Research On Comprehensive Budget Management In Oil And Gas Service Group To Strengthen Innternal Control On Overseas Subsidiary

Petroleum technology service industry constitutes an integral part of the upstream fields of petroleum industry.More and more petroleum technology service enterprises get an access to the international market and start their transnational operations.Their control on overseas subsidies is the extremely weak,so that they fail to notice,recognize,expect or address a lot of risks to some extent.After nearly three years of international crude oil price slumps and the expected sluggish market for a long time,those conflicts and problems hidden in the favorable industry situation in the last few years are fully exposed at this very moment.How to solve the weak internal control of oil&gas service groups over their overseas subsidiaries?How to strengthen the control over overseas subsidiaries and attain the overall goal of group in the next operations?Based on the working experience and theoretical studies,the author concludes that the best way to solving such problems will be combining the comprehensive budget management and internal control.The internal control system and the overall budget management theory are the preferred approaches for modern business management.Further specific and refined research needs to be done to analyze whether combining and strengthening both systems in the control and management of transnational groups over their subsidiaries will achieve the intended effect.Especially in the traditional fields of petroleum industry with backward management concept,transnational business is often carried out by "impulsive","policy-based" investment strategy without long-term plan,the internal control is only a formality,this thesis will focus on how to combine both systems to strengthen the management of overseas project and allow for the collaborative growth of group.With respect to the control of petroleum technology service enterprises over their overseas subsidiaries,this thesis discusses the current situation and problems concerning internal control,and the development status of internal budget system in oil&gas service enterprises through literature and theoretical study,and analyze the role and effect of combining both systems in overseas subsidiaries.An empirical analysis based on the author’s own working experience will be presented through the process and result of surveying and researching Group S overseas subsidiary in Country K,which will provide a basis and reference for more oil&gas service enterprises in their transnational management.