Research On Cost Control Of A Petroleum Engineering Downhole Operation Company Based On Activity-based Cost

The impact of the global epidemic has caused a huge impact on oil enterprises,leading to their business situation getting worse and worse.The profits of many oil enterprises are declining,and even some oil enterprises have suffered large losses.As Party B in petroleum enterprises,petroleum engineering downhole operation enterprises need to increase the odds of success in the increasingly fierce market environment through effective cost control.After 56 years of development since 1966,a petroleum engineering downhole operation company has become a professional company engaged in engineering technical services and process research and development such as oil and gas well testing,reservoir reconstruction,well completion and oil and gas testing,workover and coiled tubing operation.After studying the current situation of cost control in a petroleum engineering downhole operation company,it is found that there are three main problems in the company’s existing cost control system: pre prediction and in-process control,distortion of cost information caused by traditional cost method,and lack of effectiveness of post cost evaluation.These problems can be solved by introducing activity-based cost method for cost control.This paper comprehensively uses the cost control theory and activity-based costing theory to solve the current problems of cost control in a petroleum engineering downhole operation company.Firstly,it expounds the background of a petroleum engineering downhole operation company.Secondly,based on the analysis of the current situation of cost control in a petroleum engineering downhole operation company,the activity-based cost method is introduced into it,and a cost control system based on activity-based cost is designed.The system can also provide new ideas for other petroleum engineering downhole operation enterprises who want to change the traditional cost control mode.Then,this paper makes a specific application of the system in a petroleum engineering downhole operation company,selects XC project in2021 as a specific description,gives the final standard cost of a single well through the application of activity-based costing,analyzes the difference between the actual cost of a single well and the standard cost,and then adjusts the budget and optimizes the operation according to the difference analysis,Finally,the purpose of cost control and reducing the cost of single well is realized.Finally,this paper gives some suggestions on some safeguard measures for a petroleum engineering downhole operation company to use Activity-Based Costing for cost control.