Modern problems of the oil industry development and their impact on the financial stability of oil production enterprises

Abstract

The oil industry is one of the main key points in the economies of Russia and Iraq, therefore, the state, social and economic life of the country depends on its productivity, functioning, and stability. The oil industry has several tasks: improving energy efficiency, modernizing equipment, and innovative developments. The oil industry has experienced ups and downs over the years, but the 2020 crisis hit the industry harder than in all years. The long-term decline in oil demand paints highly unfavorable prospects for the future. The Covid 19 crisis was the worst in the history of the oil industry. As companies and entire industries recoil from its effects, oil prices continue to fall. The pandemic has reduced the demand for oil to such an extent that the industry is unable to adapt to such a sharp decline. And the buildup of oil reserves further lowers fuel prices. This article is devoted to the reflection of the algorithm and the substantiation of the practical application of the developed automated model of analysis and forecasting of the financial condition of an enterprise using regression analysis in assessing the financial indicators of an oil production enterprise. In the course of the research, the methods of logical, statistical analysis were used. The developed prototype of an automated model for complex analysis and forecasting of the financial condition of oil production enterprises is a good basis for creating a full-fledged commercial system for the oil production business. It is concluded that the new automated model of analysis and forecasting provides an opportunity to analyze the financial condition of an oil production enterprise, including the identification of its financial difficulties and the study of financial attractiveness, as well as to predict the financial condition of an oil production enterprise within almost any time interval, determining ways to overcome its financial difficulties and increasing financial attractiveness.