MULTILEVEL DEVELOPMENT STRATEGIES FOR THE ARCTIC OIL AND GAS SECTOR

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Aleksey G. Kazanin

Luzin Institute for Economic Studies of the Kola Science Centre of the Russian Academy of Science, Apatity, Russia, ORCID 0000-0003-2526-8786

 

Abstract. The balanced development of the hydrocarbon potential in the Arctic is currently a strategic priority for Russia.  Given the present conditions of the global energy sector, alongside new geopolitical challenges and trends towards low-carbon and ecologically balanced development, there is a need for a system of coordinated strategies across the industry, regional, and corporate levels. To effectively develop Arctic oil and gas resources, it is necessary to ensure technological sovereignty, which involves equipping oil and gas companies with domestically produced equipment and software. Strategies should also focus on the development of industries that produce high value-added products, particularly in the petrochemical sector.  Public administrators and corporate managers responsible for key decisions must have a clear, long-term vision for the development of the Arctic oil and gas sector and employ established methodological approaches in strategy design. The goal of this study is to substantiate the specific characteristics of multilevel strategies and assess the feasibility of using a matrix approach when designing strategic alternatives relevant to the current economic environment. The research methodology is based on the approaches, methods, and tools of strategic management and planning, with a particular focus on methods for designing strategic alternatives. The novelty of the research lies in the development of a system of criteria for comparing strategies and their target priorities at the industry, regional, and corporate levels. The study identifies current trends and challenges arising from the energy transition, stringent sanctions policies, and growing technological capabilities. It proposes an approach to designing alternative strategies of related and unrelated diversification for oil and gas companies. Developing a holistic concept of coordinated industry and corporate strategies is identified as a promising area for further research.

Keywords: strategy, Arctic, oil and gas industry, region, companies, comparison, development, diversification, matrix methods, alternatives

For citation: Kazanin A. G. Multilevel development strategies for the Arctic oil and gas sector. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2024, no. 3, pp. 123–135. doi:10.37614/2220-802X.3.2024.85.008.

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