Research On The Detailed Cost Management Of Oil Production

In market economy, the focus of enterprise management has shifted from production management to business management; cost management is the core of the business management. Chinese oil companies have attached great importance to its cost management and made remarkable achievements. But with oil field development difficulty increased year by year, coupled with the impact of the financial crisis, how to implement more effective cost management at a higher level to achieve a virtuous cycle of management mechanisms and to realize low-cost strategy target, has become the focus many people are concerned about.Through the analysis for cost management theory and management practice, the paper put forward the cost detailed management method innovatively of oil production. There were five aspects to analyze the realization cost detailed management of oil production respectively, which included fining the cost budget management, standardization the cost operating procedures, establishing monitoring mechanisms of the process management, building a costing system for single well, and cost assessment mechanisms. First, the paper carried out detailed studies for the preparation, implementation, adjustment, assessment work of cost budget, then standardization the cost operation of oil production, and implemented the dynamic monitoring system, process monitoring, financial monitoring, which were an effective meticulous control for the cost process management; then further refining the costing object to implement single well accounting; finally the paper conducted in-depth study for precise cost assessment management from detailing cost assessment goal, honoring cost assessment strictly, and the analysis the communication and the cost trouble settling mechanisms. Then this paper proposed four safeguards that included improving full cost detailed management thinking, enhancing the dynamic management, increasing executive power and strengthening technological innovation. At last, this paper carried the analysis for the detailed cost management practices of a work area. It had a strong academic innovation value and laid a solid foundation for effectively controlling the cost of the oil enterprises, changing extensive style management approach and enhancing international competitiveness of Chinese oil enterprises.