Bìznes Inform (Jun 2017)
The Genesis of Economic Risks in the Activity of Oil and Gas Production Enterprises
Abstract
The article is aimed at a detailed and comprehensive analysis of the significant risk factors in the economic risks occurrence for the domestic oil and gas production enterprises. In terms of analysis of the risk factor such as volatility of the price of crude oil, the article allocates and analyzes in detail the reasons that influence the level of the starting price at domestic auctions for crude oil and gas condensate: the price change in the world oil market and the hryvnia course against the US $1. As a result of an analysis of the price change for crude oil in Ukraine during 2011 – 1st quarter of 2017, it was determined that in a sharp fall in the price of oil in the world market (due to the sharp devaluation of the national currency), there was a situation in which the world price of oil in the hryvnia equivalent grew (February 2015). The tendencies in changing the tax code of Ukraine for the period of 2012-2016, which relate exclusively to rents for the exploitation of mineral resources for the extraction of crude hydrocarbons, have been examined and the violated principle of stability has been discovered. Factors that adversely impact Ukraine’s investment environment together with the directions of improving the investment climate in the oil industry have been allocated. The study has resulted in an analytical survey of the economic risks as to the activities and problems in the development of domestic oil and gas production enterprises, which can be used to elaborate development strategies for the entities of the industry in question.
