STRATEGIC PLANNING AND FORECASTING: CHANGING ROLE UNDER INSTABILITY OF ENERGY SECTOR

• Published in: Север и рынок: формирование экономического порядка
• Main Authors: Alina A. Ilinova, Victoriya M. Solovyova
• Format: Article in Journal/Newspaper
• Language: English; Russian
• Published: The Russian Academy of Sciences, Federal Research Centre Kola Science Centre 2021
• Subjects: strategic management; forecasting; planning; oil and gas companies; arctic; energy sector; instability; turbulence; Social Sciences; H; Arctic
• Online Access: https://doi.org/10.37614/2220-802X.2.2021.72.005; https://doaj.org/article/4d79ae754ba24b6bb3c60323f063e3d5

Development of the hydrocarbon potential is one of the main priorities for Russia. However, recent trends in the global energy sector have proven its volatility and instability (the impact of post-pandemic conditions, high price volatility, and rapid development towards green energy). The resulting uncertainty in the turbulent oil and gas sector itself places new demands on the strategic behavior of oil and gas companies, especially within strategic business units related to the implementation of high-risk projects (using the Arctic oil and gas sector as an example). All these are invariably associated with the transformation of the strategic management system. The paper defines the role of strategic forecasting and planning in the system of strategic management. The analysis of trends in the global energy sector, identifying key challenges for the strategic development of oil and gas companies, has carried out. The necessity of reviewing the role and essence of the basic functions of strategic management has been substantiated. A conceptual vision of the transformation of the essence and objectives of strategic analysis, forecasting and planning at the level of oil and gas companies in the context of global shocks was proposed.