Issue of Accumulation and Redistribution of Oil and Gas Rental Income in the Context of Exhaustible Natural Resources in Arctic Zone of Russian Federation
Abstract:The significant resource potential of the Arctic has attracted the attention of its adjacent countries and extra-regional states. The mineral and raw material base of the Arctic Zone of the Russian Federation (AZRF) comprises a wide range of minerals. However, due to its hydrocarbon reserves, the Arctic is considered to be the most important geopolitical and geo-economic macro-region for Russia. A significant portion of the Arctic hydrocarbons (about 19%) is concentrated in the territory of Russia’s shelf. The… Show more
“…Notwithstanding the claims in the literature and related theories already discussed, despite the natural resource curse conundrum, some countries (like Botswana) have been successful, while some countries (like CAR) are still dwelling on turning natural resources into successful ventures. We follow Kirsanova and others (2020, p. 1006), in underlining thatstate ownership prevails in the raw material sectors of most countries exporting or trading natural resources. Almost all countries rather tightly control the sphere of subsoil use.…”
Section: Literature Reviewmentioning
confidence: 99%
“…while some countries (like CAR) are still dwelling on turning natural resources into successful ventures. We follow Kirsanova andothers (2020, p. 1006), in underlining that state ownership prevails in the raw material sectors of most countries exporting or trading natural resources. Almost all countries rather tightly control the sphere of subsoil use.…”
This article examines the role played by political governance crises in the relationship between diamond exports and economic growth in the Central African Republic over the period 1978 to 2010. We used changes in constitution and government and politico-military crises (including tensions, violence, and politically motivated protests) as proxies for a political governance crisis. The Autoregressive Distributed Lag Model and Bound Test for cointegration are employed to establish short-run and long-term relationships. The results show different impacts of the proxy of political governance crises in the relationship between diamond exports and economic growth. We argue that, in a bid to ensure that diamonds fuel economic growth, improving governance of the mining sector and the political governance environment must become a core priority of the country's development strategy.
“…Notwithstanding the claims in the literature and related theories already discussed, despite the natural resource curse conundrum, some countries (like Botswana) have been successful, while some countries (like CAR) are still dwelling on turning natural resources into successful ventures. We follow Kirsanova and others (2020, p. 1006), in underlining thatstate ownership prevails in the raw material sectors of most countries exporting or trading natural resources. Almost all countries rather tightly control the sphere of subsoil use.…”
Section: Literature Reviewmentioning
confidence: 99%
“…while some countries (like CAR) are still dwelling on turning natural resources into successful ventures. We follow Kirsanova andothers (2020, p. 1006), in underlining that state ownership prevails in the raw material sectors of most countries exporting or trading natural resources. Almost all countries rather tightly control the sphere of subsoil use.…”
This article examines the role played by political governance crises in the relationship between diamond exports and economic growth in the Central African Republic over the period 1978 to 2010. We used changes in constitution and government and politico-military crises (including tensions, violence, and politically motivated protests) as proxies for a political governance crisis. The Autoregressive Distributed Lag Model and Bound Test for cointegration are employed to establish short-run and long-term relationships. The results show different impacts of the proxy of political governance crises in the relationship between diamond exports and economic growth. We argue that, in a bid to ensure that diamonds fuel economic growth, improving governance of the mining sector and the political governance environment must become a core priority of the country's development strategy.
“…The contractual model is based on the contractual principle, distinguished by detailed regulation of the operator's activities, and applied to geologically, technologically, and economically complex oil and gas fields. By writing into the contract the events that may occur, it is possible to reduce the uncertainty in economic relations between the owner of the resources and the operator [10].…”
Production activities in the oil and gas industry are capital-intensive and associated with high technology, with these assets not always being available to oil-producing countries or national companies. Any form of interaction between the parties involved in natural resource extraction requires clear regulation regarding contractual relationships. This study attempts to analyze Indonesia’s production sharing contract system in order to assess its applicability to other conditions. The article covers the key aspects of contract theory, provides a classification of contractual systems in the oil and gas sector, and discusses the most common types of contractual agreements. It also considers the key principles of production sharing contracts (PSCs), analyzes the development of PSC practices in Indonesia over the past sixty years, and highlights PSC advantages and disadvantages.
“…The scientific problem is the lack of a comprehensive methodological approach to the study of the sustainable functioning of industrial systems in the Arctic [18]. A number of authors point out that the assessment of the aggregate technical and economic potential of a field is a key condition for effective strategic management of the oil and gas complex when developing both onshore and offshore hydrocarbon fields in the Arctic [19][20][21]. A certain number of works by Russian scientists are devoted to the issues surrounding the strategic management of mineral extraction processes in the Arctic [22][23][24][25].…”
Sustainable development of the Arctic is the main priority of the state policy regarding regional development of the Russian Federation. The study of the Arctic zone of the Russian Federation for the formation of principles, methods and strategies, as well as organizational and economic mechanisms for its sustainable development is topical at present. This article deals with one of the strategic decision-making tools used in the process of implementing the development program for the Russian Arctic, namely, the assessment of the technical and economic potential of the Arctic fields. The purpose of this assessment is to rank the fields according to the priority of their commissioning for a more optimal distribution of costs in the development of Arctic resources. This paper presents the results and methodology of technical and economic potential estimation in general, and the potential of the Arctic oil and gas fields in particular. An analysis of the conceptual apparatus in the field of the evaluation of various types of potential is carried out. The methodology for assessing the technical and economic potential of a field are investigated. The problems arising in the process of such an assessment are revealed. Recommendations for improving the methodology of assessing the technical and economic potential of oil and gas fields in the Arctic are given. The necessity of expanding the list of indicators for assessing the technical and economic potential of these fields, taking into account current trends, has been noted. A list of 10 technical and 26 economic indicators to assess the technical and economic potential of the development of offshore Arctic fields is proposed.
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