Study On Oil Production Enterprises Cost Driver And Its Application

Currently, most of onshore fields in our country have entered into the third stage of development with a high water-cut and a low production, so a strategy of low cost development is what an oil company needs essentially in order to survive further under the condition that some technology breakthroughs have not acquired worldwide. In this paper, taking the first oil recovery plant of Qinghai Oilfield Company as an example, it is described how a cost management model is formulated to face the new market competition.Dynamic factors in cost are driving factors in cost. By analyzing the factors we can get a mastery of cost constituents, cost changing trend and cost-influenced factors, and therefore make corresponding measures to lower the cost in oil production.On the study of dynamic factors in cost, Scholars domestic and abroad are prone to quantitative research referred to as the classification, analysis and application of dynamic factors in cost, while little work is done on its qualitative research. The current qualitative research is mainly to search for reasonable driving factors based on models. For instance, a cost model is used to have a more reasonable cost distribution. And in the course of my inquiring relative data in literature, I noticed that there is a lack of mathematic models on quantity research, which determine how dynamic factors influence the cost.Based on related achievement in literature and taking the the first oil recovery plant of Qinghai Oilfield Company as an example, I have analyzed the driving factors in cost of production, injection and oil treatment, and the last five years’ data concerned with development and finance, and have established Cost driver model for oil production enterprise. The model uses linear regression method,set up relevant sub model the cost of the project, and then summarize, eventually formed the cost driver model three business system. Finally, it introduces the application of cost driver in the crude oil production enterprise cost budget. allocation, benchmarking management and reservoir accounting analysis, the cost driver theory to practice to control the production cost of crude oil, provides a combination of theory and practice of contract for the cost management of oil production enterprise.The achievement of this paper is, by using the theory of cost driver analysis, finding out the main business process of crude oil production enterprises reasonable cost drivers, and using the method of linear regression, mathematical model. The cost driver theory and the actual situation of oil production enterprises are fully binding, as to cause analysis is the core of the cost management system provides the direction of construction of oil production enterprises, has laid the foundation for the real practice of low cost strategic crude oil production enterprises; help to raise the level of cost management of oil production enterprises, enhance the core competitiveness of enterprises.The empirical data from the Qaidam Basin in the Qinghai Oilfield, because of the difference of the different geological conditions of oil field, the cost data and conclusions has certain limitations. At the same time, because of limited data selection, short of more in-depth analysis, detailed deployment, all is the shortcomings.