Cost Management Research In The N Production Plant Of A Oilfield Co. LTD

Daqing No.N Oil Factory is a member of A Oil Field Pty Ltd, and it is one of the OilFactory of CNPC, majoring in extraction of oil and nature gas. Recently, with the deepenreform of shareholding of petroleum enterprise as well as the oil price connected with theinternational oil price, petroleum enterprise’s survival and development and the internationaleconomic development have been combined together. Whereas compared with theinternational large enterprises, there are some disadvantages in terms of volume of resourceand labour costs. Daqing No.N Oil Factory comes across many issues in this trend anddevelopment, such as the increasing difficulty of extracting, the rising of water level of strataand the severe aging problem of equipment, these has constrained the development of thisenterprise. Therefore, how to efficiently improve the level of management of Daqing No.NOil Factory, minimizing the costs and increase the gross profit has become a inevitableproblem. It is getting harder to minimizing the costs, how to run the petroleum enterpriseusing lower costs and continuing exploring a lower-cost management mode are the mainproblems discussing in this paper.Besides the related research results in this paper, by field researching of petroleumenterprises, we summarize the current situation of cost management and outstanding issues,so as to lucubrate the sustainable development of petroleum enterprise, and propose thatminimizing costs and maximizing profits are the inevitable choice. Moreover, throughexploring the ideas and approaches on how to achieve ‘control investment, minimize costs,maximize profits, facilitate development’ in the process of oil extracting in the petroleumenterprise, we come up with practical advice and hope this would enhance the developmentand increase of capability to some extent.Firstly, this paper analyse the current situations of cost manage of national andinternational petrol enterprises, although there are existing means on controlling costmanagement. However, compared with international petroleum enterprises, the problems doexist. Secondly, this paper deeply explore the current situation of cost management andexiting problems in Daqing No.N Oil Factory, from internal structure, current situation ofbusiness operations and cost cycle. Besides, this paper deeply researches the principles andcurrent situation and rises advice on these problems. Thirdly, through the research of current cost management, from complete the expenditure examination and approval system,establish cost group management accounting model as well as build up bench markmanagement system, we put forward measures on self cost management, from the structureof cost of enterprise, and we put forward six potential ideas.