Mlaabdal Saady Mahmood Abaas
The Prerequisites of National Economy Oil Industry Development
(original language – Ukrainian)
https://doi.org/10.21272/mer.2019.83.07
The country's energy security is an important component of the national security of any state. In countries where the oil sector is the development determinant of the national economy, the functioning of all other sectors and the satisfaction of the population needs in energy resources depends on the efficiency of the industry operation. Therefore, it is relevant to study the prerequisites for the development of the oil-producing industry of Ukraine in the context of the formation of perspective ways of its development and modernization. The article analyzes the Ukraine’s' oil-producing potential, its current state and directions of development. At the same time, the author emphasizes that the availability of sufficient oil reserves in Ukraine creates preconditions for ensuring energy independence in the near future. In the paper, the author emphasizes that the current challenges in the oil sector for Ukraine are: the balance of exports and imports, increasing of own oil production, reduction of monopolization and creation of competitive, transparent energy markets. An analysis of the oil and gas industry functioning and the domestic market of oil and petroleum products made it possible to distinguish the relevant trends of its development. At the same time, it was concluded that the oil refining sector of the oil complex is one of the low efficient branches in the industry. The paper identifies the main negative trends in the development of the oil industry in Ukraine: the lack of a comprehensive state program for the industry development, a lack of investment in exploration, unsystematic and slow reform of the oil sector, unsustainable rental and tax rules, and the unresolved issues connected with environment protection, which lead to regression of the domestic oil-producing complex. In order to develop the oil industry in Ukraine and increase the efficiency of its functioning, the author has formed the directions of state regulation that will stimulate the development of the oil-extracting industry in Ukraine.
Key words: oil-extracting complex, oil production, energy security, efficiency, state regulation.
Placed in №1, 2019.
Affiliations: MLAABDAL SAADY MAHMOOD ABAAS, Postgraduate Student of the Department of Economics, Entrepreneurship and Business Administration, Sumy State University
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