Thickened Oil Exploitation Cost-control Of Liaohe JM Oilfield Development Coporation

Over 50% of the proven recoverable oil reserve in our country is difficult to exploit, which is buried deeply with poor quality and high marginality. As a result, it is more difficult to increase the oil production and exploitation and raises the cost of winning while lowers the recovery efficiency. Thicken oil, as one kind of the difficult-to-exploit oil resource, is featured with high viscosity and high solidification, which results in the “three high and one low” in its economic exploration---high input, high risk and high cost but with low profits. Liaohe Oilfield is exploiting the majority of thicken oil in our country, and the Haiwaihe Oilfield and Xiaowa Oilfield attaching to the JM Oil Development Corporation are both the major production areas of Liaohe thicken oil. Since the thicken oil is limited in the block and the amount is decreasing rapidly, the overall profits would drop down at a rather high speed if there were no new capacity to take over. Therefore, in order to achieve the sustainable scale exploitation with high profits of the thicken oil, the company must lower cost as the strategy and be engaged in searching and implementing effective cost-control measures.Based on the investigation in the cost-control of the thicken oil carried out in JM and the statistic analysis on the production and management data from 2010 to now through the historic cost analysis method, this paper tries to find out the cost structure and cost behavior of the thicken oil production, and give assessment to the cost-control status of JM in order to point out the problems and the key aspects of it in JM. According to the practice and theory of the financial accounting cost control, optimization plan of cost-control of the thicken oil exploitation in JM is designed and six respective measures are proposed.The research in this paper can provide valuable references for the thicken oil exploitation of JM. The study results can be applied in solving the practical difficulties of cost-control in the development process and can help JM take effective cost-control measures to reach the cost target. What’s more, it can provide referential experience for those domestic oilfields with the same kind of oil resources and the same exploiting methods.