Cost Control Mode For Petroleum Engineering Project

Oil and gas exploration manufacturing is one of the significant material productions in Chinese economy, which provides energy and basic materials for the running smoothly of the national economy. Currently, oil and natural gas in total account for about20%of energy consumption in China, the proportion of which is only after coal. It is estimated that the output value of oil and gas exploration industry accounts%of Chinese GDP, and this proportion is becoming larger in recent years. Although in the future, consumption of clean fossil fuels, may decline, it is fore-casted that before the middle of this century, oil and gas will continue to be the largest and most secure energy in the world, and their dominant position in global primary energy will not change. However, there are still problems such as cost control, cost management, basic data inaccurate information in projects of Chinese oil industry. Therefore, strengthening cost management measures, developing scientific and effective cost control mode of petroleum engineering, refining construction process related provisions and cost control system, and building effective motivation and constraint organs are needed, which can bring greater efficiency to oil companies.With flowing oil rates and declining exploitation, cost reduction to become an important philosophy in reservoir management. Petroleum engineering project cost supervision and regulation has begun to attract widespread attention, in which there is a degree of development and some achievements. Some domestic oil companies have done a lot of research, proposed a variety of predictive models and proven them in real projects. Also, they have combined cost control and contracting methods. This paper, based on the oil project cost control mode exploration, wants to bring positive meanings to the future research in cost control mode of petroleum engineering.This paper mainly uses a combination research method of normative research and case. In the normative research, research ideas and research object are established through the study of relevant literature and drilling companies data, collation and analysis. In the case analysis, according to the characteristics of the cost of petroleum engineering, scientific method for petroleum engineering cost control is provided by using the survey method, mathematical models, site surveys and experts consulting.This paper is partied into seven parts, the primary satisfaction of each chapter are the comings:Chapter1-Introduction. This proportion recommends the research prehistory, as well as the significance, the ideas and framework of the research. It also provides concise introduction to the study methods of the thesis.Chapter2-Research Review. It mainly introduces research in petroleum engineering project cost control at home and abroad.Chapter3-Theoretical Analysis. After the introduction of petroleum engineering, petroleum-engineering-project-related basic concepts, it combs the basic theories and methods in petroleum project cost management and provides theoretical foundation for the cost control mode of oil project.Chapter4,-Analysis of Problems and Matters in Petroleum Engineering Scheme Cost Administration. Through the study of cost control in Chinese petroleum engineering project, it suggests the main problems, including: underdeveloped cost control methods and discrimination in project management sector for cost control against cost control evaluation. Also, the matters of the hereinabove questions are described.Chapter5-Basic Assumptions in Petroleum Engineering Project Cost Control Mode. It tailor-makes the fundamental characteristics and the fundamental notions in petroleum engineering project cost management, analyzes the need and possibility of the building of petroleum engineering project cost management mode and introduced the fundamental notion of the control style.Chapter6-Case Study of Petroleum Engineering Project A. First, it states the reason for the selection of this project, then introduces the basic situation of Project A as well as the background of the implementation of certain cost control mode, finally describes application of cost control mode in Project A.Chapter7-Suggestions for The Improvements in Petroleum Engineering Project Cost Control Mode. It suggest several improvements, including:updating the concept in project cost management, further optimizing the information gathering process in budget management, establishing effective incentive and restraint mechanisms based on performance evaluation, emphasizing on ex ante cost plan, implementing cost control during the whole process of the project and so on.The primary contribution of the thesis is expected be the comings:This article is a fruit of the work tradition and academic exploration of the author, the analysis and conclusions of which are based on practical experience and theoretical analysis. It is hoped that this paper can help to establish and improve cost control mode for oil industry in the area of petroleum engineering project, as well as provides a foreshadowing for oil industry in petroleum engineering project cost control and cost control mode exploration.