Cost-benefit Analysis, Safety In Production Of The Oil Drilling Industry

Along with the development of the economy and information technology, more and more accidents have been exposed. On the other hand, with the improvement of living standard, people and enterprises also have a new understanding about the value of life, which makes people have a leapfrog development about attention degree. However, security is always directly related to a country's economic level, which is in direct proportion to human beings'security level. The security level of developed countries is higher than that of the undeveloped countries,which also proves that.Since the gas blowout accident happened in Kai Xian County in 2003,the oil drilling industry of our country began to pay much attention to security than ever before, because the great loss of social image, economy and property. The subordinate departments of the petroleum company increase the fund investment on security in the oil drilling industry and set up Safety-Quality Control and Environment Protection Division which is specialized in charge of safety management. And the departments establish a QHSE management system to guide the safety culture construction in foundation team, hoping that by increasing fund and system investment to decrease the rate of security accidents. Nevertheless, security is an endless pursuit, even if we increase the investment strength, establish and improve the management system, there are still some accidents to happen. However, the annual revenue of a company is limited. But how much on earth of the safety investment is reasonable and what security investment is scientific which just puzzles many managers and departments.By the definitions and researches on the oil drilling company's values, safety investments, safety outputs and safety benefits, this paper points out the inner connections and build mathematical models between investment and output. According to the mathematical model, we can get the relationship between the investment and output. From the point of view of mathematics, during the security investment, if the safety output is more than safety investment, we think we can increasing the investment; when the investment reach a certain level and the safety investment equals the safety output, in other words, the investment can't produce benefits for the company any more, at that time, we regard that point as the optimal point for investment. If the safety output is less than the safety investment, in other words, the benefit of safety investment is negative and the accident rate is less than the rate which our country and industry sets, in that way, we can think that increasing the safety investment doesn't have the economical benefits.Firstly, this paper gives a necessary and scientific analysis on the safety investment by analyzing the factors which influence the company's safety and some basic reasons, which makes our safety investment reasonable to increase the efficiency of using the safety fund and find out the balance on the curve linear relationship between the safety investment and the safety output. Next, The either find out the relationship between them. By comparing with them, we can know the investment whether it possesses the economical benefits, which provides some reasons for the decision maker to plan the safety investment. In the paper, the statistics on the accident rate in the oil industry can't provide the specific data because of the time and the difficulties aboutsearching information. What' more, we can't calculate and figure out the fund loss of each percentage which the accident rate brings directly and directly. Therefore, we should continue doing this job for the company to make use of this achievement in the company.