. However, the development of hydrocarbon fields on the Arctic shelf is a serious technological challenge for the domestic oil and gas in-dustry. While offshore oil production in the Russian Arctic is already underway, natural gas production remains a promising future target. The article analyses the current gas projects on the Arctic shelf in terms of their technological complexity and unique solutions, and the strategies of operators to attract foreign participants to the project. We consider these in the contexts of technological issues, organizational features, securing foreign investment. The author believes that the provisions and conclusions of this study will help add to the comprehensive picture of the foreign oil and gas companies experience engaged in natural gas production on the Arctic shelf, which will minimise the errors and risks in the development of hydrocarbon resources on the Russian Arctic seas shelf.

Stateczność otworów w warstwach łupków oraz węgli

This paper presents a simple model which can be used to calculate the following values: critical depth for which the well integrity is preserved in a shale or coal horizon with actual shale/coal mechanical parameters, actual mud density and reservoir parameters; minimum mud density at which stress concentration at the wellbore wall is below the allowable limit for a given rock’s mechanical parameters, formation pressure gradient, and overburden pressure gradient; mud density required for the preservation of shale/coal integrity at the wellbore wall at any depth, assuming that the strength parameters of shale or coal, formation pressure gradient, and overburden pressure gradient are constant. The appropriate equations were derived using the maximum principal strain hypothesis, which holds for brittle materials. It was also assumed that the radial pressure at the borehole wall is caused by the weight of overburden rocks. The author’s intention was to provide formulas which are as simple as possible and which can be easily used in practice. The final equations were based on the solution to the Lame problem, which was adopted to represent a vertical drilling well with a circular cross-section and filled with mud whose hydrostatic pressure is assumed to oppose the pore pressure. Included are effects of silt swelling pressure, overburden pressure, mud density and the mechanical properties of the rock – including the unconfined compressive strength and Poisson’s ratio. In the case of shale or silty coal layers, the swelling pressure increases the volume of the clay minerals in the pores by diffusion the mud filtrate, which reduces the pore volume and increases the pore pressure, and therefore impacts the calculations. Presented model allows for derivation of the Hubert–Willis formula for fracturing pressure or fracture pressure gradient, which are commonly used in the oil industry. The calculation results are presented using data from the domestic oil industry and data from one of the Polish coal mines.

Climate risk to peanut cultivation in Brazil across different planting seasons.

Peanuts are widely grown in Brazil because of their great importance in the domestic vegetable oil industry and the succession of sugarcane, soybean and maize crops, contributing to soil conservation and improvement in agricultural areas. Thus, the present study aimed to determine the zoning of peanuts' climatic risk by estimating the water requirement satisfaction index (WRSI) for the crop in Brazil. We used a historical series of data on average air temperature and rainfall between 1980 and 2016. Reference evapotranspiration was estimated using the method of Thornthwaite, and we subsequently calculated crop evapotranspiration and maximum evapotranspiration. Water balances for all stations were calculated using the method of Thornthwaite and Mather, with an available water capacity in the soil of 15, 30 and 45 mm. The definitions of suitable, unfit and restricted areas and the planting season were performed using the WRSI. Brazil has low climatic risk areas for growing peanuts throughout the year, except for winter. The country reveals that 88.19%, 97.93%, 99.16% and 39.25% of its area is suitable for planting peanuts on planting dates in spring, summer, autumn and winter, respectively. Brazil has a large part of the areas favorable to the planting of peanuts. The maximum availability of soil water at a depth of 15, 30 and 45 mm does not influence regions with respect to peanut growing in Brazil. The states of Piauí, Ceará and Bahia are the most unsuitable on the winter planting date, with an average WRSI of 0.22. © 2021 Society of Chemical Industry.

ҚАЗАҚСТАНДАҒЫ МҰНАЙ-ГАЗ САЛАСЫ ДАМУЫНЫҢ ҚАЗІРГІ ЖАҒДАЙЫ

The article describes the current state of the domestic oil and gas industry. The volume of crude oil and natural gas production in the oil and gas industry is analyzed. The analysis of the gross output of natural gas and oil production, including gas condensate by region, is given and carried out. The number of employees in the main activity is given. The average monthly salary of employees in the main activity of the industry is determined.