Energy Independence Strategy: New Approaches to Competitive and Sustainable Development

Abstract

The energy independence impact on the competitive and sustainable development of the country has been researched in the article. Key challenges and problems related to maintaining the stability and the energy system efficiency are identified, including insufficient generation facilities capacity, dependence on energy imports, and environmental pollution issues. Energy problems have been examined at the individual, household, and national levels, as well as their interrelation. Attention has been paid to the fact that the issues in the country’s energy system affect the quality and reliability of energy supply to the population, limiting their freedom of choice and interaction with energy management systems. Dependence on energy imports complicates the country’s energy situation and puts it in a vulnerable position in the global energy market. The development trends of crude oil market have been considered, its production in different regions of the world was analyzed, as well as the role of the Organization of Petroleum Exporting Countries (hereinafter – OPEC) in regulating the prices and volumes of the oil market. In connection with the increase in world needs for energy resources, there is an increase in oil production, particularly, in 2022, a historical record for the production of this resource has been observed. This is by 1.6% higher than in 2021. The leaders in terms of crude oil production are primarily the countries of the Middle East, where the production of this resource in 2022 increased by 13%, in particular at the expense of countries such as Saudi Arabia (16%), United Arab Emirates (15%), Kuwait (8.1%) and Iran (5.9%). Information about the largest oil producers and their contribution to the overall extraction volume has been provided. Attention is paid to the problems of oligopoly in the world oil market, noting the significant influence of several large companies and exporting countries on this market. The first place in terms of crude oil production in the world is occupied by the USA – 762 Mt, the second – Saudi Arabia – 601 Mt, the third – russia (539 Mt), significant volumes of oil are also produced in such countries as Canada, Iraq, China, United Arab Emirates (hereinafter – UAE), Iran, Brazil, Kuwait, Mexico and Norway. Attention is focused on the challenges of oligopoly in the global oil market, noting the significant influence of several major companies and exporting countries on this market. Attention has been drawn to the difficulties of unmonopolization of the energy market because of the peculiarities of the natural resources’ placement and existing technological and economic developments. It has been proven that the development of a competitive environment and the increase in energy independence and security are strategic tasks necessary for sustainable economic development. The achieving competitive and sustainable development of countries economy possibilities through the alternative energy sources use and the energy cooperatives creation have been justified, which will contribute in providing access to sustainable, efficient, and environmentally friendly energy, thereby promoting the development of local communities and competitive and resilient development of socio-economic systems. Suggestions are made for the development of alternative energy sources and energy-efficient technologies as key directions of the strategy for energy independence. The necessity of innovative solutions and international cooperation has been emphasized to ensure energy security and stimulate sustainable economic growth of Ukraine.