Cnpc Liaohe Branch Hing Mining Plant Oil And Gas Exploration And Development Of Strategic Research

Petroleum has always been the center of attention of both country and society. It is the strategic resource that is of paramount importance to the development of the national economy. The demand for petroleum has increased year by year with the rapid and continuous development of national economy since China opened the door to the outside world. The supply of petroleum has fallen short and there is a trend that it would continue in the future. Liaohe oilfield is the third largest oilfield in China with an annual output of 13.5 million tons. According to the strategic requirements of "adjust and stabilize the oil production in the east while develop the west" put forward by PetroChina, Liaohe oilfield which lies in the east shall keep stable production for a long period of time. However, there are huge difficulties for keeping the production stable. The reasons are that the heavy oil accounts for 60% of the total production, there is a lack of backup resources, high production cost and rapid decline of production. Under the pressure of stable production and high cost, it is necessary for Liaohe to adjust the production structure and make more effort to increase light oil production. Xinglongtai production plant is a plant that light oil is all it produces. So that there is no doubt that Xinglongtai production plant shares more and more oil exploration and development tasks.How shall we face the challenge regarding the significant changes happened in and out of the enterprise? We must change our mindset of "waiting, relying and asking for help" that was prevailed under the planned economy. We must develop suitable strategies considering the environment in and out of the enterprise and we must avoid activities that only seeks short-term benefit and neglect long-term goal.This research paper has investigated abundant data concerning exploration and development of PetroChina, Liaohe oilfield and Xinglongtai oil production plant. It conducted systematic analysis on the current situation, future trend of exploration and development and the supply-demand relationship in Chinese petroleum market using strategic management theory, oilfield exploration and development theory. It also conducted systematic analysis on the existing problems and potentials for oil exploration and development and forecasted the future trend and its impact to Xinglongtai production plant. Then detailed investigation is done to analyze thecurrent status, problems and potentials of Xinglongtai production plant itself and thus decided the exploration and development strategies fit for ten years time. The strategies are to strengthen exploration to find first grade reserves, to conduct comprehensive reservoir management centered on water injection and to exploit the oilfield rationally, and to attach importance to the exploration and development of natural gas with scientific management skills and to lower the production cost to ensure the sustainable development of the Xinglongtai oil production plant. The aim is to increase the annual oil production from 850 thousand to 1 million tons in ten years time while the annual oil production of Liaohe oilfield faces declining. The ultimate goal is to form a new prospect of increasing production when necessary and keeping stable production when needed. Thus that Xinglongtai production plant can meet the requirements of the petroleum market and also that of Liaohe oilfield subcompany.