THE IMPACT OF REGULATORY POLICY ON THE COMPETITIVENESS OF THE OIL REFINING INDUSTRY

Abstract

The oil refining industry plays a crucial role in ensuring energy security and economic stability. This study explores the economic dimensions of the sector, analyzing its market trends, investment risks, and regulatory challenges. The industry's dependence on crude oil imports, outdated infrastructure, and the necessity for large-scale modernization are identified as key concerns. State regulation is a decisive factor in the sector's operation, encompassing tax policies, environmental regulations, and investment incentives. The European Union directives and global agreements such as the Paris Agreement impose stringent environmental standards, necessitating technological advancements in oil refining processes. Another pressing issue is the industry's adaptation to global demand shifts, driven by the transition to renewable energy sources and electrification of transportation. The study examines how companies can integrate innovative technologies to enhance efficiency, reduce emissions, and maintain competitiveness in the evolving energy landscape. The research also evaluates the balance between regulatory frameworks and economic viability, exploring the role of government subsidies, carbon taxation, and international trade policies in shaping the industry's future. The study highlights the necessity of strategic planning in navigating the complexities of the global energy transition, ensuring the industry's resilience and continued contribution to economic growth.The article examines the economic aspects of the oil refining industry and its regulatory policies in modern conditions. The study analyzes key market trends, factors affecting the profitability of enterprises, and investment risks. Particular attention is paid to state regulation, its mechanisms, and the influence of international standards. The main challenges facing the industry are identified, including the need for production modernization, ensuring energy independence, and adapting to global changes in the demand for petroleum products. The paper highlights regulatory prospects and suggests directions for further research, particularly on the effectiveness of state mechanisms for stimulating innovation.