Microeconomic analysis of crude oil production and investment spending growth rates in the oil sector of Russian economy

Authors: Sh.M. Valitov, A.B. Ankudinov, O.V. Lebedev (Kazan (Volga Region) Federal University, RF, Kazan)

E-mail:  ankudia@mail.ru

Key words: companies’ investments, oil companies, fixed effects model, panel data.

The article presents econometric analysis of crude oil production and investment spending determinants of Russian oil companies. The study is based on microeconomic data. Five hypotheses are tested to produce estimates of the effect profitability, financial leverage, lag value of revenue growth, age and size of the company have on crude oil production volumes and investment spending of the companies. Investment activity is analyzed in terms of rates of growth of oil companies’ property, plant and equipment, non-current assets and total assets. The sample is formed by 2004-2011 panel data for 200 companies with highest annual revenue, which according to All-Russia Classifier of Types of Economic Activity belong to the “Extraction of Crude Oil and Associated Gas”. Quantitative estimates are obtained of interdependence between financial and investment policies of oil companies as well as of investing activities in connection with companies’ life cycle.
References
1. Kontorovich A.E., Eder L.V., Nemov V.Yu., Neftyanoe khozyaystvo – Oil Industry,
2012, no. 7, pp. 66-70.
2. GP “TsDU TEK”. Osnovnye pokazateli raboty neftyanoy i gazovoy otrasley
toplivno-energeticheskogo kompleksa Rossii za yanvar'-mart 2012 g. (Key
performance indicators of the oil and gas industries of Russia in January-
March 2012 according to CDD FEC), Neftyanoe khozyaystvo – Oil Industry,
2012, no. 5, pp. 14-18.
3. Stata longitudinal data reference manual: Release 11.0, Texas: Stata Corporation,
College Station, Texas, 2009.

E-mail:  ankudia@mail.ru

Key words: companies’ investments, oil companies, fixed effects model, panel data.

The article presents econometric analysis of crude oil production and investment spending determinants of Russian oil companies. The study is based on microeconomic data. Five hypotheses are tested to produce estimates of the effect profitability, financial leverage, lag value of revenue growth, age and size of the company have on crude oil production volumes and investment spending of the companies. Investment activity is analyzed in terms of rates of growth of oil companies’ property, plant and equipment, non-current assets and total assets. The sample is formed by 2004-2011 panel data for 200 companies with highest annual revenue, which according to All-Russia Classifier of Types of Economic Activity belong to the “Extraction of Crude Oil and Associated Gas”. Quantitative estimates are obtained of interdependence between financial and investment policies of oil companies as well as of investing activities in connection with companies’ life cycle.
References
1. Kontorovich A.E., Eder L.V., Nemov V.Yu., Neftyanoe khozyaystvo – Oil Industry,
2012, no. 7, pp. 66-70.
2. GP “TsDU TEK”. Osnovnye pokazateli raboty neftyanoy i gazovoy otrasley
toplivno-energeticheskogo kompleksa Rossii za yanvar'-mart 2012 g. (Key
performance indicators of the oil and gas industries of Russia in January-
March 2012 according to CDD FEC), Neftyanoe khozyaystvo – Oil Industry,
2012, no. 5, pp. 14-18.
3. Stata longitudinal data reference manual: Release 11.0, Texas: Stata Corporation,
College Station, Texas, 2009.


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