Price Policy as a Direction of Provision in the Oil and Gas Sector's Resource Efficiency

Price Policy as a Direction of Provision in the Oil and Gas Sector's Resource Efficiency

Nadiia Shmygol, Olga Galtsova, Olena Saienko, Ruslan Zavgorodniy
DOI: 10.4018/IJITPM.311847
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Abstract

In this study it is proved that today the economy of Ukraine depends on external sources of supply of these energy resources, which negatively affects its energy security. Ways to overcome this dependence are: development and expansion of own oil and gas production; implementation of energy-saving measures at processing enterprises; a departure from primary resource processing and a reorientation of the economy to high-tech products; diversification of supply sources of energy resources. In view of the above, managing the effective development of Ukraine's oil and gas sector is an actual scientific issue that needs to be addressed. So the practical aspects of implementing the Leontiev's input-output model based on the activity of the oil and gas sector were further developed, which, unlike the existing ones, made it possible to establish a relationship between the pricing policy of the industries and their resource efficiency.
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3. Results And Discussion

According to 2018 data [1], Ukraine's energy balance consisted of a total supply of primary energy of 93165 thousand tonnes of oil equivalent. Including, crude oil, petroleum products and natural gas accounted for 39,132 thousand tonnes, or 42.0% of total energy resources. They are followed by coal and peat (27587 thousand tonnes, or 29.6%) and nuclear energy (22145 thousand tonnes, or 23.8%).

According to the data of statistical tables «input-output» [2] in 2018, the largest sectoral consumers of crude oil and natural gas in Ukraine were: processing industry (UAH 115969 millions or 46.0%); production and distribution of electricity, gas and water (UAH 65117 millions or 25.8%); transport (UAH 39269 millions or 15.6%).

Taking into account the sectoral intermediary consumption, needs of the population and public administration, the total amount of oil and gas consumption over the specified period amounted to UAH 283586 billions, of which import amounted to UAH 120203 millions, or 42.4%. Thus, today the economy of Ukraine depends on external sources of supply of these energy resources, which negatively affects its energy security. Ways to overcome this dependence are:

  • -

    development and expansion of own oil and gas production;

  • -

    implementation of energy-saving measures at processing enterprises; a departure from primary resource processing and a reorientation of the economy to high-tech products;

  • -

    diversification of supply sources of energy resources.

In view of the above, managing the effective development of Ukraine's oil and gas sector is an actual scientific issue that needs to be addressed.

In the conditions of economic functioning which is oriented on primary processing of resources, one of the most effective directions to increase the production efficiency is reduction of resource intensity of production. Considering that according to 2018 data, the value-added share throughout the Ukrainian economy was 40.0% of the total output, and intermediate consumption was 60.0%, the problem of growth of resource productivity in industrial production is extremely urgent today. Therefore, we will conduct an appropriate study of resource efficiency of the oil and gas sector during 2015-2018, with the exception of the temporarily occupied territories of Donetsk, Luhansk regions and the Autonomous Republic of Crimea.

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