Analysis On The Causes Of Loss In Oil Field Service Industry In China And Countermeasures

The oilfield service industry refers to the productive service industry that uses oil and gas exploration and production as the main work content and oilfields as the main workplace.As an important part of China’s energy service industry,the main service content of the industry is to provide engineering and technical services for oil exploration and corresponding solutions,and to complete some of the business services related to technical services.In recent years,with the steady and steady growth of our national economy and changes in the energy structure,the growth of petroleum resources in our country has been constantly expanding,and this trend is still continuing.The increase in oil demand and higher oil prices push the market demand for oilfield services and further promote the oilfield service industry to enter a new stage of development.However,at the same time,the loss of oilfield service enterprises is also very serious.In recent years,the loss has become a generalization and normalization of the industry,and the survival and development of enterprises are facing severe challenges.Therefore,the study of the loss of oilfield service enterprises has very important theoretical and practical value.In view of this,this article aims to analyze and study one of the more representative companies in China’s oil service industry-Sinopec Oilfield Service Corporation(hereinafter referred to as "SSC").With the main use of normative research,empirical research and comparative research methods,using Porter five forces model,Data Envelopment Analysis,SWOT analysis and other methods,this articletry is to establish a set of evaluation model of business efficiency suitable for the oilfield service industry and finding out the causes of the losses of the oilfield service enterprises by combining the technical and economic indicators of the oilfield service industry based on the new petroleum market environment,and in order to guide the clear operation of the oilfield service industry focus and enhance the level of profit to provide theoretical support.This paper explores the causes of losses of oilfield service enterprises and the direction of healthy and sustainable development of the whole industry.By combining the actual production and business environment of the enterprise,this paper analyzes the key indicators that affect the profitability of oilfield service enterprises and analyzes the causes of losses.By identifying the causes of losses,and then put forward feasible countermeasures and suggestions,including self-help measures within the enterprise and the government should introduce policies and measures for the sustained and healthy development of oilfield service industries with reference.