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Major Measures for Cost Reduction in Oil Enterprises

Liu Chunlin  
Cost fluctuation has a direct influence on all lusinessindi cators of an enterprise.cost fluctuation of oil enterprises is related to nation al policies,resource condition.production scale,forms of lusiness organization ,and level of R D and management.To reduce cost fundamentally,oil enterprises sshould transform operation mechanism,replacing the"output centered"concept with the "performance centered"concept.The following measures may be taken to reduce cost:changing operation mechanism to create a good environment for cost r eduction;deetpening the reform in personnel system to lower the cost of hwman re sources,adopting target cost management to establish a perfect cost control mech anism,reducing cost considerably by scientific means;and strengthening investmen t management and optimizing investment structure to curb cost increase fundament ally.
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