Research On Oil Drilling Cost Elaboration Management

Petroleum drilling engineering is a fly-over crossing systems engineering which involves multiple types of work and procedures, and continuous operation. It is also an underground engineering with high invisibility, high profit, high risk and high technical level. Thus the work of drilling cost management has some particularity, namely, there are various cost items and the unit cost is also very high, which makes drilling cost management become more and more difficult.With the deep-layer promotion of China's petroleum industry reshuffle, China's petroleum corporations and technical service companies are implementing the strategy of"going out"positively. In circumstance of the turbulent market competitions, the Chinese drilling enterprises are faced with unprecedented development opportunities and serious challenges. In order to win in the competition, implementing low cost strategy to improve the international competitiveness based on quickening reform, reshuffle and transformation is needed. For the sake of striving and developing in the fierce competition and obtaining maximum profits with minimum cost, it is important for China's oil field drilling companies to know their position, and take measures to reinforce drilling cost management and improve the management level. And it is essential to carry out drilling cost elaboration management and explore new methods to cut down the drilling cost.In this paper, the problems of drilling cost management existing in oil field drilling enterprises are analyzed. With the reference of foreign petroleum drilling companies'experience and the use of cost elaboration management theory, considering the characteristics of China's drilling companies, an elaboration management system with perfect organizations, management regimes, appropriate control measures, which highlights budget management, cost control and cost evaluation is constructed. The proposed system may provide some support for drilling enterprises to reinforce drilling cost management, improve economic benefits, strengthen market competition ability, speed up the exploration of petroleum resources and achieve the goal of low cost of China's oil field.