Research On The Application Of Marginal Contribution Analysis Method In CQCZ Company

The method of marginal contribution analysis has a wide range application in various industries in domestic and overseas.But it is seldom used in petroleum drilling engineering industry and the researches on the marginal contribution analysis in this industry are not so rich,due to the business of which is very complex with large range in both time period and areas.The cost structure and formation reason of it is various.And the other reason is that the domestic market of petroleum drilling engineering has not been opened entirely.The drilling works are allocated by the owner,e.g.the oil-gas field enterprises.The drilling company has no other choice to select its markets,so there is no necessity for it to take marginal contribution analysis to improve its operating results.But the continued downturn of the recent oil price over the world has made it a necessity to take this kind of analysis for the enterprise economic benefits.The key to analysis of marginal contribution is to determine variable costs and fixed costs of the enterprise.The costs of petroleum drilling company are correlated with various parameters,such as the number of drilling footage,well sites,mileage,or earthwork.How to determine the cost behavior of petroleum drilling company for contribution margin analysis is a complex and arduous task.Starting from CQCZ company the cost of state division,the marginal contribution of nearly a few years CQCZ company different well type and block as the research object.Analysis of CQCZ company specific cost division method,cost sharing and imputation methods,ranked by well,block the marginal contribution of classification,analysis the results of the evaluation,and the evaluation results are applied to work contract,bidding management,adjust the rig deployment,financial forecasting analysis and management practice,in order to improve the economic efficiency of enterprises and financial efficiency analysis.Finally,the factors restricting the application of marginal contribution analysis method in petroleum drilling enterprises are discussed.The above research methods can be applied in oil drilling enterprises,and the results have some reference value.