The Impact Analysis of Breakthrough Technologies on the Development of Russian Oil and Gas Companies

Continuation of "bling" and degradation of the system of proven oil and gas reserves.

Opportunities

Creation and deployment of advanced developments in the oil and gas sector. The development of advanced technology is of considerable significance for the profitability of oil and gas firms. Innovations and the willingness to implement them are the most important prerequisites for the long-term success of multinational oil firms.

Increased sales through new markets. The foreign gas markets have a clear regional character. Actually, three big markets have emerged: Europe, North America and East Asia. They are all at the stage of further growth, particularly in East Asia. Two more global markets are emerging-South America and South Asia. The internationalization of world economic ties and the further growth of technical and technological developments in the transport of gas over very long distances would most likely lead to the gradual convergence of a number of regional gas markets , especially in the Eurasian continent, where over time the world's largest gas network market will be developed.

The Eurasian geopolitical role of Russia makes it possible to draw on its success, taking into account the continued growth of the gas markets of both the European Community and Asian countries. Such two industries, related to the gas industry in Russia, are at entirely different levels, 105 and the essence of their future growth should vary greatly from each other. Russia is one of the most powerful competitors on the European gas market. The existing national gas markets are situated at a significant distance from the major development centers of Gazprom, which currently critically limits the likelihood of Russian gas being available in these markets. However, it can be argued that Russia will play an equally important role in the Asian gas markets in the future. This may be due both to Russian gas exports and to Russia's direct participation in the development of gas resources in Asia.

The discovery of a variety of interesting objects while looking for hydrocarbons. According to the International Energy Agency, there is a prospect for a substantial rise in global oil supply from unconventional deposits in the global oil market, due to advanced technologies. These include deep-sea and deep-sea oil, Arctic oil, heavy oil and bitumen. However, at the current stage of technological growth, their large share remains inaccessible to production.

State assistance to the industry. The oil industry is also an important part of the Russian Federation 's economy, as it accounts for 52% of the federal budget 's financial revenues. That is why the state is working to promote and grow this field, which is why there are currently several programs that aid oil production, exports and refining firms. In particular, the Energy Policy of the Russian Federation was formulated and approved until 2035, which details the key State support initiatives for the Russian Federation's oil industry. Since the implementation of anti-Russian sanctions in 2014, several oil companies have started to incur costs, so the state has lately started to implement anti-crisis initiatives as well as financial stability to sustain the role of the oil industry in our economy. The Government of the Russian Federation is also funding this segment of the economy by numerous initiatives focused on soft loans, the issuance of 106 State guarantees, the issue of shares and debt, as well as additional financing. As a result, all State assistance programs for the oil industry are aimed at sustaining and increasing oil supply.

Boost the operational and economic circumstances of the oil industry. In general, for the long-term sustainable growth of the Russian oil industry, for the enhancement of economic performance and technical equilibrium in oil production, refining and transport, for the extension of the supply of profitable goods with high added value, for the transition in the manufacturing system of the oil and gas sector, for the implementation of technological and organizational developments. It is also advisable to adjust regulatory, tax and customs policies in order to promote production, the commissioning of new fields and the use of modern technologies to improve the rate of oil use.

Changes in the organizational and economic conditions of the oil complex, the active participation of the state in geological exploration, the creation of transport and processing infrastructure, the provision of diplomatic and political support for Russian oil and gas companies' activities in international markets-all of this will ensure the stable functioning of the oil complex, which is a key factor. In order to address current challenges, the Russian oil complex should become the key starting point for the diversification and modernisation of the national economy.

The strengths of the Russian oil and gas complex are, therefore, the high rate of growth in oil production, the high level of technical equipment of the oil and gas industry, the presence of vertically integrated structures in the oil and gas industry, the high demand for hydrocarbons as a resource for various types of transport, petrochemical production, and the advanced refining and marketing segment.

Weaknesses include dependency on global average hydrocarbon rates, an rise in the tax rate on resource production, sectoral economic sanctions by the United States, strong reliance on the growth of transport facilities, and restricted ability to transport petroleum products.

Opportunities for the growth of the Russian oil complex include the production and introduction of advanced technology in the oil and gas field, the rise in revenues by accessing new markets, the emergence of a range of attractive items for the hunt for hydrocarbons, policy funding for the industry and the enhancement of the organizational and economic conditions of the oil complex.

Threats to the oil and gas industry are the stagnation in Urals oil price rise, the emergence of alternative forms of energy, the stagnation in the global economy, the expansion of the independent oil production sector, which may undermine the convergence of OPEC countries, the continuity of 'consumption' and the weakening of the structure of existing oil and gas reserves.

4.4.3 Analysis of the external and internal environment of Gazprom Neft and Rosneft

A comparative study of the two Russian firms Gazprom Neft PJSC and Rosneft PJSC is carried out in this article. Next, we consider the key features of these firms and perform external and internal analyzes of these businesses.

Gazprom is the biggest source of gas on the Russian market (comprising 64.1% of national production) and one of the world's top producers of oil and gas.

In order to preserve its leadership and improve its role, Gazprom, like other leading companies in the fuel and energy complex, has developed its own creative growth plan (until 2020) aimed at:

Enhancing the quality and modernization of products;

The costs at each point of manufacturing (exploration, production, refining, storage, transport);

Improving service quality and research into promising areas of development;

Energy efficiency and environmental friendliness.

In the course of improving concept and survey research, the organization evaluated, first of all, potential ways to enhance each operation of its operations by using the new innovations that are now widely used by multinational companies. The identification of the key important areas was pursued. Key areas are:

Exploration of new deposits

Development of production at existing fields

Increased storage fictitiousness of oil and gas products

Realization of the use of gas and oil

Resource development in the permafrost area

Gas processing

Oil refining

Development of resources on the continental shelf

Improving the efficiency of gas trunk transportation

In order to monitor the whole phase of execution of the System, the organization has established not only central, but also additional success metrics, which are also specifically related to the specified goals of Gazprom.

It is also important to remember that the proposed growth of Gazprom in the gas industry is almost entirely compatible with the key directions for the advancement of research, technology and investment in the Russian Federation.

It should be remembered, first of all, that Rosneft PJSC is the leader of the Russian market in the oil industry (the company's oil production in 2015 was 44.5 % of the total).

The design and development work carried out by Rosneft PJSC serves as the basis for the execution of the General Plan for the Growth of the Organization until 2030, the main points of which are aimed at modernizing current production units, implementing the new technology, conservation of resources and environmental protection.

The creative technology plan defines four key fields involving technical progress by the application of the effects of research and development programs, the subjects of which are:

security service;

growth and production;

offshore projects;

oil refining.

Each defined field includes key manufacturing activities and the requisite technology, the participation of which will enable the organization to achieve its innovation-promoting objectives. Developing and executing research and development projects requires a large expenditure in financial capital. In order to ensure that this cycle proceeds with the greatest economic benefit, Rosneft PJSC is engaged in the arrangement of a variety of technical mechanisms, that enable both the company's own assets and the state's financial capital to be collected.

Figure 6. Technological platforms of Rosneft PJSC

This cycle of designing technological frameworks facilitates both the creation of novel creative technologies and profitable goods and the growth of public-private collaborations. The state-to-business relationship provides for increased financing and risk diversification for all parties participating in the project, which eventually leads to a more successful achievement of the objectives. Rosneft PJSC aims to collaborate not only with the major Russian and foreign firms, but also with members of small and medium-sized businesses in the field of innovation, as well as with the assistance of universities to recruit promising students and highly skilled workers.

Rosneft PJSC is the pioneer of the Russian oil industry. The major activities of the Rosneft PJSC manufacturing corporation are the discovery and exploitation of hydrocarbon reserves, the extraction of oil, and, and condensate, the execution of offshore construction projects, the refining of mined raw materials, the selling of oil, gas and their derivatives in and outside Russia.

The organization is included in the list of strategic undertakings in Russia. Its biggest owner (50.01% stake) is Rosneftegaz JSC, 100% state-owned, 19.75% owned by BP, 19.5% held by QHG Shares Pte. Ltd., one share is held by the State through the Federal Department for State Land Protection, the other shares are free float.

Gazprom Neft PJSC is a vertically integrated oil company whose key operations are the discovery and growth of oil and gas reserves, oil refining, and the manufacture and sale of petroleum products.

Gazprom Neft's PJSC organization comprises more than 70 oil-producing, oil-refining and trading firms in Russia, countries near and far abroad.

A controlling stake in Gazprom Neft PJSC is owned by Gazprom, whose founder is the Government of the Russian Federation.

Results

According to the analysis of the state of affairs of both international and Russian companies regarding the application and implementation of breakthrough technologies, it was revealed that companies are currently ready to introduce and apply breakthrough technologies in their activities.

At the moment, on the international market, the main competitive advantage among corporations is precisely the launch and application of new technology. Most companies carefully hide their developments in order to gain a competitive advantage, since the use of a particular technology allows the company to become the so-called pioneer in a particular area.

In 2020, oil and gas companies faced difficulties in oil and gas production. The use of breakthrough technologies will not only affect the competitive advantage of companies, but will also open up new sectors of work.

In the oil and gas industry, as our analysis shows, breakthrough technologies such as 3D printing, Virtual Reality, artificial intelligence and blockchain are being actively introduced. Interviews with representatives of Rosneft PJSC and Gazprom Neft PJSC showed that the Russian market is not just ready to introduce breakthrough technologies. Oil and gas companies are already actively using technology in various fields of activity. The interview with company representatives was approved by the management of the enterprises, since it is important for international companies to maintain their competitive advantage without disclosing confidential information.

For clarity, a table was created that indicates which breakthrough technologies are used by Rosneft PJSC and Gazprom Neft PJSC.

Table 5. Application of breakthrough technologies in Rosneft PJSC and Gazprom Neft PJSC

According to the results of the interviews, it was revealed that Gazprom Neft PJSC was actively ahead of Rosneft PJSC in the technological field. As the table in appendix 2 shows, Gazprom Neft PJSC uses breakthrough technologies in 5 directions: Printing of spare parts and accessories, Logistics, Searching for land locations, Control over the construction of facilities и Staff training.

Rosneft PJSC uses breakthrough technologies in 3 directions: Deals analysis, Drilling autopiloting, Staff training.

It is worth considering the fact that Rosneft PJSC uses breakthrough technologies in sectors in which Gazprom Neft PJSC does not currently use breakthrough technologies.

At the moment, the only breakthrough technology that cannot be implemented in enterprises is 5g communication. Active use of this technology may be feasible in the next 5 years, as soon as the government of the Russian Federation allows this technology to fully come to Russia.

Based on the results of the survey, recommendations were made with the aim of improving the management of innovative development at Rosneft PJSC and Gazprom Neft PJSC:

Companies need to delve into the development of hard-to-recover reserves, taking into account profitability and cost optimization through the use of new approaches and the introduction of breakthrough technologies.

The use of breakthrough technologies in the field of prospecting for deposits will allow us to calculate the most optimal and correct arrangement of equipment. Artificial intelligence and beam modeling technology will allow you to simulate the location of oil and gas pools with a complex structure, while assessing the density of the earth's layers. These technologies will not only increase the reliability of drilling forecasting, but also improve the efficiency of the search and discovery of minerals for further development and implementation.

Companies need to increase the number of breakthrough technologies in the logistics sector. Digitalization will allow you to adapt most business processes to new conditions. Breakthrough technologies in the field of logistics, processing and sales of oil and gas products will allow us to reconstruct and accelerate the processes for the supply of petroleum products not only in Russia, but throughout the world.

Companies need to add sectors in which Artificial Intelligence can be used. This system is able not only to provide support among decision-making, but also to solve tasks of a difficult computing nature.

Companies should work out the technology of mobile solutions and systems of wearable devices. Virtual reality glasses, smart bracelets and employee position sensors can be used not only to prevent industrial accidents, but also allow employees to interact optimally between production participants.

Companies need to master production robotics. Using drones will increase labor productivity, and replacing a person in routine processes will allow employees to focus not on routine processes, but on realizing new opportunities.

Companies need to introduce new ways of organizing the work of employees in order to improve the management of innovative development of the enterprise. The development of staff competencies in the field of innovative technologies through training will allow employees to more effectively solve difficult issues at the enterprise.

Companies need to create centers of innovative technologies for the development and subsequent implementation of breakthrough technologies in various fields.

These aspects will help companies not only strengthen their position in the international market, but also allow companies to overcome future economic crises that may occur due to economic instability around the world.

The main goal of this work was to prove or disprove 2 hypotheses:

H1: breakthrough technologies have a positive effect on the activities of gas and oil companies.

H2: Gas and oil companies are not currently ready to introduce breakthrough technologies.

The first hypothesis is proven, since it can be seen from the work that breakthrough technologies have a huge positive effect on the activities of the oil and gas company with the correct alignment of the path of introduction of breakthrough technology. Since there is already a wide variety of breakthrough technologies, the management of oil and gas companies can evaluate the profitability of introducing breakthrough technologies and take into account factors that could adversely affect the financial position of the corporation. Moreover, the introduction of breakthrough technologies not only positively affects the company's activities, it also directly affects the competitiveness of the corporation, since all oil and gas companies are in the same sector and the main source of income is oil and gas production. Therefore, companies need to improve not only the methods of extracting petroleum products, but also introduce a completely new technology that will lead to new opportunities in areas such as logistics, interaction with personnel or data storage.

The second hypothesis was disproven, since oil and gas companies are not just ready to introduce breakthrough technologies. Corporations are already actively introducing breakthrough technologies in their operations. The main success factors in introducing a breakthrough technology is the correct use of the company's capital, because with the wrong analysis and building a financial model for introducing a breakthrough technology, the company may not be ready only from a financial point of view and, as a result, the company will face bankruptcy.

Thus, it can be assumed that all over the world companies that are in the same field of activity and 10 years ago did not have the opportunity to gain a competitive advantage, since the main asset is the extraction of natural resources, they can already win the technological race. At the moment, the first company that can succeed not only in its core business, but can also succeed in the technological development of its enterprise, will become a leader in the international oil and gas industry. Rosneft PJSC and Gazprom Neft PJSC are long-standing competitors, despite the fact that both are state-owned corporations. And both of them demonstrated their readiness to enter a new era of breakthrough technologies.

Conclusion

Breakthrough technologies have a huge impact on the international market not only in the oil and gas sector, but also in other areas. In just 5-10 years, IT companies manage to develop a completely new and unique product, to which corporations have to adapt their activities. The oil and gas sector, as it turned out, successfully copes with adapting its activities to new realities. The use of breakthrough technologies directly affects the future of companies and with the correct construction of a financial model and the use of capital in the implementation of any breakthrough technology, the company will be able to gain a competitive advantage.

The main objective of this work is to show representatives of oil and gas companies that there are a large number of breakthrough technologies that can be introduced into the activities of corporations. Moreover, the application of these technologies can be in completely different fields. In addition, this work can help entrepreneurs from the point of view of becoming a supplier of a particular technology.

Thus, it can be considered that the breakthrough implementation of breakthrough technologies positively affects not only the representatives of the oil and gas industry, but also all companies in the modern world. The main aspect is building a financial model for introducing breakthrough technology and the proper use of company capital.

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Appendix 1

Appendix 2

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