The Study Of Strategic Cost Management For Internal Petroleum Exploitation Industry

With the advancement of its profound level of recombination and reform, the petroleum exploitation industry of our country is actively implementing the "Go-Out"strategy. Namely, based upon domestic resources, develop overseas resources, implement the strategic plan of international operation, go abroad actively, and launch transnational operation. The competition of the petroleum industry is finally the competition of the cost. In the competitive market, since entering into the WTO, the petroleum exploitation industry of our country has been facing the unprecedented opportunities for development, and both the severe challenges, thus, on the foundation of accelerating the reform and reorganization, it should effectively implement the low cost development strategy, and strive to improve the international competitiveness.The current target cost management mode for the petroleum exploitation industry of our country, which regards the "horizontal method" budget as its core, though it has tentatively suppressed the ascendant trend of the cost of the petroleum exploitation industry of our country, its management efficiency is relatively low, and the short-term behaviors are very serious, which have already seriously influenced the profit and long-term development ability of the petroleum exploitation industry of our country. So, based on the importance of petroleum for our country's economy, this paper proposes that petroleum exploitation industry of our country should carry out strategic cost management to build and obtain the competitive advantage. Beginning with an understanding of the theories and methods for strategic cost management, this paper uses the strategic environment analysis to carry on the overall strategy position of petroleum exploitation industry of our country.By summarizing and drawing experiences from the cost management practices of foreign oil companies, this paper innovatively structures the strategic cost management theoretic system for the petroleum exploitation industry of our country, and also makes corresponding study on application innovation based on Shengli Oilfield, which offer a set of brand-new thinking and method for perfecting the cost management system and promoting the international competitiveness of the petroleum exploitation industry of our country.