Analysis Of Problems And Strategies In Oil And Gas Cooperation Between Russia And China:Survey From Both Sides

This paper is related to the analysis of the development of oil and gas economic relations between Russian and China.The paper is analyzing the current stage of the relations between countries,describing the existing and prospected cooperative projects and collaboration of the countries.The main purpose of the work is to make a research,define and investigate the current issues and factors,that prevent the steady development of these oil and gas relations between two countries,to obtain a subjective assessment of Russian and Chinese experts in the oil and gas sphere regarding the identification of problems and their impact on the development of oil and gas relations between countries.Based on the obtained results,to investigate the competitive advantages of the countries in the projects discussion process and propose the solutions and strategies for overcoming existing issues and maintaining the steady development of oil and gas relation between China and Russia.The sources used for the research are mainly scientific researches and outlooks related to the global oil and gas market,Russian and Chinese energy markets,articles describing the current stage of the energy relations between the countries and papers analyzing the main Chinese energy suppliers markets.Other important sources are science books about industry analysis,forces influencing the markets,competitive strategy development and generic offensive and defensive strategies on the market.The research design includes parts as identification of the research problem and justification of selection;review and synthesis of the published literature and scientific researches associated with the research goal;Qualitative research method was applied foe developing a deeper understanding of an arisen economic issues appearance,preventing the development of relations.This method includes tools as literature review,scientific papers and secondary data analysis,and focus group interview as Russian and Chinese oil and gas sector specialists are,for obtaining their perspective of the identified problems importance and degree of the influence on the development of energy relations between China and Russia.Results of the paper showed that China and Russia have potentially great abilities for becoming long-run strategic partners in oil and gas sector,the countries meet each-others requirements for being partners and setting up contracts and collaborative projects.However,some issues are currently preventing the development and mainly the issues are concerned the price negotiation process and dissatisfaction about the final prices,especially during the time of the global prices downshifting.Other issues are cost advantage competitors in this sector,substitution products,as liquefied natural gas,uncertainty in credibility of the partner to fulfill the agreed obligations,uncertainty in Chinese market growth and forecasted energy demand,long-run governmental fuel and energy complex strategies.This issues are proved,be the respondents,to be significant and have relatively high influence on the long-term development of oil and gas relations between the countries.The main solutions include strategic decisions,as acceptance of the additional costs for earning higher profits in the future,enter to the new markets and development of the logistic system,additional fund-rising and risks sharing,creation of the leverages using the substitutional sources.