IDEAS home Printed from https://ideas.repec.org/a/rnp/ecopol/ep1747.html
   My bibliography  Save this article

Quantification and Risk Assessment of Hydrocarbon Resources Development Projects in the Arctic Region
[Квантификация И Оценка Рисков Проектов Добычи Углеводородных Ресурсов В Арктике]

Author

Listed:
  • Dudin, Mikhail N. (Дудин, Михаил)

    (Russian Presidential Academy of National Economy and Public Administration)

  • lyasnikov, Nikolai V. (Лясников, Николай)

    (Russian Presidential Academy of National Economy and Public Administration)

  • Protsenko, Oleg D. (Проценко, Олег)

    (Russian Presidential Academy of National Economy and Public Administration)

  • Tsvetkov, Valery A. (Цветков, Валерий)

    (Russian Presidential Academy of National Economy and Public Administration)

Abstract

The article outlines the main scientific and methodological views and approaches to risk measurement of the projects related to extraction of hydrocarbon resources in the Arctic. Special attention is paid to the methods of quantification of risks of the Arctic projects, i. e. those risks which have no definite value or quantitative expression and must be estimated using verbal and mathematical transformations. Regarding quantification of risks of the Arctic projects related to the extraction of hydrocarbon resources, the article proposes a methodology based on integration of financial, econometric, and economic methods which allows to convert original information into a comparable magnitude. Testing methods using the example of two Arctic projects have shown that risks in these projects are above average. This, in turn, may affect the environment and economic efficiency of the hydrocarbon production in the Arctic. The methodical approach proposed by the authors gives an adaptive tool that can also be used in order to analyze and measure the risk of other capital investment projects in the energy sector. As a key conclusion, the authors specify that the quantification of the risks, as well as publication of the data on the level of risks of the Arctic projects, will undoubtedly contribute to improving transparency of the activities of international and Russian oil and gas corporations. In turn, this will ensure growth of social and environmental responsibility of corporate structures which suggests that exploration, as well as work related to the production of hydrocarbon resources in the Arctic, will meet modern scientific and management paradigm (socialization, greening activities providing sustainable development of corporate and business structures).

Suggested Citation

  • Dudin, Mikhail N. (Дудин, Михаил) & lyasnikov, Nikolai V. (Лясников, Николай) & Protsenko, Oleg D. (Проценко, Олег) & Tsvetkov, Valery A. (Цветков, Валерий), 2017. "Quantification and Risk Assessment of Hydrocarbon Resources Development Projects in the Arctic Region [Квантификация И Оценка Рисков Проектов Добычи Углеводородных Ресурсов В Арктике]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 4, pages 168-195, August.
    • Handle: RePEc:rnp:ecopol:ep1747
    as

    Download full text from publisher

    File URL: https://repec.ranepa.ru/rnp/ecopol/ep1747.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alessandro Clerici & Bruno Cova & Gabriele Callegari, 2015. "Decarbonization of the Electrical Power Sector in Europe: An Asset, An Opportunity or a Problem?," Energy & Environment, , vol. 26(1-2), pages 127-142, January.
    2. Christoph Humrich, 2013. "Fragmented International Governance of Arctic Offshore Oil: Governance Challenges and Institutional Improvement," Global Environmental Politics, MIT Press, vol. 13(3), pages 79-99, August.
    3. Harsem, Øistein & Eide, Arne & Heen, Knut, 2011. "Factors influencing future oil and gas prospects in the Arctic," Energy Policy, Elsevier, vol. 39(12), pages 8037-8045.
    4. Ren, Jingzheng & Gao, Suzhao & Tan, Shiyu & Dong, Lichun & Scipioni, Antonio & Mazzi, Anna, 2015. "Role prioritization of hydrogen production technologies for promoting hydrogen economy in the current state of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1217-1229.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mihail Nikolaevich Dudin & ?vgenia ?vgenevna Frolova & Julia Alexandrovna Artemieva & Vitaliy Vasil evich Bezbah & Alexey Nikolaevich Kirsanov, 2016. "Problems and Perspectives of BRICS Countries Transfer to Green Economy and Law-carbon Energy Industry," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 714-720.
    2. Kushlin, Valery Ivanovich (Кушлин, Валерий Иванович) & Ustenko, V.S. (Устенко, В.С.), 2016. "Analysis of International Experience of Intensification of Scientific and Innovative Activity in the Modern Unstable Conditions [Анализ Международного Опыта Активизации Научно-Инновационной Деятель," Working Papers 2832, Russian Presidential Academy of National Economy and Public Administration.
    3. Newbery, David & Pollitt, Michael G. & Ritz, Robert A. & Strielkowski, Wadim, 2018. "Market design for a high-renewables European electricity system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 695-707.
    4. Leroux, Justin & Spiro, Daniel, 2018. "Leading the unwilling: Unilateral strategies to prevent arctic oil exploration," Resource and Energy Economics, Elsevier, vol. 54(C), pages 125-149.
    5. Mardani, Abbas & Zavadskas, Edmundas Kazimieras & Khalifah, Zainab & Zakuan, Norhayati & Jusoh, Ahmad & Nor, Khalil Md & Khoshnoudi, Masoumeh, 2017. "A review of multi-criteria decision-making applications to solve energy management problems: Two decades from 1995 to 2015," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 216-256.
    6. Botelho, Tatiana & Magrini, Alessandra & Schaeffer, Roberto, 2014. "Plumbing the depths: Utilizing O&G reserve profiles to develop forward-looking risk assessments for exploration and production activities," Energy Policy, Elsevier, vol. 69(C), pages 489-500.
    7. Mihail Nikolaevich Dudin & ?vgenia ?vgenevna Frolova & Petr Aleksandrovich Kucherenko & Vitaly Aleksandrovic Vernikov & Natalia Andreevna Voykova, 2016. "China in Innovative Development of Alternative Energy Advanced Industrial Technologies," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 537-541.
    8. Fontaínhas, José & Cunha, Jorge & Ferreira, Paula, 2016. "Is investing in an electric car worthwhile from a consumers' perspective?," Energy, Elsevier, vol. 115(P2), pages 1459-1477.
    9. Fanny Groundstroem & Sirkku Juhola, 2019. "A framework for identifying cross-border impacts of climate change on the energy sector," Environment Systems and Decisions, Springer, vol. 39(1), pages 3-15, March.
    10. Mendes, Pietro A.S. & Hall, Jeremy & Matos, Stelvia & Silvestre, Bruno, 2014. "Reforming Brazil׳s offshore oil and gas safety regulatory framework: Lessons from Norway, the United Kingdom and the United States," Energy Policy, Elsevier, vol. 74(C), pages 443-453.
    11. Elena S. Balashova & Elizaveta A. Gromova, 2017. "Norwegian Experience as a Promising Measure for the Russian Energy System Development," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 31-35.
    12. Kumar, Sourabh & Kumar Barua, Mukesh, 2022. "Modeling and investigating the interaction among risk factors of the sustainable petroleum supply chain," Resources Policy, Elsevier, vol. 79(C).
    13. Max Zhang & Xiaonan Yang, 2022. "The Regulatory Perspectives to China’s Emerging Hydrogen Economy: Characteristics, Challenges, and Solutions," Sustainability, MDPI, vol. 14(15), pages 1-20, August.
    14. Coco Smits & Jan Tatenhove & Judith Leeuwen, 2014. "Authority in Arctic governance: changing spheres of authority in Greenlandic offshore oil and gas developments," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 14(4), pages 329-348, November.
    15. Alanne, Kari & Cao, Sunliang, 2017. "Zero-energy hydrogen economy (ZEH2E) for buildings and communities including personal mobility," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 697-711.
    16. Jens Heidingsfelder & Markus Beckmann, 2020. "A governance puzzle to be solved? A systematic literature review of fragmented sustainability governance," Management Review Quarterly, Springer, vol. 70(3), pages 355-390, August.
    17. Frederiksen, Anders & Kadenic, Maja Due, 2016. "Mining in Arctic and Non-Arctic Regions: A Socioeconomic Assessment," IZA Discussion Papers 9883, Institute of Labor Economics (IZA).
    18. Mei, Mei & Chen, Zhihua, 2021. "Evaluation and selection of sustainable hydrogen production technology with hybrid uncertain sustainability indicators based on rough-fuzzy BWM-DEA," Renewable Energy, Elsevier, vol. 165(P1), pages 716-730.
    19. Schaeffer, Roberto & Szklo, Alexandre Salem & Pereira de Lucena, André Frossard & Moreira Cesar Borba, Bruno Soares & Pupo Nogueira, Larissa Pinheiro & Fleming, Fernanda Pereira & Troccoli, Alberto & , 2012. "Energy sector vulnerability to climate change: A review," Energy, Elsevier, vol. 38(1), pages 1-12.
    20. Yana Korneeva, 2022. "The Adverse Environmental Impact Factors Analysis on Fly-In-Fly-Out Personnel at Industrial Enterprises," IJERPH, MDPI, vol. 19(2), pages 1-30, January.

    More about this item

    Keywords

    oil and gas; the Arctic shelf; stocks of raw materials; risks; Arctic projects; risk assessment techniques; quantification.;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnp:ecopol:ep1747. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RANEPA maintainer (email available below). General contact details of provider: https://edirc.repec.org/data/aneeeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.