Oil Drilling Cost Management

Petroleum drilling, called "the pioneer of petroleum industry", is one of the primary engineering during petroleum exploration and development. The characters of petroleum drilling engineering are: huge productive scale, high investment and risk, it needs spending huge manpower, material and property, so petroleum drilling cost management is emphasized more and more.With more than forty years' exploring in cost management of oil well drilling of DPAB (Daqing Petroleum Administration Bureau), it has established the drilling cost management system cored with "four single wells"(single well proposal, single well budget, single well checking and single well appraisal) and the management level improved gradually. After the rearrangement of domestic petroleum industry beginning with 1999 and China entering WTO, drilling companies take part in domestic and international drilling markets competition directly. But the serious problem is that the drilling cost is higher than average level, which caused by historical problems, equipment aging etc. Drilling company cannot compete with other companies if they don't take completely measures to reduce drilling cost. Learning from advanced cost management methods to decrease cost and improve efficiency is an effective way to improve cost management level.This article studies the material of No.l Drilling Company of DPAB, bases on the comprehensive analysis of the present situation about the cost management of petroleum drilling, then points out the key problem is that the direct cost is consumed highly now. Afterwards, using the idea of activity cost management and responsibility cost management comprehensively, sets up budget management model and budget analysis model which have been tested and verified in practice according to the tram of thought about business accounting serving budget, budget serving management, management serving efficiency. At last, brings up control measures of drilling cost management basing on using the international petroleum drilling activity cost management for reference and summarizing the experience of domestic petroleum drilling cost management.