CHALLENGES AND PROSPECTS FOR DEVELOPMENT OF UKRAINIAN OIL AND GAS COMPLEX ENTITIES

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  Mikhail Borodin

Abstract

The aim of the paper is to analyze the current state of the oil and gas complex of Ukraine, upon which to identify the challenges and to justify the development prospects of the effective activities of complex entities. Comprehensive introduction of the advanced mechanisms for the development of oil and gas complex entities’ development will contribute to the economic growth of other industries and the Ukrainian economy as a whole, as well as decrease in the energy dependence and security of the state interests. Methods. The following methods were used in research: systematic, economic and mathematical, balancing, judgment-based and abstract-logical. In addition, methods of statistical analysis, analytical spread sheet tabulation method, and method of scientific hypothesis modelling for studied processes. Results. The effectiveness of introduction of the proposed perspective trends of the entities of Ukrainian oil and gas complex is estimated. It is proved that their comprehensive implementation will improve the competitiveness of their operations, and energy independence of Ukraine. The necessity of introduction of the innovative technologies and new approaches to solution of the management problems at oil and gas complex entities is proved. Implementation of prospective mechanisms for the development of effective activity of oil and gas entities shall be based on economic competition between the entities with simultaneous implementation of the measures of state support for the promising modernization technologies reflecting the public interest to the energy security improvement. Practical significance. A study of the current state of oil and gas complex of Ukraine and challenges of development of the complex entities contributes to the identification of areas for balancing and substantiation of the development prospects of the oil and gas sector of economy in order to ensure its energy security, taking into account the strategic orientations of Ukrainian economy development. Implementation of the promising modernization mechanisms referred in study into practice is one of the priorities of oil and gas entities for increase in their production activities and profitability. The main sources of funds for the functioning of economic mechanisms for encouragement of the modernization programs and projects can be: funds of the state and local budgets received from the established taxes, penalties and increased payments for energy resources; own funds of the entities; credit facilities; internal and external investments. The implementation of the strategic objectives of development of oil and gas entities, introduction of large-scale measures for the development, technical upgrading and modernization of the fixed assets, as well as the consistent introduction of competitive relations on the domestic and external markets shall be fulfilled through improving the pricing and tariff policy by the introduction of the economically justified level of prices and tariffs for energy resources. Value/originality. The current state of the oil and gas complex of Ukraine is analyzed and its problems are identified, upon which its development prospects are substantiated. The main challenges inhibiting the stable development of oil and gas entities and their solutions are considered. The challenge of modernization and technical re-equipment of the oil and gas complex entities and the possibility of their organizational and economic reforming are covered.

How to Cite

Borodin, M. (2016). CHALLENGES AND PROSPECTS FOR DEVELOPMENT OF UKRAINIAN OIL AND GAS COMPLEX ENTITIES. Baltic Journal of Economic Studies, 2(3), 23-28. https://doi.org/10.30525/2256-0742/2016-2-3-23-28
Article views: 284 | PDF Downloads: 68

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Keywords

oil and gas complex, investments, innovations, modernization, energy security.

References

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