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Study on Cost Control of Oilfield Block on the Basic of Reservoir Life Cycle

Author: JiangRui
Tutor: SunShuPing
School: China University of Petroleum
Course: Accounting
Keywords: reservoir life cycle reservoir management cost control
CLC: F426.22
Type: Master's thesis
Year: 2008
Downloads: 134
Quote: 1
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Abstract


Cost management is the basis of modern enterprise management. And cost control is the key to cost management. In a market economy, cost plays a vital role on the market competitiveness of enterprises. Especially, the oilfield enterprises, which are large resource production enterprises, must strengthen their cost control. Therefore, if a company wants to success in the fierce competition in the international and domestic markets, it should change the concepts and strengthen cost management. Relying on science and technology, the company should control cost strictly to achieve the lowest cost. The oilfield enterprises are targeted for the exploitation of natural resources. They have unique production features. The cost of oil and natural gas should be the cost of all-aspect, including all the expenditures. We cannot control the sale of crude oil prices. In order to have lower investment and cost, we should set up economic concepts. Therefore, the various stages of reservoir life cycle should be linked to. The enterprises should combine cost control to the features of the various stages. So the cost of entire reservoir life cycle must be lowest. Therefore, the cost control of oilfield block, which is based on the reservoir life cycle, has a very important practical significance.According to advanced experience in cost control and characteristics of oilfield enterprises, this paper analyses the exiting problems of cost control in oilfield enterprises. This paper thinks oilfield enterprises should change the traditional concepts and control cost effectively from a new perspective. This paper tries to provide a new way of thinking and methods in cost control. In this paper, the entire reservoir life cycle is divided into four stages. The paper proposes the corresponding cost control measures of each stage. Therefore, oilfield enterprises can enhance the competitiveness and reduce the cost.

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