Oil Shock Impact Upon Energy Companies Investment Portfolios. Trends and Evolutions in the Energy Consumption Sector

Dumiter, Florin Cornel; Turcaș, Florin Marius; Boiţă, Marius

doi:10.2478/sues-2023-0001

Abstract

In this article, we tackle the complex relationship between a triangle assessment: energy companies, investment portfolios, and the energy consumption sector. The first objective of this paper was to underline several important features of oil price evolution in the pandemic period, with a special focus both on the 2020 and 2022 periods, in order to reveal some aspects of new passengers’ cars registered, and some important energy sources worldwide. Second, it is highlighted several important features of energy-listed companies on the Bucharest Stock Exchange and of oil prices upon different operators. Third, we analyze important aspects of the influence of the crises regarding the energy industry and several important evolutions upon the stock market. The main findings of this study reveal the nexus between oil shock prices, the energy industry, and the stock market with an empirical focus on constructing an optimal investment portfolio’ by considering several consumption sectors. Future research on this topic will encounter consequently comparisons between several business models of different types of sectors.

References

1. Ahmed, M.M., Shimada, K. (2019), The Effect of Renewable Energy Consumption on Sustainable Economic Development: Evidence from Emerging and Developing Economies. Energies, 12, 1-15.10.3390/en12152954
Search in Google Scholar Back to article
2. Balukja, I. (2018), Evolution of Corporate Finance Methods. Juridical Tribune, 8(1), March, 306–312.
Search in Google Scholar Back to article
3. Cevik, E., Atukeren, E., Korkmaz, T. (2018), Oil Prices and Global Stock Markets: A Time-Varying Causality-In-Mean and Causality-in-Variance Analysis. Energies, 11, 1-22.10.3390/en11102848
Search in Google Scholar Back to article
4. De la Torre-Torres, O.V., Galeana-Figueroa, E., Alvarez-Garcia, J. A. (2020), Test of Using Markov-Switching GARCH Models in Oil and Natural Gas Trading. Energies, 13, 1-24.10.3390/en13010129
Search in Google Scholar Back to article
5. Dong, F., Shi, L., Ding, X., Shi, Y. (2019), Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard. Energies, 12, 1-23.10.3390/en12112147
Search in Google Scholar Back to article
6. Dumiter, F.C., Turcaș, F. (2022), Theoretical and Empirical Underpinnings regarding Stock Market Forecasts and Predictions. Studia Universitatis “Vasile Goldiș” Arad – Economics Series, 32(1), 1-19.10.2478/sues-2022-0001
Search in Google Scholar Back to article
7. Fremouw, M., Bagaini, A., De Pascali, P. (2020), Energy Potential Mapping: Open Data in Support on Urban Transition Planning. Energies, 13, 1-15.10.3390/en13051264
Search in Google Scholar Back to article
8. Glensk, B., Madlener, R. (2018), Fuzzy Portfolio Optimization of Power Generation Assets. Energies, 11, 1-22.10.3390/en11113043
Search in Google Scholar Back to article
9. Haugom, E., Molnar, P., Tysdahl, M. (2020), Determinants of the Forward Premium in the Nord Pool Electricity Market. Energies, 13, 1-18.10.3390/en13051111
Search in Google Scholar Back to article
10. Hong Vo, D., Ngoc Vu, T., The Vo, A., McAleer, M. (2019), Modeling the Relationship between Crude Oil and Agricultural Commodity Prices. Energies, 12, 1-41.10.3390/en12071344
Search in Google Scholar Back to article
11. Hoque, M.E., Low, S.W., Shah Zaidi, M.A. (2020), Do Oil and Gas Risk Factors Matter in the Malaysian Oil and Gas Industry? A Fama-Macbeth Two-Stage Panel Regression Approach. Energies, 13, 1-15.10.3390/en13051154
Search in Google Scholar Back to article
12. Janczura, J., Michalak, A. (2020), Optimization of Electric Energy Sales Strategy Based on Probabilistic Forecasts. Energies, 13, 1-16.10.3390/en13051045
Search in Google Scholar Back to article
13. Jimon, Ș.A., Dumiter, F.C., Balteș, N. (2021), Financial Sustainability of Pension Systems. Empirical Evidence from Central and Eastern European Countries. Springer: Financial and Monetary Policy Studies 52. Springer.10.1007/978-3-030-74454-0
Search in Google Scholar Back to article
14. Kim, S., Kim, S-Y., Choi, K. (2019), Analyzing Oil Price Shocks and Exchange Rates Movements in Korea using Markov regime-switching Models. Energies, 12, 1-16.10.3390/en12010001
Search in Google Scholar Back to article
15. Kriskkumar, K., Naseem Mohd, N.A. (2019), Analysis of Oil Price Effect on Economic Growth on ASEAN Net Oil Exporters. Energies, 12, 1-19.10.3390/en12173343
Search in Google Scholar Back to article
16. Lang, P., Gregory, K.B. (2019), Economic Impact of Energy Consumption Change Caused by Global Warming. Energies, 12, 1-29.10.3390/en12183575
Search in Google Scholar Back to article
17. Lin, B-J., Tsai, W. (2019), The Relationship of Oil Price Change with Fear Gauges in Global Political and Economic Environment. Energies, 12, 1-17.10.3390/en12152982
Search in Google Scholar Back to article
18. Liu, G., Hamori, S. (2020), Can One Reinforce Investments in Renewable Energy Stock Indices with the ESG Index? Energies, 13, 1-19.10.3390/en13051179
Search in Google Scholar Back to article
19. Machorro-Cano, I., Alor-Hernandez, G., Paredes-Valverde, M.A., Rodriguez-Mazahua, L., Sanchez-Cervantes, J.L., Olmedo-Aguirre, J.O. (2020), HEMS-IoT: A Big Data and Machine Learning-Based Smart Home System for Energy Saving. Energies, 13, 1-24.10.3390/en13051097
Search in Google Scholar Back to article
20. Mari, C. (2018), CO₂ Price Volatility Effects on Optimal Power System Portfolios. Energies, 11, 1-18.10.3390/en11071903
Search in Google Scholar Back to article
21. Martinez-Fernandez, P., de Llano-Paz, F., Calvo-Silvosa, A., Soares, I. (2019), Assessing Renewable Energy Sources for Electricity (RES-E) Potential Using CAPM-Analogous Multi-Stage Model. Energies, 12, 1-20.10.3390/en12193599
Search in Google Scholar Back to article
22. Meadows, D.H., Meadows, D.L., Randers, J., Behrens, W.W. (1972), The Limits of Growth. A Report of the Rome’s Club Project on the Predicament of Mankind. Universe Books, New York.10.1349/ddlp.1
Search in Google Scholar Back to article
23. Nichifor, E., Trifan, A., Nechifor, E.M. (2016), Artificial Intelligence in Electronic Commerce: Basic Chabots and the Consumer Journey. Amfiteatru Economics, 23(56), 87-101.10.24818/EA/2021/56/87
Search in Google Scholar Back to article
24. Novackova, D., Peracek, T., Strazovska, L., Mucha, B. (2020), Financial Crime in Economic Affairs: Case Study of the Slovak Republic. Juridical Tribune, 11, Special Issue, October, 142-163.
Search in Google Scholar Back to article
25. Perifanis, T., Dagoumas, A. (2018), Price Volatility Spillovers Between the US Crude Oil and Natural Gas Wholesale Markets. Energies, 11, 1-25.10.3390/en11102757
Search in Google Scholar Back to article
26. Sanchez de la Nieta, A.A., Gonzalez, V., Contreras, J. (2016), Portfolio Decision of Short-Term Electricity Forecasted Prices through Stochastic Programming. Energies, 9, 1-19.10.3390/en9121069
Search in Google Scholar Back to article
27. Shine, P., Upton, J., Sefeedpari, P., Murphy, M.D. (2020), Energy Consumption on Dairy Farms: A Review of Monitoring, Prediction Modelling, and Analyses. Energies, 13, 1-25.10.3390/en13051288
Search in Google Scholar Back to article
28. Sifakis, N., Daras, T., Tsoutsos, T. (2020), How Much Energy Efficient are Renewable Energy Sources Cooperatives’ Initiatives? Energies, 13, 1-22.10.3390/en13051136
Search in Google Scholar Back to article
29. Simshauser, P. (2019), On the Stability of Energy-Only Markets with Government-Initiated Contracts-for-Differences. Energies, 12, 1-24.10.3390/en12132566
Search in Google Scholar Back to article
30. Son, D., Kim, J., Jeong, B. (2019), Optimal Operational Strategy for Power Producers in Korea Considering Renewable Portfolio Standards and Emissions Trading Schemes. Energies. 12, 1-24.10.3390/en12091667
Search in Google Scholar Back to article
31. Taddeo, P., Colet, A., Carrillo, R.E., Casals Canals, L., Schnubnel, B., Stauffer, Y., Bellanco, I., Corchero Garcia, C., Salom, J. (2020), Management and Activation of Energy Flexibility at Building and Market Level: A Residential Case Study. Energies, 13, 1-18.10.3390/en13051188
Search in Google Scholar Back to article
32. Vandyck, T., Kitous, A., Savevyn, B., Keramidas, K., Los Santos, L.R., Wojtowicz, K. (2018), Economic Exposure to Oil Price Shocks and the Fragility of Oil-Exporting Countries. Energies, 11, 1-19.10.3390/en11040827
Search in Google Scholar Back to article
33. Yang, L., Yang, L., Ho, Kung-Cheng; Hamori, S. (2019), Determinants of the Long-Term Correlation between Crude Oil and Stock Market. Energies, 12, 1-15.10.3390/en12214123
Search in Google Scholar Back to article

Oil Shock Impact Upon Energy Companies Investment Portfolios. Trends and Evolutions in the Energy Consumption Sector

Abstract

Paradigm

My account