Abstract:

In recent years，low and ultra-low permeability oilfield development and secondary development of the old oilfields have become the major part of oil and gas field in China. In the financial system of petroleum enterprises，capitals for new well drilling are defined as investment，while capitals for old well maintenance and repair are costs. Such system separates the management of investment and costs. One reason for this is the result of economic development in the early years of new China，another reason is the realistic needs of oil enterprise operation and management. Beyond budgeting theory can solve the problem of investment-cost division in management from budgeting compiling. Petroleum companies should set up cost-profit concept，and realize the investment-cost integration in management on the basis of beyond budgeting theory. At present，petroleum enterprises don’t have the conditions for overall beyond budgeting management，but they can implement the beyond budgeting management which adapts to the present situation. By taking measures to improve budgeting system，establishing a comprehensive evaluation target，and strengthening the investment cost management，oil enterprises will maximize the economic benefit.

Key words: oil and gas field development, beyond budgeting, ultra-low permeability oilfield, investment, cost, integrated management