Current state and main challenges of the refining industry in the cross-border region (on the example of Оrenburg region)

A. A. Bogdanov () and V. S. Bogdanova ()

Russian Journal of Industrial Economics, 2016, issue 1

Abstract: The article describes the current state of oil-processing industry and outlines the main problems of the of Orenburg region enterprises. A detailed analysis is provided considering and comparing with the experience of largest in the leading energy world companies (ExxonMobile, Shell, BP, etc.). It has been revealed that in the leading world companies the output/processing relation is less than «1» while the same indicator in domestic enterprises exceeds «1». That means that foreign enterprises are oriented on deep processing while the Russian enterprises are generally export focused. Besides, the oil-processing industry of the Orenburg region is characterized by high depreciation of fixed assets, low processing depth, high share of «dark» oil products in the total amount of products and as a result – low share of «light» products, that the share of high value added products is very small. The article presents measures to eliminate this disbalance, including tax incentives of release qualitative (highoctane) products. At the same time, at the oil processing enterprises of the region positive shifts reveal  already positive trends: the leading scientific institutes basing on domestic and world experience the development program, positive growth dynamics of oil refining, gradual improvement of motor fuels quality due to construction of new and modernization of the existing objects, cancel of ethylated autogasolines products, increase in a of the high-octane gasolines products and environment friendly diesel fuels corresponding to quality of EURO-5 products share. Authors consider that the package of measures presented in this article will provide a way to innovative and technological development not only of the oil-processing industry of the region, but also of the national economy in general.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2016:id:503

DOI: 10.17073/2072-1633-2016-1-19-25

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