Analysis of Sustainable Development Factors in Fuel and Energy Industry and Conditions for Achievement Energy Efficiency and Energy Security

Abstract

Focus on sustainable development is a necessary condition for effective operation of any economic entity (state, region, production industry, or an organization). But in today's economic conditions a lot of Russian companies fail to take into account current economic and political challenges in their development strategies quickly enough. This is primarily caused by failure to respond quickly to rapidly changing market conditions, and to modify their social and economic functioning model respectively. In such circumstances the necessity to ensure company's sustainable development efficient strategic management based on a system-oriented analysis of internal and external factors increases. Gas consumption share constitutes over 52% of the total primary energy resources consumption, and the draft Russian Energy Strategy supposes no significant changes in energy consumption mix up to 2035. This indicates the need in an extremely balanced approach to introduction of any changes into functioning conditions of the gas industry. Russia is the 3rd world's energy consumer, but its consumption rate per a unit of its gross domestic product (GDP) is higher than the one of any other country from Top-10 energy consumers. In addition to objective prerequisites (severe climatic conditions, large distances and, respectively, high energy resources transportation costs), high specific consumption of natural gas in national economy results from use of out-of-date energy wasteful technology. Russian economy is characterized by persistent energy resources wasting trend, resulting in unreasonable expenses of a community for energy self-supply, and, in addition to maintaining of energy resource oriented scenario of the country development, increases an energy resources availability lack risk. Russian oil and gas industry (OGI) operates in conditions of exhausted industrial potential; it faces significant problems, preventing its development and threatening energy security of the country (Chernyaev, 2014). Such circumstances result in the need for including active measures in the field of sustainable development into oil gas companies' strategies, whilst increasing significance of preparation of the companies' non-financial reporting. The authors herein tried to analyze current system of sustainable development factors and to give recommendations on formation of a system of sustainable development factors within fuel and energy entities.Keywords: Russian oil and gas industry (OGI), factors and indices of sustainable development, energy efficiency and energy security, energy development strategy.JEL Classifications: L90, O10