ISSN (print) - 0131-7652

ISSN (online) - 2686-7605

Vol. 50 No. 12 (2020)
ASPECTS OF REAL ECONOMY

About Market Capitalization of Oil and Gas Companies

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  • A. Balabin
A. Balabin
Institute of Economics and Industrial Engineering SB RAS; Novosibirsk State Technical University
Bio
DOI: https://doi.org/10.30680/ECO0131-7652-2020-12-84-99

Published 2020-12-02

Keywords

  • мarket capitalization,
  • oil and gas companies,
  • economic sanctions,
  • nationalization of oil and gas companies,
  • Rosneft,
  • Chevron
    • ...More
    Less

How to Cite

1.
Balabin А. About Market Capitalization of Oil and Gas Companies. ECO [Internet]. 2020 Dec. 2 [cited 2024 Nov. 4];50(12):84-99. Available from: https://ecotrends.ru/index.php/eco/article/view/4156

Abstract

The paper considers specific features of market capitalization through the performance of a public gas and oil company from Russia and another from the United States. The analysis is based on trading data on the London and New York stock exchanges for the period of 2006–2020. As proved in the paper, traditional factors affecting the market capitalization of oil and gas companies (crude oil prices, production levels, proven reserves, development of market infrastructure, etc.) cannot explain why the market capitalization of Russian companies lags behind their foreign counterparts. Neither can this gap be explained by economic sanctions imposed on companies in the Russian oil sector in 2014. As shown in the example of two similar companies, despite significant progress in the development of market infrastructure and corporate governance in Russia the gap in the market capitalization of Russian and American companies continues to increase consistently during the period under review. The reasons for a low market valuation of Russian oil and gas companies may presumably be attributed to the efforts of Russian authorities to return strategic energy assets under state control.
PDF (Русский)

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