METHODS OF WORKING CAPITAL MANAGEMENT IN ORDER TO ENSURE THE LIQUIDITY OF THE COMPANY IN THE OIL AND GAS PRODUCTION SECTOR

Abstract

Efficiency as one of the criteria for managing working capital in oil and gas production is ensured by the continuity of the production process and requires careful planning of capital requirements, taking into account production volumes, geography of deposits, seasonality. The detailing of the working capital management process provides for several components: a) restructuring of stocks in order to minimize storage costs and losses from spoilage, obsolescence, theft; b) accelerating the turnover of accounts receivable; c) development of risk management strategies related to fluctuations in oil and gas prices, currency risks and geopolitical instability. The high turnover of working capital characteristic of the industry requires companies to carefully manage and plan carefully, taking into account factors such as production volumes, geographical location of deposits and seasonal fluctuations. Difficult operating conditions, including inaccessibility and extreme climatic conditions, increase industry dependence on working capital, requiring the creation of additional reserves to ensure smooth operation. The information and analytical materials that served as the basis for the development and adoption of management decisions aimed at improving the efficiency of working capital management include information about the actual state of affairs, problems, and trends in the company's working capital management system. From the position of the corporate structure, working capital management stands out as one of the most important areas of financial activity, which is institutional within the company and is carried out in accordance with norms and standards.