Research On The Investment Strategy Of Exploration And Development In Northeast Oil And Gas Company Of Sinopec

With the rapid development of China's economy and the profound changes in the world's political and economic structure,China's petroleum energy security is facing huge challenges.Northeast Oil and Gas Company of Sinopec,as the only upstream company of Sinopec in the Northeast region,shoulders the political responsibility of ensuring national energy security,and also the economic responsibility of preserving and increasing the value of state-owned assets.Therefore,in order to achieve sustainable and high-quality development of branch companies under the unpredictable external environment,it is necessary to scientifically formulate branch companies' exploration and development investment strategies.Through extensive literature research and in-depth analysis of the problems in Northeast Oil and Gas Company's investment of exploration and development over the years,in-depth external-environment analysis and analysis of the company's own capabilities,and through SWOT analysis methods to identify the opportunities and threats of the Company and its own advantages and disadvantages.According to the analysis,the Northeast Oil and Gas Company should adopt the S + O expansion strategy in the natural gas business and the W + T defense strategy in the crude oil business.It also identified the exploration and development investment strategies of the branch company,"expansion of natural gas production scale investment strategy","low-cost investment strategy" and "joint investment strategy".Concerning the implementation of the strategy of “expanding the scale of natural gas production”,first of all,we must ensure a certain investment in the development and adjustment of old gas fields,and extend the stable production period of the old gas fields.Secondly,in the first four years of the seven-year action plan,it is necessary to strengthen exploration for the reserves and areas that are currently showing signs of growth,and achieve the target of 1.5 billion cubic meters by 2022.Finally,based on the substantial improvement of engineering technology in the three years after the seven-year action plan,further increase exploration and development efforts to achieve the goal of producing 3.5 billion cubic meters per year by 2025.Concerning the implementation of the "low-cost investment strategy" : first of all,it is necessary to break the existing barriers of departments and professions and establish an integrated investment management and control system with efficiency as the core.The second is to properly introduce private capital,cultivate an effective competitive market environment,and significantly reduce investment.The last is to take advantage of the group company's institutional reform and establish a joint investment and development model with the engineering company to realize the beneficial development of low-grade reserves.At the same time,in the process of implementing exploration and development strategies,the corporate culture,organizational structure,human resources,and technical support should be reformed and improved according to strategic needs to ensure the smooth implementation of the strategy and ultimately achieve the strategic goals.A scientific strategy analysis method was used to formulate the exploration and development investment strategy and implementation plan of the Northeast Oil and Gas Company.Its research methods and conclusions have a strong guiding significance for the development of the oil and gas industry in the Northeast Oil and Gas Company.