Research Of SL Petroleum Engineering Company's Performance Evaluation Based On Network DEA Methodology

With oil prices falling,large il companies are facing challenges of the growth in capital expenditure and production cost,the reduction of return on investment and the higher cost on operation.Therefore,these large oil companies took a more prudent and steady development strategy.The scale of investment is controlled strictly,which brought new challenges for petroleum engineering technical service companies relying on oil exploration and development investment for a living.It adds difficulty to market development and strength the market competition.SL petroleum engineering company was founded in 2013.It is an important part of Sinopec Group Company after implementing specialized reconstruction.However,after restructuring,SL petroleum engineering company faced the insufficient innovation ability,rigid management mechanism,weak competition consciousness and other operation problems,which brought a new challenge to performance management.At the same time,the complexity of the company's business and the dispersity of oil and gas cooperation blocks further increased the difficulty of performance management.Thus,based on the company's business characteristics,it is important to study the performance of each unit,every market and the overall performance.This article mainly launches the research from the following three aspects: First,this paper introduced the research background and significance from the theoretical and practical perspective,and then defined the research content and methods.Meanwhile,domestic and foreign related research content status and related theory were described.Second,through the analysis of SL petroleum engineering company's operating procedures and performance management status,the production system were separated into 4 subsystem including well drilling,well logging,mud logging and downhole subsystem.With 3 input indicators and 2 output indicators of each subsystem,the index system of performance management was established.Combing the characteristics of network DEA and the practical situation of SL petroleum engineering company,the evaluation process system was designed and the dynamic parallel DEA model was established.Based on results analysis,in well drilling,well logging and mud logging subsystem,the average efficiency of SL oilfield market is the highest,overseas market comes second,and the domestic external market is the lowest.While in downhole subsystem,the average efficiency of domestic external market is the highest,but the SL oilfiel market is the lowest.From the whole efficiency of every markt in 2011-2014,compared with the last two years,the whole efficiency of every market has decreased to varying degrees in 2013.However,the whole efficiency improved a lot in 2014.From the result of dynamic efficncy,except Mexico market,the efficiency value of other markets are greater than 0,which means there are room for improvement,especially the Northwest market.Finally,The projection analysis finds that the situtation of output shortage is less than the input redundancy,which means the company mainly depend on high input to acquire high output to some extent.There is the trend of extensive development.Therefore,some corresponding measures were put foreward according to different markets.SL petroleum engineeing company should increase investment on high-end equipment and high-tech,reform operation mechanism,improve market competitiveness,expand external markets and increase market to transform the development pattern from extensive one to intensive one.