Global oil market: digital technologies application to strengthen the position of Russia

Economic Annals-ХХI: Volume 180, Issue 11-12, Pages: 110-121

Citation information:
Parkhomchuk M., Kuzmina, V., & Golovin, A. (2019). Global oil market: digital technologies application to strengthen the position of Russia. Economic Annals-XXI, 180(11-12), 110-121. doi: https://doi.org/10.21003/ea.V180-12


Marina Parkhomchuk
D.Sc. (Economics),
Professor,
Faculty of Public Administration and International Relations,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russia
marinaanatollevna@yandex.ru
ORCID ID: https://orcid.org/0000-0002-6475-5440

Violetta Kuzmina
PhD (Economics),
Associate Professor,
Faculty of Public Administration and International Relations,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russia
kuzmina-violetta@yandex.ru
ORCID ID: https://orcid.org/0000-0002-1867-7330

Aleksei Golovin
D.Sc. (Economics),
Professor,
Faculty of Public Administration and International Relations,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russia
dr.golovin2013@yandex.ru
ORCID ID: https://orcid.org/0000-0002-5738-4194

Global oil market: digital technologies application to strengthen the position of Russia

Abstract. The modern oil market is characterized by instability and high competition. Depletion of oil fields, depreciation of equipment for oil production, price instability and political conflicts have a negative impact on the position of Russia at the global energy market. At the same time, the world entered an era of a new technological revolution that did not pass by the oil industry. In particular, the concept of digital production is spreading and implementing.

The aim of the work is to study the place and role of the Russian Federation in the world oil market and the possibilities of using digital technologies in this sector of the world economy.

The information base for the analytical study were statistical data from official sources: the Centre for Macroeconomic Analysis and Short-term Forecasting (CMASF), the Ministry of Economic Development of Russia, Ru-Stat, the Analytical Centre for the Government of the Russian Federation. Significant statistical and analytical information has been received from the strategic reports on Gazprom Neft and the LUKOIL oil companies.

Along with discussion of the state and significant changes in the oil production and refining market at the present stage, the study analyzes the potential and real mechanisms of digitalization of the industry in Russia in order to reduce transaction costs. Thus, to achieve the goals of the Rosneft-2022 strategy, the company has signed an agreement with General Electric on the creation of a joint venture focused on the introduction of modern digital technologies and new industrial Internet standards. Gazprom Neft implements a strategy on the digital products development named «Electronic development of assets» («ERA»), designed to ensure the operational management of key production stages. «ERA» is among main instruments of complex and widespread digitalization of business at all levels of estimating field costs, production and management.

The concept of an intellectual field (LIFE-Field), implemented in the oil company «LUKOIL», is to integrate the field management processes based on automated computer systems and high-tech data collection systems.
A key component of the digital production concept is the use of certain software that allows all employees of the oil sector to carry out their activities more quickly and efficiently, while reducing industry operating costs.

Keywords: World Oil Market; Oil Production; Oil Refining; Oil Price; Digital Production; Gazprom Neft; LUKOIL; Rosneft; Russia; Power; Capitalization; Information Technology; Digital Technology

JEL Classification: F23

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V180-12

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