Abstract: EVA(Economic Value Added) has been widely used as an effective method of performance assessment and management in foreign countries while an effective set of assessment index of enterprise performance has yet to be established in China.Aiming at problems in some oil enterprises like imperfect management structure，wide interest gap between the management and share holders，and lack of effective and sound encouragement system，this paper studies the problems of distortion and bias in accounting performance index.And after discussing the general principles and method of EVA，the authors suggest，on the basis of empirical analysis，applying EVA to oil enterprise performance evaluation so that correct investment decisions can be made and profits maximized.

Key words: oil enterprises, EVA, performance assessment, accounting index, capital cost, economic profit