Competition Strategy Research On SLOF Drilling

After the economic crisis, world economy recovers tortuously. As for the oil and gas industry, it increases restoratively, with rapid rebounding of demand, as well as overall rising of supply with high prices. Meanwhile, oil and gas industry in China continues to maintain a rapid development. West part of China replaces the east part to be the main production area, while offshore production supplements production on land, thus oil production pattern basically forms, providing a broad market for the development of technology and service business of oil and gas engineering. Petroleum exploration drilling is a process of verifying geologic structure and finding and proving petroleum resources. Based on the basic theory of rock-breaking mechanics, exploration drilling operates with special tool, meeting the requirements of geologic design. It has long been the most important part of petroleum exploration and development process, among all the technology and service businesses.Most of the petroleum engineering technology and service companies in China operated and developed in the integrated petroleum and petrochemical corporations. They have run independently for less than 10 years. Thus compared with other international famous petroleum engineering technology and service companies, they bear a strong characteristic of the planned economy in its management, and pay little attention to the research of strategic management. In 1999, after the going public of core business in SINOPEC, technology and service companies in Shengli Oilfield separate from the main oil production business, directly facing the market competition, which earn them surplus in stead of deficit. At present, SLOF Drilling is being faced with more intense competition, as international tycoon companies monopolize this industry while there are too many domestic drilling teams, with increasing difficulties of prospection and huge technical barriers. Therefore, for the improvement of competence and maintaining a sustainable development of the SLOF Drilling, it is of great importance theoretically and practically to study the competitive strategy of its business segments. In the theoretical part, this thesis analyzes the present condition and development of theories related to competitive strategy home and broad. In the discussion of the exterior atmosphere of SLOF Drilling, this thesis uses PEST Model to analyze the international and domestic condition, as well as Porte's Five-force Model to study business environment. By recognizing the critical element for success and appraising its exterior atmosphere, I find the challenge and chances that are facing SLOF Drilling. While in the discussion of the interior atmosphere of SLOF Exploration Drilling, this thesis analyzes its human resource, equipment resource, technology resource, and market resource. By recognizing the core competence and appraising the critical element of its interior atmosphere, I find the advantages and disadvantages of SLOF Drilling. In the strategy choosing part, this thesis uses the analysis matrix of SWOT and evaluation matrix of quantified strategy and analyzes comprehensively the chances, challenges, advantages, and disadvantages of SLOF Drilling. I came to the conclusion of implementing differential competitive strategy and draw up it in details. The strategy choosing part of this thesis proposes six guarantee measures, namely Increasing the investment of equipment, expanding market actively, running better petroleum engineering technology and service, increasingly strengthening management, making stronger infrastructure for security and environmental protection, and building an iron army of petroleum engineering by emphasizing the construction of our human resources.