The Study On Project Cost Management In Petroleum Engineering And Technology Service Of XX Center

As the result of the recent development of domestic economic and the steady declines of oil price in the international market, recession happen in both global and domestic markets, which indeed is causing the rapid growth of market competition in the petroleum engineering and technical service industry, with the byproduct of cost pressure over industry projects. However, the current situation of cost management in the industry is rather concerning, due to the vulgar management style. The cost management in the majority of companies in the industry tends to be superficial and mostly end up with formalism. When compare to the project-oriented accounting and management methods in modern enterprise management system, most companies in petroleum industry still replies on cost-factor-oriented accounting and management methods, which not only fails to represent the actual cost of single project, but also prevents the decision maker in the company from precise business operation data. The problem described above, in return, distracts the company from enhancing its core competency. As demonstrated above, and since petroleum engineering and technical service is the main source of financial income of G center, it is clear that superficial rather than precise project management method do more harm than benefit to the future development of the entire company. Therefore, this paper tries to analyze the problematic project cost management method in the company and evaluate possible management solutions for the exact problem, starting with the cost management analysis aim at petroleum technical service projects. An example, based on the experimental project on X112 oil well, is given in order to demonstrate the proposed modern project cost management solution in this paper, which hopefully could be referenced as a constructive solution in the future.