Gas Companies Research Articles

A comprehensive review of treasury management practices and their impact on corporate sustainability in emerging economies: Strategic insights from the oil and gas sector

Treasury management practices are critical for ensuring financial stability and fostering corporate sustainability, particularly in the volatile oil and gas sector of emerging economies. This comprehensive review examines the relationship between treasury management practices and corporate sustainability, focusing on strategic insights that can be drawn from the oil and gas industry. The review highlights the importance of effective cash management, risk assessment, and liquidity optimization as key components of successful treasury operations. The study categorizes treasury management practices into several essential areas, including cash flow forecasting, working capital management, investment strategies, and risk management frameworks. Each category is analyzed concerning its contribution to corporate sustainability, emphasizing the need for a holistic approach that aligns financial objectives with environmental and social considerations. The findings indicate that robust treasury management practices can significantly enhance operational resilience, improve resource allocation, and support long-term sustainability initiatives. Furthermore, the review discusses the challenges faced by oil and gas companies in emerging economies, such as economic instability, regulatory uncertainty, and fluctuating commodity prices. These challenges necessitate the adoption of innovative treasury strategies that not only safeguard financial assets but also promote sustainable business practices. By integrating sustainability metrics into treasury decision-making, companies can better manage risks associated with environmental regulations and stakeholder expectations. Additionally, the role of technology in modernizing treasury management is examined, particularly in terms of digital tools and platforms that enhance data analysis and decision-making capabilities. The review underscores the potential for fintech solutions to streamline treasury operations and improve transparency, thereby contributing to enhanced corporate sustainability. In conclusion, this review provides strategic insights into the interplay between treasury management practices and corporate sustainability in the oil and gas sector of emerging economies. The insights presented herein are intended to guide industry practitioners in developing effective treasury strategies that foster sustainable growth while addressing the unique challenges of the emerging market context.

Building a theoretical framework for financial risk management in emerging markets: Applying global best practices to the oil and gas industry in developing economies

Financial risk management is crucial for the sustainability and growth of the oil and gas industry in developing economies, where volatility and regulatory uncertainties present significant challenges. This abstract explores the construction of a theoretical framework for financial risk management, adapting global best practices to the specific contexts of emerging markets within the oil and gas sector. In developing economies, the oil and gas industry faces unique risks such as geopolitical instability, currency fluctuations, and regulatory changes. Effective financial risk management mitigates these risks through proactive strategies that balance risk exposure with strategic objectives. Adopting global best practices involves the integration of comprehensive risk assessment methodologies, scenario planning, and hedging techniques tailored to local market conditions. Key components of the theoretical framework include risk identification through comprehensive analysis of market, operational, and financial factors. This approach enables oil and gas companies to anticipate and mitigate risks before they escalate, ensuring financial stability and resilience in volatile environments. Furthermore, the application of global best practices in financial risk management fosters transparency and accountability, enhancing investor confidence and facilitating access to capital. By aligning risk management strategies with international standards and benchmarks, developing economy oil and gas firms can navigate uncertainty more effectively, thereby optimizing operational performance and sustaining long-term growth. However, challenges such as limited access to sophisticated financial instruments and expertise may hinder effective implementation. Overcoming these barriers requires capacity building, collaboration with experienced partners, and continuous adaptation of strategies to evolving market dynamics. In conclusion, building a theoretical framework for financial risk management in the oil and gas industry in developing economies is essential for mitigating volatility and maximizing opportunities. By applying global best practices tailored to local contexts, companies can strengthen their resilience, attract investment, and drive sustainable development in emerging markets.

Towards the design of a smart warehouse management system for spare parts management in the oil and gas sector

IntroductionThe oil and gas production industry requires rapid changing. As oil and gas companies around the world are called upon to decarbonize, several sectors within the industry are attempting to find new ways of working to achieve decarbonization. One of those sectors is spare parts warehousing. During the past decades of oil and gas production, spare parts warehousing has not been prioritized in optimization measures. Warehouses have been filled with material, all activities have been performed manually, and financial expenditure has been high. Now, a large oil and gas production company in Norway is looking to optimize its spare parts warehousing to streamline its logistics activities and increase sustainability.MethodThis study addresses the optimization ambitions of the company and proposes key design elements of a smart warehouse management system using Industry 4.0 technology implementation. The study is conducted by performing a review of relevant literature and company ambitions, before embarking on a qualitative design measure to contribute to the company’s innovative success.ResultsThe study proposes optimization of the warehouse activities goods receipt, issuing of stocked goods, and inventory count. Additionally, the digital supply chain of tomorrow and the technical architecture of a track and trace system in the warehouse is suggested.DiscussionThe study’s results can be used in practical implications and provide a foundation for future research. Future research is suggested to include extensive visual simulations, practical implementation studies, and studies on long-term effects of implementation.

Effects of royalty payment on petroleum profit tax evasion: evidence from the Nigerian non-renewable energy sector

AbstractThe impact of the tax regime on the non-renewable energy sector has been neglected in the current literature. The sector is reported to be at the heart of most oil and gas producing economies. Considering the immense contributions of this sector, the present study investigated the effects of royalty payments on petroleum profit tax evasion in Nigeria’s non-renewable energy sector. A survey, in the form of a questionnaire, was used to collect data from 312 oil and gas companies; while SPSS and PLS software were used to analyze the data. The results indicate that there is positive and significant relationship between tax rate, detection probability, and penalty, and petroleum profit tax evasion. Additionally, the result shows that there is a significantly negative relationship between royalty payment and petroleum profit tax evasion. The findings have significant policy implications for the non-renewable energy sector across the globe. The findings confirm the fact that higher tax rate, detection probability, and penalty, have a direct impact on petroleum tax evasion. The findings also call on policymakers to reconsider the level of royalty rates to a more reasonable level so as to reduce the extent of petroleum tax evasion among the oil and gas companies.

აზოტის გამოყენება ნავთობისა და გაზის ოპერაციებში

The article discusses several options for nitrogen application in the oil and gas industry. Nitrogen gas is useful in maintaining formation pressure in oil fields, expelling gas from the gas cap, stimulating steeply inclined formations, cyclic exploitation of gas condensate deposits, Completion of wells, Cleaning of wells with Coiled Tubing, Circulatimg low pressure reservoir wells with foam.Described experience of local oil and gas companies in Georgia utilizing nitrogen pumping in welltesting and stimulation.

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.

Analysis of Inventory Control in the Downstream Fuel Supply Chain : An Indonesian Prespective

This research focuses on determining the level of inventory in a downstream supply chain for fuel products in Indonesian oil and gas company prespective. The variability in supply and demand is a problem in maintaining the stability of services to the consumers. High inventory costs that are completely borne by the company are also a problem that needs to be controlled. Therefore, determining inventory levels is very important to mitigate the variability of supply and demand that occurs with optimum inventory costs. This research designs a probabilistic model by considering variability in supply and demand to determine safety stock so that the correct level of Fuel Product inventory at each Storage Point can be determined. This research method is quantitative research based on empirical data. It is hoped that the research results will be able to obtain inventory control which can be taken into consideration by oil and gas company in managing the downstream supply chain of fuel products.

The Coming of Age of Venture Capital Investing in the New Fields of the Emerging MOGI Sectors: A Snapshot for the Future: Part 2

Venture Capital (VC) has become a chosen tool of investment in the areas of business where there seems to be potent promise but yet immature in terms of market, customer acceptance and political dynamics. Such uncertainties make bankers both nervous and hesitant,and where the risk takers like venture capitals thrive. In the first part of the article we discussed about how mineral,oil& gas and energy companies are becoming both investors of VC and attractive destinations for investment by other VCs. The VCs are mostly either Private Equities (PE) or the venture funds of established companies. They mostly invest in emerging technologies and risky, yet promising, opportunities. In this part we discuss how the risks are assessed and mitigated, what takes one to be the VC fund manager and the current dynamics in the VC investments. Risky as they are, VC investors always look for reasonable profit to exit investments, for the next set of investors to pursue the opportunities with the omnipresent risks.

Culture of health as a strategy for designing and developing corporate welfare models

Improving population health requires the commitment of a multitude of community partners, including employers. Since 2008, successive economic crises have reduced the national health system's capacity to meet the needs of its citizens in Italy. ENI is an Italian oil company employing over 31,000 people in nearly 62 countries. In the Italian community of ENI, there are about 20,000 employees. Between 2022 and 2023, ENI made relevant services and goods available for each employee. This work aims to identify a framework to measure the culture of health in ENI. It is the first step in developing an in-depth analysis of the culture of health in ENI, which will be the subject of in-depth studies after this work. Today, promoting health cannot be the sole purpose of public healthcare systems in Western contexts. Italy is an emblematic context of these phenomena. The development of the corporate welfare case in ENI is an opportunity to reflect on the evolution of private expenditure concerning the interventions promoted by a multinational oil and gas company such as ENI towards its employees. In all this, the culture of health represents a valid approach to the design and the evolution of corporate welfare models over time. The idea of the culture of health is an essential framework that can support why companies must work towards complementarity in providing services and interdependence with public health systems. By incorporating strategies such as inclusive health education, community engagement and partnering with public health systems to address social determinants of health, companies can contribute to building a culture of health rooted in equity, providing employees with the resources and support needed for a better and more equitable life.

Energy transition in the oil and gas sector: Business models for a sustainable future

The global energy landscape is undergoing a significant transformation as industries shift towards more sustainable practices, driven by environmental regulations, societal pressure, and technological advancements. The oil and gas sector, traditionally dependent on fossil fuels, is at the forefront of this energy transition. This review explores the evolving business models that facilitate the industry's transition to a low-carbon economy, focusing on strategies for achieving sustainability while maintaining profitability. Key approaches include diversifying energy portfolios by investing in renewable energy sources such as wind, solar, and hydrogen, as well as enhancing operational efficiency through digital technologies like artificial intelligence and the Internet of Things (IoT). The transition is also marked by an increased focus on carbon capture, utilization, and storage (CCUS) technologies, which mitigate the environmental impact of traditional oil and gas operations. Business models are being reshaped to incorporate circular economy principles, where waste and emissions are minimized through innovation and resource optimization. Furthermore, partnerships between oil and gas companies and renewable energy firms are emerging as a critical pathway for mutual growth and sustainability. This energy transition also involves rethinking the workforce and reskilling employees for emerging sectors, emphasizing the need for adaptability in business models. Regulatory frameworks play a pivotal role in shaping these models, as policies increasingly favor green investments and low-carbon initiatives. As oil and gas companies diversify their portfolios, they are creating new revenue streams that align with global decarbonization goals while ensuring financial resilience. This study highlights how these innovative business models are setting the foundation for a sustainable future in the oil and gas sector, ensuring that the industry remains relevant in a rapidly changing energy ecosystem. Keywords: Energy Transition, Oil and Gas, Business Models, Sustainability, Renewable Energy, Carbon Capture, Circular Economy, Digital Transformation, Decarbonization, Low-Carbon Economy.

Implication Of Environmental Related Cost On Performance Of Oil And Gas Companies In Nigeria

The study examined the implication of environmental cost on performance of oil and gas companies in Nigeria. The objectives of the study are to examine whether environmental cost affects return on capital employed and market value added of oil and gas companies in Nigeria. Data for this study were retrieved from reports of the companies from 2013-2017 financial years and values for the qualitative data such as environmental regulatory cost (ERC) and environmental health and safety cost (EHSC) were measured using dichotomy procedures. Values were assigned from 0-5 based on the level of disclosure using global reporting index (GRI). Having examine the content of the financial report of the companies, the analytical technique used for this study was the panel regression method. The research results indicate that there exists a relationship between environmental cost and profitability of oil and gas companies in Nigeria. The study therefore recommended amongst others that Oil and gas companies should focus reasonable attention to addressing relevant environmental issues and cost involvement disclosed in their financial report for the purpose of profit measurement.

Деятельность российских нефтегазовых компаний в Арктике: теория и практика резильентности в эпоху декарбонизации

Addressing global climate change presents a shared challenge, particularly for the development of the Arctic Zone of the Russian Federation (AZRF) and for industrial companies operating in the region, including oil and gas producers. Given the strategic role of hydrocarbon development in the AZRF for ensuring Russia’s energy security and the responsibility of oil and gas companies in reducing greenhouse gas emissions, it is critical to examine their role in enhancing the resilience of the AZRF amidst global decarbonization efforts. This article aims to provide a theoretical and practical analysis of the relationship between organizational and territorial resilience in the context of climate change. It focuses on the measures taken by Russian oil and gas companies to reduce greenhouse gas emissions and minimize the anthropogenic impact of their operations in the AZRF. The empirical basis for this study is drawn from the corporate reports of the largest Russian oil and gas companies. Through a review of contemporary Russian and international research, key risks to the resilience of economic systems in the AZRF are identified. A conceptual framework is proposed, highlighting the role of oil and gas companies in supporting the resilience of the AZRF, particularly through decarbonization initiatives aimed at mitigating the effects of climate change, such as permafrost thawing. Content analysis has been used to categorize the environmental and industrial safety measures, as well as decarbonization efforts, undertaken by Russian oil and gas companies in the AZRF. The study concludes by outlining the various decarbonization scenarios and strategies implemented by these companies in the AZRF.

Оценка потенциального ущерба почвам от аварийных разливов нефти и нефтепродуктов на территории Арктического региона

The intensification of economic activities by oil and gas companies in the Arctic has significantly increased the risk of environmental damage, necessitating compensation for potential harm caused by these businesses. A major risk factor in this context is accidental oil spills, which are particularly challenging to predict, thereby complicating the assessment of their consequences and the development of preventive measures. The most advanced forecasting methods rely on probabilistic assessments of spill risk factors, which require special field studies and statistical data. This research considers the key approaches to the economic assessment of environmental damage, emphasizing the need to consider the unique characteristics of the Arctic.The goal of the study is to estimate the most probable soil damage from accidental oil spills using a simulation model. It will be especially relevant for territories where the area affected by accidental oil spills is considerable or has increased significantly over the past few years, according to available statistical data. In the Arctic, the Usinsky District of the Komi Republic is one such region. Using the case of this district, an assessment of potential damage is conducted for three scenarios with varying levels of pollution. The results enable an evaluation of potential damage, providing different values corresponding to multiple scenarios with distinct probabilities. The findings can inform oil and gas companies in developing preventive measures and assist regulatory authorities in determining appropriate environmental reparations from companies.

Разноуровневые стратегии развития: арктический нефтегазовый вектор

The balanced development of the hydrocarbon potential in the Arctic is currently a strategic priority for Russia. Given the present conditions of the global energy sector, alongside new geopolitical challenges and trends towards low-carbon and ecologically balanced development, there is a need for a system of coordinated strategies across the industry, regional, and corporate levels. To effectively develop Arctic oil and gas resources, it is necessary to ensure technological sovereignty, which involves equipping oil and gas companies with domestically produced equipment and software. Strategies should also focus on the development of industries that produce high value-added products, particularly in the petrochemical sector. Public administrators and corporate managers responsible for key decisions must have a clear, long-term vision for the development of the Arctic oil and gas sector and employ established methodological approaches in strategy design. The goal of this study is to substantiate the specific characteristics of multilevel strategies and assess the feasibility of using a matrix approach when designing strategic alternatives relevant to the current economic environment. The research methodology is based on the approaches, methods, and tools of strategic management and planning, with a particular focus on methods for designing strategic alternatives. The novelty of the research lies in the development of a system of criteria for comparing strategies and their target priorities at the industry, regional, and corporate levels. The study identifies current trends and challenges arising from the energy transition, stringent sanctions policies, and growing technological capabilities. It proposes an approach to designing alternative strategies of related and unrelated diversification for oil and gas companies. Developing a holistic concept of coordinated industry and corporate strategies is identified as a promising area for further research.

When Oil and Gas Companies Go to School

When Oil and Gas Companies Go to School

Harnessing the sustainable potential of groundwater in Saudi Arabia via remote sensing

Groundwater resources in water-stressed regions, such as the Middle East, face significant challenges due to low precipitation, high temperatures, and elevated evaporation rates, which are compounded by anthropogenic stresses. In this context, Saudi Aramco (the national petroleum and natural gas company of Saudi Arabia) has contributed in the search for potential groundwater sources to ensure an adequate supply of potable water for the country’s citizens, agricultural needs, and industrial usage. In this study, we combined geographic information system (GIS), remote sensing (RS) and analytic hierarchy process (AHP) techniques to evaluate the vulnerability of groundwater potential (taking Hail as a case study). With a total of 7 thematic layers (i.e., geology, slope, lineament density, land use/land cover, annual rainfall, drainage density, and soil texture), we found that groundwater potential zones with moderate to high coverage account for 91.9%, which is notably close to the borehole data, with a groundwater potential validation accuracy of 90.0%. The obtained results offer a crucial tool for decision-makers and managers, enabling them to develop timely protection and monitoring measures for groundwater resources.

A model for assessing the economic impact of renewable energy adoption in traditional oil and gas companies

The adoption of renewable energy presents significant economic implications for traditional oil and gas companies. This paper proposes a model for assessing the economic impact of integrating renewable energy into traditional oil and gas operations, focusing on cost efficiency, revenue potential, and overall financial performance. The model evaluates key metrics, including capital investment, operational cost savings, revenue generation from renewable energy projects, and potential impacts on profitability and shareholder value. By incorporating various renewable technologies such as solar, wind, and geothermal, the model provides a comprehensive framework for understanding the financial benefits and challenges associated with transitioning to cleaner energy sources. The model incorporates both direct and indirect economic impacts, such as reduced energy costs, enhanced energy security, and improved corporate reputation. It also considers the effects of regulatory incentives, including tax credits and subsidies, which can influence the financial viability of renewable energy projects. Additionally, the model examines potential risks and uncertainties, such as market volatility and technological limitations, which can affect the economic outcomes of renewable energy investments. Case studies of traditional oil and gas companies that have successfully integrated renewable energy are analyzed to illustrate the practical application of the model. These case studies demonstrate how companies have achieved cost reductions, diversified revenue streams, and enhanced their long-term financial resilience through renewable energy adoption. The paper concludes that while the initial investment in renewable energy technologies can be substantial, the long-term economic benefits—including cost savings, revenue growth, and alignment with sustainability goals—can significantly outweigh the challenges. By adopting the proposed model, oil and gas companies can better assess the economic implications of renewable energy integration and make informed decisions to drive sustainable growth and profitability.

Relationship between return on invested capital and market value of oil and gas companies

Subject. The article addresses approaches and methods to calculate the rate of return (profitability) on invested capital of oil and gas companies based on financial statements, taking into account the stock market conditions. Objectives. The study aims at reconciliation (elimination of gaps) of market value indicators and financial indicators of oil and gas companies, using the economic value added model. Methods. We apply methods of forecasting, financial and factor analysis, and statistical methods on the basis of financial statements figures of the studied companies. Results. We analyzed the dynamics of profitability indicators and cost of invested capital for oil and gas companies in comparison with their market capitalization for 2015–2022, identified key factors influencing changes in ROIC, offered an adjusted approach to calculating the indicator, including the initial cost of invested capital. We tested the methodology and provided explanation of its practical significance, using the case of historical financial data and market capitalization of ExxonMobil. Conclusions. The study enabled to confirm the hypothesis that it is necessary to calculate the cost of fixed assets by the amount of total actual investments, net of accumulated revaluations to calculate the return on invested capital. In the numerator of the formula for this indicator, it is advisable to use profit before interest expenses, depreciation, income tax, and exploration, less investments to maintain current assets, and in the denominator – invested capital net of cash, current and non-current non-debt liabilities.

Artificial intelligence for predictive maintenance in oil and gas operations

Oil and Gas companies are maximizing capabilities using AI in the area of predictive maintenance to create data-driven insights leading towards higher operational efficiencies and safety. AI-driven predictive maintenance means analyzing data collected from various sensors and equipment to predict when a machinery fault might occur. And this approach helps cut back on unanticipated downtimes and drops maintenance costs to increase the life cycle of key assets. AI driven systems with predictive analytics capabilities analyze equipment behavior for patterns, anomalies using AI techniques like machine learning algorithms, deep learning etc. Those methods enable detecting issues in early stages, so intervention can be done before the failure. The accuracy of learning models is enhanced by AI collaborating with IoT devices to provide real-time data and continuous monitoring.

Sand Production Prediction and Management Using a One-Dimensional Geomechanical Model: A Case Study in NahrUmr Formation, Subba Oil Field

Sand production in sandstone reservoirs is a complex problem for oil and gas companies. This problem can damage downhole equipment and surface production facilities. This paper presents a sand production case and quantifies sand risks for the NahrUmr formation located in Subbaoilfied.The risk of sanding or rock failure is commonly observed during production phases as well as drilling operations. A (1D) mechanical earth model was created using wireline log data and core data for estimating the formations mechanical properties.The extrapolation method is utilized for vertical stress prediction, whereas pore pressure and static Young’s modulus were calculated using Slowness Eaton method and John Fuller correlation respectively. The poro-elastic model was used to determine horizontal principal stresses and hydrocarbon intervals susceptible to sand production issues.The purpose of this study was achieved using Tech-Log software. Sand onset intervals are firstly predicted as an open hole using ten methods: Loading factor (LF), Critical drawdown pressure (CDDP), B-index, schlumberger (Sc), Elastic combination index (Ec-index), Interval Transit-Time (DTc), Total porosity method (PHIT), unconfined compressive strength (UCS), Shear modulus to bulk compressibility ratio (G/Cb), and shear failure method. Approximately ten methods refer to the same intervals that can produce sand. Secondly, sand depths were predicted by representing the well according to what actually existed as a cased hole by calculating the critical drawdown pressure (CDDP), which is calculated at various depletion rates (0%, 15%, 25%, and 35%) in order to measure the effect of reservoir pressure depletion on sand production. The results show that as the rock strength is increased, the amount of sand-free drawdown and depletion becomes larger. Also, a single-depth analysis was conducted for problem intervals, indicatg a sandwillproducefromdepth of 2527.7 m under certain conditions. Therefore, it is necessary to install sand control equipment in this well.