| Publication |
2009.
|
| Summary/Abstract |
Record-high oil prices in the recent years brought an illusion with Russian oil and gas companies that their easy profits would continue forever. The financial crisis and the subsequent recession have taught them a harsh but useful lesson: even enormous hydrocarbon resources are not enough for prosperity.
Five Russian majors (Rosneft, LUKoil, TNK-BP, Surgutneftegaz and Gazprom-Oil) have more energy resources than the leading Western companies, while Gazprom is the world's leader in natural gas resources. However, the Russian corporations are behind their major rivals in terms of capitalization and stable position on the market. Owing to their diversified investment structure, international oil and gas companies influence the formation of the norms that provide stability both inside and beyond individual countries. Even their occasional performance setbacks in underdeveloped countries do not undermine their reputation as successful global players. Stability in the market helps them counteract the volatility of oil prices.
When oil prices were high, Russian companies could easily attract financial capital. Short-term profits earned them stable credit ratings and encouraged them to take long-term loans for large investments. However, the liquidity crisis froze many long-term investment projects
|