Study On Funds Management Of Petroleum Engineering Enterprises Under Market Integration

Oil is a major strategic resource for a country. Its sufficient output and smooth supplyplay a decisive role in sound and fast development of China’s national economy in transition.With the rapid development of the economy, both the pressure of domestic oil supply andChina’s dependence on foreign oil are growing. As the main force and the vanguard of China’splan that keep on oil production, most petroleum engineering enterprises increase theiroverseas investment actively and their offshore share grow rapidly, which increased thedegree of market integration. The pressure of international competition and market integrationproposed new requirements for the funds management of petroleum engineering enterprises.Therefore, this paper was based on the angle of market integration, and study on the issues offunds management of petroleum engineering enterprises under market integration.This paper took the literature review, site investigation and qualitative and quantitativeanalysis as the research methods, and applied the theory of Agent, the theory of Control andthe theory of Corporate Governance. After analyzing the status of the funds management ofChina’s petroleum engineering enterprises, we concluded some problems of their fundsmanagement, such as, insufficient capital operation capability, the ineffective implementationof financial planning and internal control, insufficient capability of inventory management,the weakness of exchange rate risk control, and the shortage of customer credit analysis.In order to solve the above problems of funds management of petroleum engineeringenterprise，after consulting some literatures and turned to some large enterprises all over theworld for successful experience of funds management, this paper designed a plan to improvethe funds management of petroleum engineering enterprise. The plan set maximization of thefunds as the core of the funds management, and it would enhance the ability of capitalplanning, the efficiency of the use of funds, the response capabilities, and will prevent thefund’s risk and keep the balance of fund positions. This plan obeyed the following principles,like systematic, collaborative, a combination of qualitative and quantitative and operability,and it consisted of three parts, such as, financial management system, specific improvementsand safeguard measures. Financial management system included the system of funds planningmanagement, inventory management and internal control. The specific improvements included strengthening local and foreign cash pool, optimizing the stock of foreign currencyfunds, maintenance of fund transfer channel in sensitive areas, strengthening customer creditmanagement and the exchange rate risk management. At last, this paper come up with somesafeguard measures to maintain the funds management for petroleum engineering enterprises.