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Peculiarities of Investment Decision-making in the Oil and Gas Industry Aimed to Ensure Sustainable Growth of the Russian Economy

Author

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  • Denis Grigorievich Perepelitsa

    (Plekhanov Russian University of Economics, Stremyanny per., 36, Moscow, 117997, Russia)

  • Olga Aleksandrovna Zhdanova

    (Plekhanov Russian University of Economics, Stremyanny per., 36, Moscow, 117997, Russia)

Abstract

A dynamic analysis of the composition and structure of the oil and gas sector of the Russian economy was carried out in the study, a relationship between cyclical fluctuations of the world economy and energy prices was analyzed, and trends in world market prices for energy were studied. The authors identified basic systematic risks and uncertainties affecting investment decision-making in the Russian oil and gas sector and studied the peculiarities of making investment decisions. The academic novelty of the study is to propose specific ways to improve the investment decision-making of the Russian oil and gas business entities in the context of high macroeconomic risks to ensure sustainable growth of the Russian economy. The results obtained in the framework of the present study may be implemented by enterprises of the oil and gas industry and will also be of interest to other business structures in risk management, which is especially relevant in the context of high economic and geopolitical uncertainty. The paper presents mathematical models and justifies the choice of parameters to evaluate the fields taking the uncertainty into account. The approaches to formation of the investment decision-making policy based on real options method are proposed.

Suggested Citation

  • Denis Grigorievich Perepelitsa & Olga Aleksandrovna Zhdanova, 2017. "Peculiarities of Investment Decision-making in the Oil and Gas Industry Aimed to Ensure Sustainable Growth of the Russian Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 216-223.
    • Handle: RePEc:eco:journ2:2017-01-23
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    References listed on IDEAS

    as
    1. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
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    Cited by:

    1. Vladimir Kolmakov & Aleksandra Polyakova & Svetlana Karpova & Alla Golovina, 2019. "Cluster Development Based on Competitive Specialization of Regions," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 270-284.

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    More about this item

    Keywords

    Oil and Gas Sector; Oil and Gas Investment Projects; Oil Quotations; Decision-Making Models; Real Options;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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