Problems of innovative development of the oil and gas industry under modern challenges

Innovation is an essential condition for industrial enterprise's sustainable development and economic efficiency. Oil and gas enterprises, which play a key role in state's energy security, are no exception. The study examines the main scenarios for the global oil production development, identifies challenges facing the industry, and lists main factors hindering the spread of innovative technologies in the oil and gas sector. It is shown that the consequences of the COVID-19 pandemic, decreasing hydrocarbons demand, and sanctions pressure directly affect the innovative activities ofpetroleum industry organizations. The characteristics of the sector that hinder its digital transformation are also studied.