Economics. Finances. Management
In the article the author considers the stages of development of strategic planning approaches and tools, analyzes the shortcomings of each approach, and creates conditions under which it is expedient to use various strategic planning tools. The main stages of the evolution of scientific schools of strategic planning are systematized: school of design, planning, positioning, entrepreneurship, cognitive school, teaching, power, culture, environment, and configuration.
Presented are modern approaches to strategic planning, widely applied in practice by domestic and foreign companies. The practice of using modern approaches to strategic development planning by oilfield service companies has been studied, and a number of differences between Russian and foreign companies have been revealed. Strategic planning for the development of foreign companies is of a long-term nature. In spite of the fact that there is a well-defined plan, in fact planning is very flexible and with the slightest change in the market, corrections are immediately made to the created plan and are adjusted to the current situation. A great deal of attention is paid to the problems of increasing the productivity of production, as well as to increasing the cost of business.
Studying the experience of strategic planning of Russian oilfield service companies shows that they actively use such strategic directions as integration, diversification, access to new markets. Based on the study, the main problems of strategic planning for the development of Russian oilfield services companies were identified. Domestic companies have difficulties in conducting analysis and forecasting of economic processes within the company, determining their strategic position in the market, developing and evaluating alternative development options. The need to improve the methodological support of strategic planning for the development of oilfield service companies, taking into account industry specifics, is determined.
The process of price formation and the role therein of the free market and the state – one of the problems, which still, in principle, has not developed a consensus, since it affects the interests of all social strata, States, which do not always coincide. In fact, the universal and complete freedom of pricing in the history never was. For various stages of economic history are peculiar only to certain differences in the degree and forms of restriction of liberty game prices. A special role in the recognition of the need for state intervention in the economy, including pricing played the second methodological revolution in economic science, associated with the great depression – the global economic crisis of 1929-1933 gg.
Key events for regulation of prices can carry legislative, judicial and administrative. World economic history has different methods of state regulation of prices: antitrust regulation, price monitoring, administrative price fixing, “leadership in prices,” depreciation policy, membership in international economic organizations, regulation of foreign economic relations…
Global objectives of state influence on prices are: promoting structural adjustment and modernization of the national economy, improving the rate and proportions of economic development, growth of competitiveness on the world market, fighting inflation, smoothing of social tension. Ultimately, control in pricing is the implementation of the course of state regulation – optimisation of economic development and stabilization of the social system.
The article describes the basic methods of state regulation of prices, and emphasis on the oil and gas sector.
PRICES: PROBLEMS OF INTERACTION OF MARKET AND STATE. THE BASIC METHODS OF STATE REGULATION OF PRICES. P. II.
The process of price formation and the role therein of the free market and the state – one of the problems, which still, in principle, has not developed a consensus, since it affects the interests of all social strata, States, which do not always coincide. In fact, the universal and complete freedom of pricing in the history never was. For various stages of economic history are peculiar only to certain differences in the degree and forms of restriction of liberty game prices.
World economic history shows that one of the most important methods of state influence on prices is the antitrust regulation, both at national and supranational levels. Among other methods of state regulation of prices is characterized by: a policy of “accelerated depreciation”, “leadership in prices,” the state monopoly on the production of certain goods, the establishment of the maximum level of quotation prices, administrative price fixing, granting the right to establish and control prices of certain goods to a supranational authority. An important instrument of state influence on prices is foreign trade policy.
The global objectives of state influence on prices: increased competitiveness of the economy on the global market, restructuring of the economy, fighting inflation, smoothing of social tension in society. It should be noted that in the article when describing the methods of state regulation of prices focuses on the oil and gas sector.
This study paper is focusing on current performance of Russia’s oil and gas industry in terms of the industry’s oil and gas company onshore operations. The Russian Federation is a member of the club of world’s major oil and gas producers working hard to meet both the needs of its own national economy in oil and gas supplies and exporting huge volumes of energy resources and petroleum products required to meet the needs of the international customers. Therefore, this review is intended to highlight the outcomes of the largest investment projects implemented in Russia over 2015-2016 periods and that includes the profile analysis of the oil production performance in Russia based on the strength of the approved General Development Plan for Russian Oil Sector.
Subsequently, this paper identifies problems facing the oil and gas industry projects inclusive of their solution prospects such as the issue of declining oil prices resulting in project freezes and high tax burdens significantly hamstringing the industry while killing the profitability of the project with the industry development derailed as a result. The oil and gas transportation cost overruns are also brought into the limelight in terms of the ineffective logistics system operation management by the oil producing companies.
To bridge certain gaps to that effect, an incentive mechanism is proposed to include the following:
Offering tax holidays to companies using innovative practices during early stages of their production operations;
Providing for Russia’s transition to a new taxation system applicable to the development of the hydrocarbon resources based on the financial performance;
Crating built environment for expansion of the system of refineries and transportation infrastructure, accordingly.
Offering tax holidays to oil and gas companies during early phases of their production operations will encourage the subsurface users to explore and further develop subsurface formations that are still unexplored. The State will surely have to incur considerable losses in the early phases of such operations; however, the state revenues will be recouped in the future due to profit taxes.
Currently, Article 424 of the Tax Code defines the subsurface areas where zero rate taxation is applied. The Bazhenov pay zone qualifies for such treatment, in particular.
This study is focused on the current system of project management practices by the oil and gas industry companies; the key project management principles are being reviewed from the standpoint of finding effective solutions to the issues facing operating companies of the industry. The classification of the projects is presented in terms of the investment volumes that are required to implement the projects and therefore these projects are classified as low-budget, mid-budget and big-budget projects, accordingly. The paper shows oil & gas operating company’s project risk assessment methodology using qualitative and quantitative analysis methods. The specifics of risk assessment methods are presented on the basis of simulation modeling which is the most reliable and widely used process in the oil and gas industry. To factor in the risks of potential oil pipeline failures and incidents, a methodological tool has been proposed for the model that incorporates an incident response procedure which is included into the costs incurred or mitigates the integral effect by a discounted amount of expenses associated with the incident response operations throughout the life cycle of a facility. The above-named approaches are based on a step-by-step determination of the effectiveness by using the model in order to conduct the risk assessment of the projects. The principal advantages of the model include transparency of evaluations, simplicity of their understanding and assessment of the project performance by all participants. The process of project implementation incorporates multiple phases and that requires careful assessment of the economic efficiency of the projects. The effective project management system is therefore one of the factors contributing to successful implementation of the project and providing for further development of the industry as well. This study paper fully proves that it is expedient to apply these project management principles so to enable investments by the oil and gas operating companies and that includes the need in conducting project risk management.