The attractiveness of the BRICS and G7 countries in the global hydrocarbon market

Abstract

The increasing international political tensions and the growing use of economic sanctions in world markets have made it more important to compare the prospects for the development of major players in the global economy. The aim of this study is to evaluate the potential of the BRICS and G7 countries based on the attractiveness of their industries for other countries, including those from the Global South and East, which are still undecided about joining either group. To achieve this goal, the following objectives were set and achieved: to obtain statistically significant data on the capabilities of associations, taking into account the political and economic orientation of supranational organizations; to form and compare the financial and economic profiles of industry participants from BRICS, G7, and non-aligned countries; to assess the attractiveness and development potential of players in the BRICS and G7 markets. The methodology used has been based on regression analysis, comparative analysis, multidimensional analysis, and nonparametric testing of corporate financial statements from public companies in 2019 and 2020. The analysis of the images of the industry residents of BRICS, G7, and “neutral” countries has allowed to identify a trend toward increased polarization and growing differences between the BRICS and G7 members. The criteria for this trend are indicators of business margins, sales volumes, capital, and the volume of non-current assets. According to three out of four criteria, the overall image of an industry resident from BRICS is more attractive than that of from G7 due to multiple exceedances of the values of these criteria indicators. This serves as a clear example of the potential for undecided countries from the Global South and East to join this association and strengthens BRICS’ authority and development.