Spatial Dynamics of the Oil and Gas Field Services Sector: Global Trends and Lessons for Russia

• Published in: Regional research of Russia 2018-07, Vol.8 (3), p.248-257
• Main Authors: Kryukov, V. A., Tokarev, A. N.
• Format: Article
• Language: English
• Subjects: Economics; Economics and Finance; Gas industry; Mineral resources; Oil and gas fields; Oil and gas industry; Production costs; Regional/Spatial Science; Slavic studies; Spatial Features of Sectoral Development
• ISSN: 2079-9705; 2079-9713
• DOI: 10.1134/S2079970518030036

It is shown that the global spatial organization of the oil and gas field services sector depends largely on the characteristics of assets available in the mineral resources sector and that Russian service companies still remain players in the regional league. Our analysis reveals the key role of oilfield service companies in the innovative processes in the oil and gas industry. Science-intensive services can significantly reduce the unit costs of reserves increment and production costs. Endogenous, network, and exogenous models are used to summarize the formation and development processes for the oil and gas component of regional innovation systems. It is shown that resource regions cannot follow a single model of innovative development targeting the needs of the oil and gas industry. These models should take into account a wide range of regional features. The results demonstrate the need to strengthen the role of resource regions in regulating the oil and gas field services sector and innovative processes in the oil and gas industry. The focus is on developing a methodology for studying innovative processes within regional socioeconomic systems and on providing practical recommendations for the development of the oil and gas field services sector in Russia’s resource regions.