Study On Development Strategy For Jilin Oilfield Company

As the most important energy in addition to coal,petroleum and natural gas energy has made outstanding contributions to the sustained and rapid development of Chinese economy since the reform and opening up policy,and is also an important cornerstone of the sustained and healthy development of the national economy for a long time.Jilin Oilfield Company,a large state-owned holding enterprise of the China National Petroleum Corporation,has produced nearly 170 million tons of crude oil and 15 billion square meters of natural gas since its establishment in 1959.It has made important contributions to the national energy security and the promotion of local economic development.Due to the long-time exploitation,the problems of poor quality of resources,and the diachronic heavy burden are more obvious day by day,and coupled with the rigid system and mechanism commonly existing in state-owned enterprises in Northeast China,the total cost of Jilin Oil Field Company is rising year by year.At the same time,international crude oil prices in the second half of 2014,appeared a precipitous decline,and has been continuing in low volatility after that.The rigid rise of internal cost and the continuing of low external oil and gas price caused Jilin Oilfield Company to make a loss since 2015 and continue to this day.In order to solve the plight of Jilin Oil Field Company,China National Petroleum Corporation(CNPC)has been experimenting with the reform of operating autonomy in Jilin Oilfield Company since 2014.In addition,on November 2016,the State Council issued “On deepening the implementation of the new round of Northeast Revitalization Strategy and accelerating the economic stabilization of the three northeastern provinces to a number of important measures” to launch a new round ofnortheast revitalization strategy.Under this special background,it is of great practical significance to study the development strategy of Jilin Oilfield Company in order to solve its own long-term development and boost the regional economy.First of all,as strategic analysis stage,we use the PEST model to analyze the external macro environment,such as politics,economy,social culture,science and technology level,which the Jilin Oilfield Company is facing at present.Then the theory of industry life cycle and Porter's five-force model are used to analyze the industrial environment,and then the internal environments of Jilin Oilfield company are analyzed from the aspects of enterprise resources and ability.On the basis of these analyses,the internal advantages and disadvantages,external opportunities and threats of Jilin Oilfield Company are summarized according to the theory of SWOT analysis,and the torsional type(WO)is put forward for our business strategy.Secondly,as strategic selective stage,combining with the actual situation of Jilin Oilfield Company,the intensive development strategy of market penetration is adopted for the choice of oil and gas business.The intensive development strategy combining market penetration and market development is adopted for oil and gas auxiliary service business,and corresponding development strategy objectives are formulated.On the strategic realization approach,internal development and strategic alliance are used.On the basic competitive strategy,according to the characteristics of oil and gas field enterprises,the cost leading strategy is chosen.Finally,for the strategy implementation stage,sustained increase in storage,stable production efficiency creation,cost decreasing and benefit increasing and other suggestions are put forward in the implementation of the strategy;In terms of safeguard measures,suggestions are put forward from the aspects of system and mechanism reform,scientific and technological innovation,compensation and assessment,human resources,and so on.Based on the analysis of the external macro environment,industrial environmentand internal management environment of Jilin Oilfield Company,the overall strategy,the Strategic realization approach and the basic competitive strategy,which accord with the actual situation of Jilin Oilfield Company,are studied and put forward.And on this basis,relevant recommendations for the follow-up implementation of the strategy and security measures are put forward,which provide the reference for Jilin Oilfield Company high-quality sustainable development and provide ideas for further deepening the reform of state-owned enterprises in Northeast China.