Problems And Countermeasures Of The Comprehensive Budget Management In The Yellow River Drilling Company

As a key oilfield enterprise, Yellow River Drilling Company provides services for theexploration and development of the oil field and increase of oil storage and production on onehand and faces such challenges as increasing rising costs, declining profitability and profitspace on the other hand. Thus, it is more difficult for the Company to successfully achieve itsannual operation target. Thus, a comprehensive budget management system has beenestablished to further enhance the internal control and reflect the fine management demands.During the process, the system has played an obvious role in terms of reducing costs andincreasing production, accelerating the effective integration and optimization of theCompany’s resources, further clearing the Company’s strategy management and internalcontrol targets and improving the Company’s management level to a certain degree. However,challenges come at the same time. The Company is now facing some problems, i.e. how toeffectively and comprehensively implement the budget management concept and how toorganically integrate and combine various unit’s budget measures. To solve those problems,the Company must create good budget management atmosphere, and departments and units atall levels shall understand the connotations of the comprehensive budget management, whilethe Company shall continuously perfect the budget system suitable for self-developmentbased on actual conditions, so as to make the comprehensive budget management play a morepositive role in the course of the Company’s development.This paper emphasizes the disadvantages and shortcomings of the implementation of thecurrent comprehensive budget and analyzes the reasons. Finally, the paper proposesimprovement measures from different aspects. It is expected that this paper can provide areference to the improvement of the Company’s comprehensive budget management and thatvarious approaches proposed by the oilfield to enhance the comprehensive budgetmanagement can be utilized to provide the in-depth implementation of comprehensive budgetmanagement with basic guarantee.