Sustainable Development and New Challenges of the Energy Market: Amendment on “New Normal”

Abstract

At present, the use of the term “new normal” as a new reality, characterizes a situation of challenge that requires a new model of economic development which would take into consideration current threats and risks. The article analyzes the possibility of implementing a concept of sustainable development in the context of new challenges at the energy market. Such challenges are the formation of the model of a low-carbon economy, the oversupply of hydrocarbons, and changing conditions of competition at the gas market. A key factor in restructuring the global energy industry is the reduction of greenhouse gas emissions. Carbon-free sources of energy rejecting traditional production technologies are becoming increasingly popular. Accelerated innovative development of the oil and gas sector of economy is an adequate response and a measure of Russia’s sensible reaction to the current challenges at the energy market. Innovative development of enterprises in the oil and gas sector is associated with a transition from the profit maximization model to the added value maximization model which forms an innovative vector of development of the industry. The article revisits the conditions for effectively using the global competitive advantages of the Russian Federation in the energy sector, and suggests measures of state support for creating favourable conditions for the innovative development of enterprises in the oil and gas sector.