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Economic Strategy for Developing the Oil Industry in Mexico by Incorporating Environmental Factors

Author

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  • Tatyana Semenova

    (Economics, Organization and Management Department, Saint Petersburg Mining University, 2, 21st Line, 199106 Saint Petersburg, Russia)

  • Juan Yair Martínez Santoyo

    (Economics, Organization and Management Department, Saint Petersburg Mining University, 2, 21st Line, 199106 Saint Petersburg, Russia)

Abstract

This article presents a methodological approach that can more effectively solve environmental problems related to the activities of oil companies. Traditionally, environmental factors have been seen as merely an additional cost that obstructs economic development. The contribution of the authors’ approach lies in the fact that it substantiates the need and the possibility to increase the potential for the functioning and development of the country, for the case of Mexico, while considering environmental factors on a scientific basis. This study proposes a methodology and, therefore, the selection of a strategy for the development of Mexico’s oil industry, ensuring an increase in its environmental and economic efficiency and the sustainability of its territorial functioning and development. The methodology presented in this article develops the concept of sub-potentials, which include the sub-potentials of reproduction, protection, management and development, and reserve. Sub-potentials, particularly the protection sub-potential, integrate environmental components. Neglecting environmental factors leads to an increase in the sub-potentials of the threat and deterrence. Environmental factors are analyzed as a part of a unified strategy for the development of the country, when presenting the formation of a comprehensive system of indicators using management guidelines and a three-dimensional assessment of the criteria for the development of the country’s oil and gas sector. The consequence of using this methodology is the integration of the environmental component of the development in the oil and gas sector into the country’s unified socio-economic strategy. This can effectively solve environmental problems and achieve socio-economic development goals. Consequently, incorporating the environmental aspect based on the proposed methodology permits the effective utilization of society’s limited resources. The application of this systematic approach, encompassing all levels of sustainable strategic development—the oil company, the industry, and the country—also yields additional synergies.

Suggested Citation

  • Tatyana Semenova & Juan Yair Martínez Santoyo, 2023. "Economic Strategy for Developing the Oil Industry in Mexico by Incorporating Environmental Factors," Sustainability, MDPI, vol. 16(1), pages 1-38, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2023:i:1:p:36-:d:1303372
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    References listed on IDEAS

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