The Exploration of Arctic Energy Resources and the Competitiveness of Big Russian Oil and Gas Companies

Green energy and the target of keeping global warming “well below” 2 degrees Celsius has a considerable impact on oil and gas companies’ activities. The oil market is going through the most substantial fundamental changes associated primarily with the technological revolution and the change in several countries’ “climatic” course. Over the past year, as COVID-19 destabilized the global economy and dramatically reduced energy consumption, falling demand for fossil fuels became clear, and the global energy paradigm began to unmistakably change. The upcoming energy transition is already having a significant impact on the activities of oil and gas companies, which are trying to adapt to dynamic changes while maintaining their competitiveness. The Arctic is seriously affected by climate change and, at the same time, is a place of the most significant oil and gas resources. Arctic oil extraction requires specific R&D. Countries and companies may disagree about how climate change is connected with oil and gas development projects. Oil demand and price forecasts are also uncertain, as the COVID-19 pandemic negatively impacted the global energy sector, yet oil will maintain its position as the dominant fuel in the medium term: it may be of interest in terms of the development of refining and petrochemicals. With the prospective decrease in the share of oil in the global energy balance, the Arctic has enormous gas reserves. At the same time, the situation regarding volumes of oil and gas production in the Arctic depends on a large number of various macroeconomic, geopolitical, market, technological and other factors.