In the frame of this thesis research, the theoretical generalization was conducted and a new scientific and applied problem solution has been proposed to improve the theoretical and scientific-methodological approach to provide the sustainable development of oil industry in the national economic system. This research paper introduces the sustainable development determination of oil industry in the national economic system as a development process of oil industry capacity taking into account the interference effects of the oil-dependent industries cross-sectoral interaction of the national economy, that ensures the differential leveling of socioecological and economic contradictions in the development of national economy as well as energy security improvement and national economy stability. The measurement focused on providing the sustainable development of the oil industry in the national economic system design to prevent the appearance of the negative, economic, institutional, social effects of the national economy functioning. The improved concept of government regulation of oil industry of national economy formulated having taken account the basic parameters of national economy development, principles and multiplication effects of the cross-sectoral relationship of national economy stakeholders, connects the following basic subsystems: institutional (to formulate the stimulation of the institutional surround with an opportunity to use the corresponding tools for different hierarchy levels of national economy); economic (to provide the fiscal and stimulating functions of the government control of oil industry in national economy); organizational (to develop organizational platform in order to effective realization of the strategical and tactical tasks of oil industry development). In the research the conflicts in national economy are classified by the following criteria: the level of involvement of national economic agents (international, national, regional, local); the stages (phases) of national economy activity (in the exploration and discovery of oil reservoirs, in the determination and distribution of permits, in identifying and contributing accesses to mineral resources and production infrastructure, in oil production, in the distribution of oil revenues, in the reinvestment of income in national economy); content (related to property relations, ecology, corruption). It is proposed to apply the cross-structuring criteria such as: content-level; content-phase; local and economic; local-ecological, which will allow to detail the causes and consequences of conflicts in national economy. In the frame of this research paper in order to ensure the structural and component consistency of national oil industry the system of distributive lag equations is built, that allowed to determine the mutual influence patterns of the determinants of national economy development: the intensity of oil production, the level of innovation of national economy, employment rate in oil industry, oil prices, fixed assets value of oil industry, volumes of oil consumption, the morbidity rate of the population in the oil and gas producing regions in the short and medium term. The results estimation for the one- and three-year lag showed that the greatest effect was observed with an increase in employment in the industry; an increase in oil production leads to an increase in the level of innovation; Significant decrease in the morbidity of the population of the oil producing regions in three years - by 0,67 points and a year later - by 0,2 points is due to anthropogenic load of growth of production volumes, increase of the level of innovation of the industry and increase of the employment level. For low- and lower-middle-income countries, a 10% increase in oil production leads to a 0,2% increase in GDP. The small economic benefits to this configuration of countries are due to the lack of systematic modernization of the industry and the need to change the system of state regulation of exploration and use of oil fields, the transition from extensive to intensive path of development of oil production complex for the production of high value-added products. The substantiation of the influence of the institutional environment on the functioning of the oil industry of the national economy has shown that the increase in rents for oil by 1 point of standard deviation increases the level of corruption by 0,54 points. An increase in the level of corruption is caused by an increase in the level of shadowing of the oil industry and occurs when the quality of democratic institutions is below the threshold level. This creates the basis for the development of effective state institutions, which will promote the development of oil production and will reduce the country's energy dependency and strengthen the stability of the national economy.
