STRATEGIC MANAGEMENT CHALLENGES IN THE DEVELOPMENT OF ARCTIC OIL AND GAS FIELDS

• Published in: Север и рынок: формирование экономического порядка
• Main Author: Aleksey G. Kazanin
• Format: Article in Journal/Newspaper
• Language: English; Russian
• Published: The Russian Academy of Sciences, Federal Research Centre Kola Science Centre 2023
• Subjects: strategic management; principles; transformation; project; oil and gas companies; arctic; Social Sciences; H; Arctic
• Online Access: https://doi.org/10.37614/2220-802X.4.2023.82.001; https://doaj.org/article/b98ea8f94ac14974b433377c1355e67e

The current development of hydrocarbon fields in the Arctic necessitates innovation-driven solutions regarding technology and management. While extensive production experience exists in onshore projects, the complexities of offshore hydrocarbon fields, such as limited access and underdeveloped infrastructure, demand strategic decisions in an unstable market environment. Long-term in nature, these decisions require a comprehensive application of strategic management methods and tools. The irreversibility of economic processes associated with substantial investments and the potential for major financial losses in project failure underscore the importance of employing strategic management methodologies. Global factors such as fluctuating oil prices, geopolitical challenges, the rise of green energy, and heightened corporate social responsibility expectations in the oil and gas sector necessitate a reevaluation of fundamental principles in strategic management systems. This study employs logical and general research methods to classify and synthesize relevant literature, identifying strategic management issues and evolving principles and approaches in strategy formulation. Technical and economic aspects of project implementation onshore and offshore are highlighted. The article argues for the revision of strategic management principles in Arctic oil and gas projects, particularly in offshore field development. Conceptual models of functional strategies for business units implementing onshore and offshore projects are proposed.