The article analyzes long-term changes in the institutional conditions governing the functioning of global oil and gas markets. The oil market is shifting from a “seller’s market” to a “buyer’s market” amid slowing demand growth and expanding supply. Competition now occurs not only among major suppliers, but also between oil products and alternative energy sources. In the gas market, the transition to excess supply over demand is less evident, yet fundamental changes in consumption patterns are taking shape. Seasonal fluctuations are increasingly compounded by daily and even hourly irregularities, driven by the stochastic production of renewable energy, for which gas serves as a reserve fuel. As a result, the risks of price volatility rise significantly, especially as more transactions are conducted on a spot basis. In light of these transformations in global hydrocarbon markets, Russian gas companies and regulators must adapt. Companies are required to adjust their business models, while regulators need to revise pricing and tax policies. Whereas the oil industry has already introduced flexible tax regimes and incentives for refining, the gas sector lags behind. Most of the tax burden on Russian gas companies remains insensitive to sales conditions, and for many years the industry has operated under cross-subsidization of the domestic market through exports. This situation calls for a profound revision of state policy in the gas sector.
oil and gas markets; energy policy; pricing; taxation; adaptation to external changes; inter-fuel competition; changing market conditions.