The Application Of Target Cost Management In Drilling For X Block Horizontal Gas Well

At present,oil drilling industry in China is undergoing profound changes.A series of national policies promote the full opening of drilling services market,leading to the increasingly fierce competition.Only by adapting to this trend,timely adjusting strategic deployment,taking economic benefits as the starting point,planning cost well,and implementing block target cost control can enterprises optimize production deployment and achieving impetus for sustainable development.This thesis concentrates on the application of target cost management in drilling of horizontal gas well for X Block.Firstly,the status quo of cost management of horizontal gas well for X Block is investigated.Investigation shows that there exists such problems as difficulty in cost control,complicated external factors,and lots of uncertainties.analysis of the problems reveals that target cost management is the proper alternative to existing cost control approach to improve cost control of horizontal gas well for X Block.Secondly,the feasibility of applying target cost management in X Block is analyzed primarily in terms of organizational structure and technological aspects,and the foundation for application of target cost management is clarified.Thirdly,the target cost model is constructed based on the assumptions of setting target cost,cost behavior,and cost control requirements in X Block,thus the cost performance standard is established.Finally,from the perspective of target cost variances,the principles and target-cost-variance-based approach of cost control are articulated and proposed in drilling of horizontal gas well for X Block.The cost control approach is simulated using the predicted cost figures,which suggests that target cost management is effective in controlling drilling cost of horizontal gas well in X Block.This study is not the end point because of the rapidly changing market environment.With the continuing changes of the internal and external environment,the target cost pricing model may also be replaced by other models.However,considering the current situation,Block target cost management is the most suitable one for CQ company.