Evaluating the Downstream Development Strategy of Oil Companies: The Case of Rosneft

Abstract

The relevance of this study is due to the low rate of development of the downstream sectors of Russian oil companies. Against a background of the sale of significant volumes of oil and gas raw materials, Russia lags behind world leaders in the production and consumption of petrochemical and chemical products, with their share in the gross domestic product of the country being only 1.1%. Connected to this is the issue of substantiating strategies of development for the downstream sectors of Russian oil companies, which requires detailed research. In this light, it is necessary to take into account current trends in the worldwide demand on petroleum products and also the opportunities and competitive advantages of Russian oil and gas companies in the creation and development of refineries with a consideration of modern technological, environmental, social and market criteria. The paper tests hypotheses about modernisation as a process of increasing efficiency in the development of the industry as a whole. The results of the study show that the planned pace of development in the industry by means of modernisation proves to be insufficient and requires additional investments in innovative development and new construction. The value of the research lies in the modelling of modernisation strategy options by the example of a large oil company, the estimation of results by the criteria of world average indices of technological efficiency of production and the analysis of these results by state indicators of branch development. The theoretical significance of the research lies in the possibility of using this research approach as an analogue.

The development of the soderberg electrolyzer electromagnetic field’s state monitoring system

“…Speaking about the methodological component, it is important to mention, that in modern economic conditions, the development of a software and hardware complex should be carried out under strict weight and size conditions while minimizing production costs. As was shown in works 45 – 48 , taking into account the limitations 49 – 53 , the economic assessment of the work consists not only of internal and external factors, but also of the market’s current state. Most parameters of the current state are associated with the demand of the goods and services on the market.…”

“…In the context of transportation of oil, gas, biodiesel 54 and other components that are directly related to the cost of transportation, a number of economic factors influencing metallurgy can be identified: Prices of metal resources: Prices of steel, iron, aluminum and other metals have a direct impact on metallurgical production. Increasing prices for metals can increase the cost of production and reduce the demand for metallurgical products 1 – 3 , 10 , 16 , 45 – 49 , 55 , 56 . Demand for metallurgical products: economic growth and the construction industry can lead to an increase in demand for metallurgical products, while a recession in the economy can reduce demand 2 – 5 , 7 , 19 , 22 , 28 – 30 , 45 – 49 , 57 – 62 .…”

“…Increasing prices for metals can increase the cost of production and reduce the demand for metallurgical products 1 – 3 , 10 , 16 , 45 – 49 , 55 , 56 . Demand for metallurgical products: economic growth and the construction industry can lead to an increase in demand for metallurgical products, while a recession in the economy can reduce demand 2 – 5 , 7 , 19 , 22 , 28 – 30 , 45 – 49 , 57 – 62 . Innovation and technological progress: the introduction of new technologies and processes can increase the productivity and efficiency of metallurgical production, which can have a positive impact on its development 2 – 5 , 7 , 19 , 22 , 28 – 30 , 57 , 63 – 65 .…”

Influence of mining rent on the efficiency of using natural potential: the paradox of plenty and its Russian specifics

“…According to the Ministry of Energy, compared to 2014, in 2020 the number of investments by Russian oil companies in oil refining projects decreased from 250 to 150 billion rubles in year. Only 38 % of the modernization program has been completed (in fact, 29 units have been launched with a plan of 78 modernized units) [31].…”

“…In this strategy, you can use both your own experience and experience of other countries with significant oil and gas resources, in particular, Norway, where related sectors were created and reached the export levelthe construction of oil platforms, the creation of software used in exploration and exploitation deposits in other countries. Other measures should also be planned to increase the VA in the oil and gas complex itself, since "against the background of significant sales of oil and gas raw materials, Russia lags behind the world leaders in terms of production and consumption of petrochemical and chemical products, whose share in the country's gross domestic product is only 1.1 %" [31].…”