Research On Cost Control Of Oil And Gas Exploration Projects

As the most widely used mineral resources in the world,oil and gas resources play an irreplaceable role in economic development.Especially in recent years,petroleum resources provide energy security for the growth of our national economy and control the lifeline of the national economy.With the increasing demand for petroleum resources,the country began to exploit oil on a large scale,which led to a sharp decrease in oil reserves.Therefore,the exploitation area had to be transferred to more remote and complex geological structure,which increased the cost of exploration and exploitation invisibly.Correspondingly,domestic oil and gas field enterprises have to face more fierce market competition environment because of the increasing difficulty in operation.In this competitive environment,oil and gas field enterprises can effectively reduce costs and gain a favorable position in the competition only by making full preparations for oil and gas exploitation and reducing engineering errors.Therefore,it is of great significance to study how to strengthen the cost control of oil and gas exploration projects in the competitive environment and put forward scientific and effective countermeasures for speeding up the construction of cost control system and saving the cost of oil exploration projects.This paper is based on the theory related to management and oil and gas resources,taking K company as an example,to explore how to effectively control the cost of oil and gas exploration.The content consists of three parts:The first part is to analyze the current situation of the overall cost control in China’s oil and gas exploration industry.Firstly,according to the characteristics of oil and gas exploration project itself,the cost of oil and gas exploration project is divided into five items:pre-drilling engineering cost,drilling engineering cost,logging cost,cementing engineering cost and oil testing engineering cost.Among these five costs,drilling engineering is the most difficult and expensive.Then,according to the current situation of oil and gas resource cost control,this paper puts forward relevant theories,including activity-based cost theory,strategic cost theory,target cost theory and responsibility cost theory,and introduces the advantages and disadvantages of these theories in detail,and makes a comparison.Finally,the technology used in controlling the cost of oil and gas exploration is analyzed.This paper mainly introduces earned value analysis method in detail,points out the shortcomings of earned value method and puts forward some suggestions for modification.The second part compares the development status of cost control mechanism of oil and gas exploration in China with that of foreign countries,points out the shortcomings of cost control in China,and focuses on the analysis of the shortcomings of K Company.The third part is the macro-analysis of cost control.In view of the shortcomings of K company’s current cost control,the method of cost control is worked out.The main problems existing in the cost control of K company’s oil and gas exploration project are analyzed by using the relevant principles of earned value method,and then effective control strategies are put forward to control K company.Cost basis.