Russian Oil Research Articles

Assessment of the results of modernisation and prospects for the development of the Russian oil refining in the context of sanction restrictions

The implementation of the programme for modernisation of Russian oil refineries, launched in 2011, has already significantly increased the depth of oil refining and the quality of petroleum products. It has had a positive effect on reducing the country’s dependence on crude oil exports and has made it possible to obtain a significant positive environmental effect. However, at the same time, there has been a decrease in marginality. At the present stage, the main problems of the Russian oil refining, which affect, among other things, the implementation of modernisation projects, are associated with a ban on the supply of equipment and software for oil refining, the imposition of an embargo and a price ceiling for oil products. The article analyses the results of the implementation of the modernisation programme in terms of the impact on economic and environmental performance of oil refineries and the impact of sanction restrictions on the further modernisation of enterprises. It also considers possible ways to solve problems through the development and implementation of modern production technologies in combination with digital solutions.

Resource Potential of the Oil and Gas Complex of the Republic of Sakha (Yakutia) and Its Development Prospects

Abstract. In recent years, the Russian oil and gas complex has been undergoing sanctions and restrictions related to the political situation in the country and in the world, which negatively affects the economic development of the country. The consequences of sanctions include: disruption of logistics of export supplies of oil and gas raw materials, replacement of Russian hydrocarbons with supplies from other countries, reduction of foreign investment and participation of foreign companies in Russian oil and gas projects, restriction of imports for the supply of equipment and technologies, etc. First of all, these problems cause the need to expand sales markets and build new production and logistics chains, replacing imported equipment and technologies with domestic ones. In order to solve the difficult economic relations that have arisen with the EU countries, it is proposed to redirect the market for oil and gas raw materials towards Asian countries. In this regard, the study of oil and gas resources of the Far East, including the Republic of Sakha (Yakutia) is a very relevant task. The purpose of this article is to identify the level of availability of mineral resources of the oil and gas complex. The object of the study is the oil and gas complex of the Republic of Sakha (Yakutia): industrial balance reserves and forecast resources of oil and gas fields in the region, and the main subsurface users of oil and gas fields. The subject of the study is the analysis and assessment of the state of the mineral resource base of the oil and gas resources of the region and the prospects for its development. Based on the analysis of the current state of the potential of the oil and gas resources of the Republic of Sakha (Yakutia), as well as a review of the global oil and gas market, promising directions for the development of the regional oil and gas complex are identified in the article.

Scientific foundations of forecasting and searching for large accumulations of hydrocarbons

The article discusses the features of the formation of large reserves of oil and gas fields, confined to megareservaries. Based on the statistical analysis of the actual data for the 26 largest reserves of the world and Russian oil and gas fields, an assessment of the dependence of the reserves on the main geological factors involved in the formation of the deposit, such as the area of the deposit and the filtration and reservoir properties of reservoirs, is given. The criteria for forecasting large accumulations of hydrocarbons at different stages of geological exploration are proposed.

The fundamental basis of innovative technologies of oil and gas industry

The further development of the Russian oil and gas industry significantly depends on the creation of the new innovative technologies. The article deals with the achievements of the scientists of Oil and Gas Research Institute of the Russian Academy of Sciences and other academic institutions in the field of creation of advanced scientific, technical and technological solutions for improving the efficiency of prospecting, exploration and development of oil, gas and gas condensate fields, as well as proposals for the development of the methods for monitoring oil and gas transportation routes and petrochemical industry.

Oil and petroleum products market in the Russian Federation: new challenges and development prospects

Within the framework of global geopolitical tensions and sanctions pressure from Western countries, the restructuring of the Russian oil market is taking place, affecting the economies of the leading states of the world arena, including Russia.The subject of the study is changes in the Russian oil and petroleum products market. The purpose of the study is to examine the situation on the oil and petroleum products market by the end of 2022, to analyze the main measures of the Russian government in response to anti–Russian sanctions, promising directions for reorienting supplies from Russia, and also to forecast the prospects for the development of the markets in question for 20232026.The results of the study. The current geopolitical uncertainty and various restrictive measures against Russia pose a threat to the stability of the Russian economy. These risks can be minimized with the help of competent actions of the authorities and the implementation of measures to redirect exports, which will support the economy and maintain positions in the international commodity market.

Assessing the relationship between financial factors and the value of Russian oil and gas companies

Subject. The study analyzes the relationship between financial factors and the value of Russian oil and gas companies. Objectives. The focus is on the assessment of the impact of financial factors on the value of Russian oil and gas companies from 2018 to 2022. Methods. We employ the correlation and regression analysis to determine the relationship between financial factors and the value of companies. Such indicators as capitalization, revenue, operating profit, net profit, assets and equity of companies are considered as financial factors. Results. The analysis of Russian oil and gas companies (PAO Rosneft, PAO Lukoil and PAO Gazprom Neft) established a direct relationship between financial factors and the company value. So, PAO Rosneft has the highest correlation between revenue (0.965) and equity (0.954). For PAO Lukoil, the correlation coefficient between capitalization and revenue is 0.96, between capitalization and assets - 0.96, between revenue and assets - 0.99. For PAO Gazprom Neft, the correlation coefficient indicates a close relationship between the company's assets and equity (1.00). Conclusions. The results obtained can be applied in value management of oil and gas companies in modern conditions, in decision-making process in investment and management activities. The findings have practical and scientific significance and can be useful by investors, company executives, and analysts of the Russian oil and gas market to build more effective forecast models of capitalization of oil and gas companies.

Structure and formation conditions of the Yarakta productive horizon of the Late Vendian in the southern part of the Nepsko-Botuobinskaya Anticlise

The relevance. Eastern Siberia is a region with large raw material resources that plays a crucial role in development of Russian oil and gas complex. Since the 1970s, active exploration for hydrocarbons has been underway in the Nepsko-Botuobinskaya Anteclise. One of the main targets for development are terrigenous Vendian deposits, in which up to half of the region hydrocarbon reserves are concentrated. Therefore, for optimal development of the fields confined to them, a detailed study of lithological factors of formation of terrigenous reservoirs is required. The main aim. Lithological and facies analysis is used to reconstruct and trace the evolution of sedimentation conditions of the Yarakta productive horizon of the Nepa Formation. Objects. Terrigenous deposits of the Yarakta productive horizon of the Upper Nepa subformation of the Upper Vendian Formation, uncovered by deep drilling in the area of the Yarakta field. Methods. Mineralogical-petrographic study of core material, facial analysis of lithological rock types, correlation. Results. The Yarakta productive horizon was formed during Late Nepa time. At that time, there was a partly subaerial and to a greater extent subaerial delta plain (lower delta plain) within the tidal plain. It is assumed to be a delta of advancement on a coast dominated by tidal activity and to a lesser extent by wave activity (mixed type of coast). In the subsequent transgression, in the late Nepean time (upper part of the strata), a bar system began to form in place of the delta plain with the bars advancing toward the coastline in the northwestern direction. The bars had an elongated lentil-shaped shape along the conditional coastline. During the formation of the bars, due to the active wave and tidal activity, the sediments carried out by the delta were redeposited and re-sorted. At the Late Nepa and Early Tertiary boundary, the entire area was a shallow intertidal and terrigenous sebha (lagoon) with clay-siltstone sediments and sulfate-carbonate inclusions in them; sometimes, sandy sediments of small intertidal channels or sandbanks are noted in them. Improved filtration-capacitative properties are associated with the facies of distributary subaquatic channels and large (active) tidal channels.

Volatility spillovers across Russian oil and gas sector. Evidence of the impact of global markets and extraordinary events

This paper provides empirical evidence on the evolution of the impact of external shocks on the volatility connectedness of Russian oil and gas companies’ stock prices. We examine how the spillover structure has changed following the outbreak of COVID-19, as well as under the impact of the 2022–2023 events.We have extended the Diebold–Yilmaz approach to calculate conditional connectivity measures adjusted for the influence of global factors and unexpected shocks caused by extraordinary events.We use an augmented vector autoregressive model (VARX) to evaluate the adjusted conditional connectivity measures. The dynamics of connectivity indices are analyzed using the moving window method for VAR and VARX models, as well as using a dynamic model with time-varying coefficients (TVP-VAR). The comparison of adjusted and unadjusted connectivity measures allows us to draw conclusions about the impact of changes in foreign financial markets as well as shocks caused by extraordinary events on connectedness structure.We found that measures of conditional connectivity change much more slowly than unconditional ones. Our results support the hypothesis that essential part of the fluctuation of Russian oil and gas connectedness indices can be explained by exposure to unexpected shocks and global economic and political factors. Accordingly, the transformation of the network structure of risk transfer occurs quite smoothly, without sharp jumps and takes a considerable amount of time.

Cleaning Russian oil industry for energy resource exploration and industrial transformation towards zero carbon green recovery: Role of inclusive digital finance

This study is inspired by the pressing need to deal with environmental problems inherent to Russia's oil sector and simultaneously encourage progress toward a zero-carbon green recovery. The current relevance of this work is highlighted by using the present perfect tense. Russia is crucial to fighting climate change and fostering sustainable development as a significant energy market player. Therefore, this study examines how inclusive digital finance has helped Russia's oil sector grow. It seeks to determine how broad digital banking, fintech, and electronic payment systems may assist the Russian oil business in becoming more sustainable. An empirical analysis of secondary data will determine whether digital financial tools have promoted eco-friendly operations, reduced carbon emissions, and improved environmental performance. By examining digital financial activities, the research hopes to help the Russian oil industry balance economic development and environmental sustainability. This study reaffirms the importance of inclusive digital finance as a driving force in transforming the Russian oil sector, reducing its negative environmental impact, and setting it on a course that aligns with the zero-carbon green recovery imperative. A study found that inclusive digital financing measures in the Russian oil sector may expedite its zero-carbon, green recovery and enable sustainable energy resource development. This policy change will reduce environmental impact and boost sector development and innovation.

The impact of energy imports on green innovation in the context of the Russia-Ukraine war

This research paper examines the implications of energy imports on green innovation within the context of the Russia-Ukraine war. It utilizes panel data spanning EU countries from 1999 to 2022. Initially, the study explores the influence of natural gas and oil imports on the advancement of green innovation. Specifically, it reveals that the importation of natural gas facilitates progress in this area, whereas the importation of oil can impede such advancement. Following the Russia-Ukraine war, the role of gas imports in fostering green innovation within EU countries has grown, simultaneously exacerbating the adverse effects of oil imports on green innovation. Secondly, by employing a panel threshold model, the study identifies that higher energy prices make natural gas and oil imports unfavorable for the progress of green innovation in EU nations. Thirdly, an analysis of heterogeneity demonstrates that, as a result of the Russia-Ukraine war, natural gas imports have a more significant detrimental effect on the development of green innovation in EU nations with a natural gas dependency ranging from 10% to 90%. In the case of oil imports, EU nations with a dependence on Russian oil exceeding 50% experience a more pronounced negative impact on the development of green innovation. Fourthly, a mechanistic study elucidates that natural gas imports indirectly stimulate green innovation through the mechanism of energy transition, while oil imports hinder the development of green innovation by exacerbating carbon emissions. The empirical findings of this paper carry substantial policy implications for EU nations, urging the acceleration of energy transition in response to the impact of the Russia-Ukraine war on green innovation. Moreover, these findings have broader implications for global environmental management and the collective endeavor to combat climate change.

The impact of Russian Energy Resources on the Economic Growth of the EU: Using Computational Intelligence Algorithms

This study explores the impact of Russian oil and natural gas on the economic growth of the European Union. The Gradient boosting algorithm was relied on to determine this effect because of its high prediction metrics (MSE: 0.002, RMSE: 0.040, MAE: 0.034, R2: 99.9). The study depended on three scenarios. The first scenario is that Russia's exports of both products decline to half the year 2022, then to the quarter of 2023, and this second scenario, then the worst scenario, is to prevent Its exports of both products in 2024. But the result is a decline in the European Union's economic growth in 2022 to (-2.15%), then it turns to 2.85% in 2023, and then to 3.86% in 2024, i.e., in the worst scenario year. The evidence for this is that the economies of these countries reduced their growth rates in 2020 (the Covid-19 crisis) to -5.96%, which turned to positive growth in 2021, amounting to 5.38%. This indicates these economies' ability to adapt in the short term by providing alternatives to the crisis.

Ensuring the technological independence of oil and gas companies using patent analytics on the example of companies producing liquefied natural gas

The article analyzes technological development of the oil and gas industry in Russian Federation under international sanctions, as well as the directions of technology development and equipment production. The article purpose is to identify ways to achieve technological sovereignty in the industry. Patent statistics and construction of patent landscapes is considered as a method of choosing the direction of technological development. The study object is Russian oil and gas companies, while the main attention is paid to companies producing and distributing liquefied natural gas. The study subject is application of patent statistics for identifying trends and directions of technological development of the industry. The study result is determination of industry leaders, and the most promising areas of research in the field of means and methods of liquefied natural gas transportation, methods of its liquefaction or curing, as well as storage equipment. The article draws conclusions about the most promising technologies and patent trends, such as the creation of mobile plants for production of liquefied natural gas , including the construction of its own fleet of gas carriers and floating plants for the gas liquefaction to provide access to the infrastructure of offshore fields. In addition, for rapid development of new markets, the use of floating terminals for regasification is proposed. Approaches to assessing the innovation activity and competitiveness of companies have been considered.

Strategic Approaches to Ensuring Technological Sovereignty in the Energy Sector

This article discusses strategic approaches to ensuring technological sovereignty in the energy industry. Special attention is paid to the development of the Russian standardization system for oil and gas equipment and technologies based on the established Institute of Oil and Gas Technological Initiatives, which includes Russian and foreign oil and gas companies. Effective forms and methods of implementing import substitution programs, consolidating industry demand for oil and gas equipment and technologies, preparing standards and conducting conformity assessments of enterprises on them, as well as possible options for international cooperation based on the creation of a unified legal field in the field of standardization are proposed. The research carried out by the author made it possible to formulate strategic priorities for the implementation of domestic technological policy in the oil and gas complex, aimed at solving topical issues of import substitution and ensuring technological sovereignty. Ensuring technological sovereignty in the energy sector is a strategic task that requires consolidation of efforts at the state, industry and corporate levels of management.

Application of the theory of stakeholders in assessing the investment attractiveness of corporate structures

Purpose of the article is to describe the authors' proposal on the use of the concept of stakeholders in assessing the investment attractiveness of corporate structures, an alternative to traditional fundamental investment analysis.Methods: the basis of the research is the expansion of ideas about the factors affecting the investment attractiveness of the corporate structure on the basis of multi-subject assessments, in accordance with the theory of stakeholders.Results: currently, the investment attractiveness of a large corporate structure is formed under the influence of a variety of financial and nonfinancial factors that depend on actions or judgments broadcast (via the media, the Internet or other modern means of communication), not only by investors, but also by other interested parties. The approach proposed by the authors to assessing investment attractiveness differs in that it is based on the need to meet the information needs of various groups of stakeholders, not just investors. To achieve this goal, two interrelated tasks have been solved in the work. Firstly, the impact of factors influenced by stakeholders on the indicators of investment attractiveness is considered. Secondly, the assessment of investment attractiveness is carried out on the basis of information about the company's solution of environmental, social and other modern tasks.Conclusions And Relevance: the approach considered in the article, which involves the use of the theory of stakeholders to study the factors that influence investment attractiveness, has practical importance for corporate structures. The authors' calculations made on the basis of open information from one of the largest Russian oil and gas companies, PJSC Lukoil, confirm the hypothesis about the correctness of using the theory of stakeholders as another approach to assessing the investment attractiveness of the company. The calculations illustrate the significant closeness of the relationship between indicators traditionally used in assessing investment attractiveness and non-financial indicators that reflect the information needs of not only investors, but also other stakeholders (employees, customers, suppliers, financial institutions, the media, environmentalists, trade unions, etc.).

Meeting the UN’s Sustainable Development Goals in the Decarbonization Agenda: A Case of Russian Oil and Gas Companies

Being key players in providing sustainable energy on a global scale, oil and gas (O&G) companies can contribute to achieving the UN’s Sustainable Development Goals SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). This paper focuses on Russian O&G companies and presents an analysis of their contribution to these SDGs in the context of today’s decarbonization agenda. The study is based on a content analysis of their corporate sustainability reports and has produced three results. First, we analyzed the key strategic goals of Russian O&G companies. Second, we identified the correspondence between the progress towards the SDGs declared in their sustainability reports and the UN’s SDG indicators. Third, we analyzed the contributions of Russian O&G companies to SDGs 7 and 13. As a result of the study, recommendations were formulated to introduce practical tools aimed at increasing the contribution of Russian O&G companies to sustainable development. The article discusses problems in corporate sustainability reporting of Russian O&G companies. The paper also seeks to expand the existing literature on the contribution of the Russian O&G sector to providing sustainable energy and accelerating the energy transition in line with the decarbonization agenda.

Corporate carbon management system

The basis of the company’s decarbonization is the effective management of greenhouse gas emissions. The article visualizes in graphic material the forecast values of the mass of greenhouse gas emissions in the fuel and energy sector of Russia until 2030 and determines the trends in their changes. Based on the results of the analysis, it was revealed that in order to achieve a low-carbon development path, it is necessary to introduce additional measures to reduce greenhouse gas emissions. The purpose of the scientific research is to develop a corporate carbon management system, which can become a guideline for the development of corporate systems by Russian oil and gas companies. A reliable system for recording and monitoring greenhouse gas emissions serves as the basis for obtaining up-to-date, complete and reliable data. At the same time, for the quality control of the decarbonization process, a scheme of interaction within the company should be clearly built. The development and implementation of a carbon management system will allow the company to systematically reduce greenhouse gas emissions, which will create conditions for the transformation of climate risks associated with government regulation into the category of opportunities such as entering carbon markets, attracting investors, etc. The authors note that in most large Russian companies have already developed and introduced carbon management systems into production. After analyzing the current greenhouse gas accounting system of JSC “Zarubezhneft’’, the authors propose to create a carbon management system taking into account the specifics of the company, which consists in organizing activities on the territory of different countries (Cuba, Bosnia and Herzegovina, Egypt, Uzbekistan, Indonesia, Vietnam and Russia). It is proposed to adapt the methodological approaches for calculating greenhouse gas emissions to the requirements of the legislation in force in the territory where the production facilities of the JSC “Zarubezhneft’’ are located, and also to apply national coefficients in the calculation to ensure more accurate emission estimates. The result of the study is the development of the concept of the carbon management system of JSC “Zarubezhneft’’.

Влияние стратегических рисков на реализацию проектов нефтегазовой компании

The article provides the analysis of strategic risks identification practices in Russian and international oil and gas companies. The lack of uniformity in approaches to strategic risks definition and identification processes were indicated during this research. The authors propose a formal approach to identify strategic risks and analyze their impact on the key performance in-dicators of oil and gas projects, based on the chain of strategic risks reflect-ing the causal relationship of its elements: factors of strategic challenges, strategic challenges, strategic threats (prospects), strategic risks (opportu-nities), consequences of strategic risks (opportunities) implementation. The impact of strategic risks on the key performance indicators of oil and gas projects is assessed through the comparison of the consequences after strategic risks implementation and key performance indicators of projects. This approach could be integrated into the risk management system of oil and gas companies at the level of strategic management, highlighting the following steps: collection and systematization of primary information about trends in the external environment; formation of strategic risk chains; impact analysis after strategic risks implementation on the key performance indica-tors of oil and gas projects.

Russias Power on Energy: An Analysis of Dependency on Russias Crude Oil

This paper presents a methodology that integrates data and policy analysis to investigate the dependency of countries on Russian crude oil and the extent of Russia's energy power. Specifically, the study examines the global crude oil market and international policies, identifies the relationship between crude oil market demand and supply, and assesses the impact of national energy policies on this relationship. The research also investigates the dependence of major crude oil exporters on Russian oil. By combining these indicators, the paper concludes that while China and Europe are reliant on Russian crude oil in terms of market performance, they are not entirely dependent on it from a policy perspective. Hence, other policy factors diminish Russia's energy power.

Consequences of the energy measures derived from the war in Ukraine on the level of prices of EU countries

The war in Ukraine and the sanctions imposed by the European Union on Russia, which is one of the largest exporters of gas and oil, are currently causing a serious energy crisis. The aim of our work is to analyze the effects that the rise in fossil fuel prices, due to the embargo on Russian gas and oil resulting from the war in Ukraine, is having on the productive sectors of European economies. We apply input-output methodology, which allows to determine and analyze the impacts experienced both in production and prices, when there is a change in an exogenous variable. The results show that not all countries and sector were affected in the same way. In fact, there are significant differences that should be considered. European countries should keep inflation under control, without social welfare losses.

Potential impacts of rapidly changing european use of fossil fuels on global warming

The balance of primary energy sources for Europe has been changing rapidly over recent decades, shifting towards more renewables and using fossil fuels with lower carbon emissions. However, the latter is being impacted by the Russia-Ukraine conflict. Here, we determine the potential bounds of how this may affect global warming, based on whether the European use of Russian gas and oil is replaced with either less efficient burning of coal (with and without the gas and oil then used in new markets elsewhere) or with renewables. We perform calculations as perturbations from a baseline carbon dioxide (CO2) trajectory associated with ‘middle range’ and ‘low’ Shared Socioeconomic Pathways (SSP), SSP2-45 and SSP1-26. We calculate the CO2 perturbations as a simulated step change in emissions for the year 2023, which then decays linearly to zero by 2043. The emission profiles drive the FaIR simple climate model. FaIR links greenhouse gas emissions to global warming levels and includes a representation of warming uncertainty based on projections made using more complex Earth system models. We find that the direct impact of the conflict on the global mean temperature is likely to be relatively small, amounting to the worst case of nearly one-hundredth of a degree. This warming is equivalent to approximately an extra half year of current global CO2 emissions. However, we suggest that it is important to consider the implications of the precedents set by the European response to the reduced availability of Russian gas and oil. Such action may reveal the potential for faster uptake of low-carbon energy sources or the converse of backtracking on current Nationally Determined Contributions (NDCs).