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Creating an Energy Analysis Concept for Oil and Gas Companies: The Case of the Yakutiya Company in Russia

Author

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  • Jun Yan

    (School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

  • Lianyong Feng

    (School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

  • Alina Steblyanskaya

    (School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China)

  • Anton Sokolov

    (Stroygazconsulting (SGC) Company, Tashakentskaya Street, St. Petersburg 196084, Russia)

  • Nataliya Iskritskaya

    (The Laboratory of Examinations of licenses and license agreements, All-Russia Petroleum Research Exploration Institute (VNIGRI), Saint-Petersburg 191014, Russia)

Abstract

Recently, energy analysis has been added to Russian gas companies’ annual reporting system. This new practice indicates that corporate reports are improving their analyses by addressing energy issue and the financial efficiency of energy production. However, the use of summary energy indicators is limited in these annual reports. In this paper we review the history of energy analysis in Russia from the early USSR period to today. Under the guidance of energy return on investment (EROI), we compare energy efficiency indicators with financial efficiency coefficients. The results show that the value of the return on cost of sales (ROCS) is negative in certain instances, while the value of the energy return on cost of sales (EROCS) is extremely high under the example of the Russian energy company JSC “YATEC.” Money-based indicator values (ROCS and return on fix assets (ROFA)) fluctuate with internal company financial management goals, and from the outside depending on market prices. Meanwhile energy-based values (EROCS) remain stable. Added financial analysis and energy analysis in companies’ annual statements will supplement each other in practice and will present the full picture for company efficiency analysis.

Suggested Citation

  • Jun Yan & Lianyong Feng & Alina Steblyanskaya & Anton Sokolov & Nataliya Iskritskaya, 2019. "Creating an Energy Analysis Concept for Oil and Gas Companies: The Case of the Yakutiya Company in Russia," Energies, MDPI, vol. 12(2), pages 1-18, January.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:2:p:268-:d:198202
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