Russian Oil Industry Research Articles

The Russian oil industry restructuration: towards the emergence of western type enterprises?

The Russian oil industry has undergone fundamental changes since the collapse of the Soviet Empire and its bureaucratic administrative structure, dominated by its various Branch Ministries. The monopoly in the Soviet oil industry has now been replaced by a number of “oil companies”, some of which are very powerful, the best known of them being Lukoil. These “joint stock companies” are the product of a reform aimed essentially at implanting, out of all the numerous organisational arrangements developed in the West, the model of the vertically integrated private firm. Beyond the legal reforms in the Russian oil industry sector, however, the nature of the organisational model that has actually emerged in Russia begs several questions. Many entities, which are complex and highly diversified, are involved in this industry. There are, of course, the many privatised structures in which the banks sometimes carry a considerable amount of weight. There are also some vertically integrated organisations, but the degree of integration is variable and their method of centralisation is based on a specific form of economic logic. It should not be considered, however, that these “actors” are similar to capitalist-type private enterprises, whose behaviour is regulated by the demands of international competition. Reform of property rights has not been sufficient to create true private enterprise in Russia. This assertion is borne out by several elements, including the Russian economic situation itself. Financial-industrial groups in the oil industry have, first and foremost, to organise and adapt themselves to deal with the essentially non-monetary relationships such as barter, interentreprise credit and non-payment, which are becoming more and more dominant in the Russian economy today, as the recent financial crisis shows. Thus, beyond the change in formal organisation that the various methods of privatisation show, the way in which the industry behaves is still regulated to a significant extent by planned economic relationships and not by efficiency and profitability strategies based on reducing costs. On the other hand, the “survival” strategies are based on the willingness to maximise exports, this being based on a “quantitative production development” logic. They are written into the particular kind of compromise arrived at between the State, the banks, the regions, the workers and the oil joint stock companies, which could be summarised in the following equation: foreign currency in exchange for non-payments and for preserving jobs in the oil industry's holding companies. The financial crisis in Russia has clearly shown how fragile this system is, and has to some extent shattered the compromise already weakened by developments in international markets. The decrease in foreign currency revenue, brought about by the fall in international oil prices, has clearly shown the structural weaknesses in an oil industry that is still conspicuously beset by heavy production costs, costs that are proving a serious hindrance to its competitiveness. The future of the industry must be in serious doubt if, despite the reforms introduced, it does not continue along the path of major restructuring.

Joint Management of Oil and Gas Resources in Russia

A Norwegian political scientist and Russian advisor to regional authorities in West Siberia, both long-time analysts of the Russian oil and gas industries, examine the role played by hydrocarbon resources in the evolving power-sharing relationship between Russia's regions and the Russian Federation Government in Moscow. A specific focus is on the country's leading oil- and gas-producing regions—the Khanty-Mansiysk and Yamal-Nenets autonomous okrugs, respectively, with coverage extending to the fall of 1998. Implications of changing power relations between the regions and new trans-regional oil and gas companies are investigated as well. Journal of Economic Literature, Classification Numbers: H77, L71, Q40. 41 references

Production of the Serovsk Metallurgical Plant for the Russian oil industry

Production of the Serovsk Metallurgical Plant for the Russian oil industry

Abstract: Environmental Regulations and the Oil Industry in Russia - A Western Perspective

Abstract: Environmental Regulations and the Oil Industry in Russia - A Western Perspective

Russian Crude Oil Production in 1996:Conditions and Prospects

A noted Western specialist on the energy industries of the former USSR assesses trends in the production of oil (and gas condensate) in the Russian Federation in 1996 and surveys prospects for future performance in the oil sector based on recent developments in the industry. Special emphasis is placed on the effects of the continued evolution of the organizational structure of the Russian oil industry in the post-Soviet period, as well as the impacts of change in energy pricing policies on demand and oil-sector revenues. The coverage concludes with a near-term forecast of output for the Russian Federation up to and including the year 2000. 2 figures, 10 tables, 37 references. Journal of Economic Literature, Classification Numbers: L71, L95, Q40.

Foreign investment in Russia: The case of the oil industry

THE RUSSIAN OIL INDUSTRY is in desperate need of investment. Output has fallen by over 45% since the peak year of 1987, and could fall still further if major financial commitments are not forthcoming. Domestic firms, starved of cash, and often lacking the appropriate technology and expertise, are unlikely, however, to be able to turn the industry around by themselves. Instead they will need to enter into partnerships with Western oil companies, which, attracted by Russia's skilled labour force, its relatively low production costs, and, above all, its huge reserves of oil, are ready to make major investments. It is widely accepted that such co-operation could benefit both sides. Projects could generate enough revenue to compensate both the foreign oil companies and their local partners, in the form of profits, and the Russian government, through tax revenues. Increased exports would improve Russia's trade balance and make it more able to service its foreign debt; the additional tax receipts would help to balance the state budget, and facilitate macroeconomic stabilisation. Furthermore, Russian equipment suppliers would receive additional orders, employment would be created for Russian workers, and the local economies of the oil-producing regions would benefit generally from large inflows of foreign money. Western energy consumers and governments would gain too, from added insurance against any future tightening of world oil markets and higher world prices. Yet, despite all these benefits, very little investment has actually taken place. By the summer of 1995 no more than $1-2

96/01359 Brown coal liquefaction (BCL) process. Synthesis of transportation liquid fuel by hydrogenation of brown coal

This paper deals with the current change of the institutional and organizational framework of the Russian oil industry. Regarding this evolution, the main characteristic is the increasing involvement of national oil companies in the upstream activities. The point is to explain this reorganization by relying on the New Institutional Economics framework. These theoretical works highlight that institutional environment and governance structures complement each other. We argue that the current reorganization in an attempt to increase the coherence of the institutional arrangement governing the transaction between the Russian state and the private oil companies.

Characteristics of designing, planning, and technology of constructing structures for developing Arctic fields

The Russian and world offshore oil and gas industry has gained considerable experience in developing the shelf of seas with a temperate climate, but it does not have a developed technology and all necessary tested technical means for large-scale organization of exploration and exploitation in waters of arctic seas. Therefore, at present engineers are intensely searching for optimal designs for creating ice-resistant structures able to operate under harsh arctic conditions and have high reliability and long life. For convenience of analysis of the design features of offshore oil- and gas-field hydrotechnical engineering structures (OOGSs), it is necessary to classify them primarily according to the technological tasks set before them. It is known that the design of OOGSs consists of such components as the platform superstructure (PS), support part (SP), and foundation each of which has fundamental design features. The hydrometeorological factors are the main ones when determining the design features for the support part of OOGSs. Geological-engineering factors affect the selection of the type of OOGSs and are the determining factors of the design of the foundation of the structures. The results of analyzing the problems make it possible to single out the primary scientific-technical problems aimed at the accomplishmentmore » of tasks related to the creation of OOGSs for developing hydrocarbon resources of the arctic shelf.« less

Observations on the Reorganization of the Russian Oil Industry

A Norwegian energy economist, and a Russian academician/advisor to the Tyumen' Oblast government, both long-time analysts of the former Soviet and now Russian oil industry, survey major development...

Le secteur énergétique en Russie depuis 1991

The energy sector in Russia since 1991. Power production in Russia (oil, coal, electricity) has fallen significantly since 1990 ; only that of natural gas is being maintained. On the other hand, there was a marked increase in exports in 1992, reflecting the end of the State monopoly, and the freeing of prices. The victims of these contradictory developments are the other republics of the former USSR, who are experiencing a serious drop in their fuel deliveries. There is, in the present study, a more detailed analysis of the Ukrainian situation, since the Ukraine has some retaliatory powers in dealing with Russia, and has been able to delay, though not entirely to prevent, this development. When it comes to the oil industry in Russia, and its distribution, while extraction is intensely concentrated in the region of Tyumen (Western Siberia), refining follows a pattern of distribution more or less corresponding to its end use. It may be concluded that the distribution network is still functional. On the other hand, prices may differ widely from one region to another. In other respects, the oil industry has a significant effect on the overall standard of living of the regions where it has been established : there is a noticeable correlation between the development of wages in these regions and the level of fuel prices. Thus, we are at present witnessing a large-scale redistribution of resources among the republics of the former USSR, and among the regions or social groups of Russia, consequent upon developments in the energy sector.

Russian Oil Industry and Foreign Investments: Legal Aspects and the Problem of Business Risk

(1993). Russian Oil Industry and Foreign Investments: Legal Aspects and the Problem of Business Risk. Journal of Energy & Natural Resources Law: Vol. 11, No. 4, pp. 248-261.

The Russian Rockefellers: The Saga of the Nobel Family and the Russian Oil Industry

The Russian Rockefellers: The Saga of the Nobel Family and the Russian Oil Industry

The Russian Rockefellers: The Saga of the Nobel Family and the Russian Oil Industry

The Russian Rockefellers: The Saga of the Nobel Family and the Russian Oil Industry

The Russian Rockefellers: The Saga of the Nobel Family and the Russian Oil Industry. By Robert W. Tolf. Stanford, California, Hoover Institution Press, 1976. Pp. xv + 269. $14.95.

The Russian Rockefellers: The Saga of the Nobel Family and the Russian Oil Industry. By Robert W. Tolf. Stanford, California, Hoover Institution Press, 1976. Pp. xv + 269. $14.95.

Robert W. Tolf. The Russian Rockefellers: The Saga of the Nobel Family and the Russian Oil Industry. Stanford: Hoover Institution Press, Stanford University, 1976, xv, 269 pp, $14.95. U.S.

Robert W. Tolf. The Russian Rockefellers: The Saga of the Nobel Family and the Russian Oil Industry. Stanford: Hoover Institution Press, Stanford University, 1976, xv, 269 pp, $14.95. U.S.

Impressions of the Russian Oil Industry

Abstract In 1959 the USSR produced approximately 1 billion bbl of crude oil, which corresponds to U. S. production in 1929. In the Soviet seven-year plan, production of petroleum is scheduled to increase to 1.75 billion bbl. The exploration opportunities in the Soviet Union are roughly comparable to those in the U. S. in the late 1920's. With the techniques presently available to them, it appears certain that they will be able to accomplish the exploration objectives of their seven-year plan. In production, the Soviet industry is conservation-minded, maintains pressure by water injection and plans production of a reservoir on 4 per cent a year. Many of their current fields have multiple horizons which have not yet been exploited. Soviet refineries are difficult to compare to those in the U. S. because the interest is primarily in distillate production rather than in gasoline production. Their equipment is inferior to modern U. S. equipment but is satisfactory for their present demands. The Soviet Union is presently short of pipeline and storage facilities, but a special effort has been undertaken to supply these. The Russians expect to increase their exports of crude petroleum and products, and it is almost certain that they will accomplish their petroleum industry objectives in the seven-year plan. The author's impression was that the people of the Soviet Union are satisfied with their systems of government and economics and are proud of the progress they have made. The people are very poorly informed about the rest of the world, in particular the U. S. Their living standard currently is much below that in the U. S. and Western Europe, although it apparently has risen considerably since World War II. Introduction During the month of Aug., 1960, a group of eight oil men representing various aspects of the petroleum industry in the United States and two technical experts from the U. S. Government visited Russia and its petroleum industry. The delegation was selected by the American Petroleum Institute to represent the U. S. oil industry in an exchange of visits with Soviet petroleum representatives. JPT P. 621^