Dongsheng Group Oil And Gas Production Cost Control System

Petroleum - industry is important as a post in domestic economy. And cost-management in a corporation about oil-production is one of the key measures to enhance its economic effects. Dongsheng Group Company is first Co. , LTD at Chinese land in oil-production industry, which is called "oil-company" . Its junior reserves are about 95.3 per cent of the total reserves. Higher cost of oil-production is resulted from its elementary reserves, and so that economic effects of the corporation is abased. It is the important task to summarize experiences of Dongsheng Group about cost-management and make a cost-control system that fit to its management facts.In the paper, we try to design a oil-production cost-control system for Dongsheng Group, by summarizing cost-management experiences of China and other countries, meanwhile compared with the experiences of Dongsheng Group, so that make the system with a characteristic which is scientific, advanced, applicable and operative. In the paper, we searched into some important hands of the system in order to provide a better foundation to future cost-managements.There are five passages in the paper. In first passages, we introduced basic circumstance of researched company and characteristics of a oil-production company in its cost-formation and cost-management. In second passage, we researched and summarized the work of the most oil-production companies about cost-management in the world, and it is an important reference to build a cost-control system about oil-production for Dongsheng Company. In third passage, the work of Dongsheng Company about cost-control is researched and summarized. Next, the problem of Dongsheng Company about cost-control is found out in fourth passage. Finally, we described the framework of the cost-control system, and some critical things about the system are discussed in this passage.There is some innovation in the paper. It includes: 1. We set up a concept and a series of basic principle about cost-control system of an oil-production company. 2. A framework of the cost-control system for an oil-production company has been constructed. 3. We built an examination-index system about oilfield-management scientifically, for offering a new view and a better way to examine a manager of an oil-production company.Comparative method, historical method, researched method in the field, and analytical method combined quality with quantity are basic means in the paper.