COST MANAGEMENT TECHNIQUES AND ORGANIZATIONAL PERFORMANCE IN OIL AND GAS INDUSTRY IN NIGERIA
Abstract
This article examined the relationship between Cost Management Techniques and Organizational Performance in Oil and Gas Industry in Nigeria. Relevant data was collected and analyzed using regression method and e-view Statistical Package. The result of the first hypothesis tested reveals that cost management has a significant positive influence on Net Profit (p < 0.05), meaning that a unit increase in CMI increases Net Profit by 0.752 units. Also, the second hypothesis showed that Cost Management has a significant positive influence on the Financial Management Systems, meaning that (p<0.05), a unit increase in CMI, increase FMS by 0.428 unit. The third hypothesis revealed that there is significant impacts between cost management and drilling cost (p < 0.05), that is, better cost management reduces drilling cost shown by (negative coefficient). Based on the findings, this study concludes that efficient and effective cost management influences, net profit, financial management systems and cost reduction in oil drilling method, especially horizontal directional drilling (HDD) for midsize to large-diameter bores. Because of the enormous advantage of HDD in cost reduction and solution it provides in hostile communities, HDD has become the industry’s preferred trenchless method for installing buried utilities over long distances drilling. In view of the findings, and conclusion, the study recommends that Oil and gas companies should sharpen their cost management strategies in order to achieve more net profit, better financial management systems and improved reduction in drilling cost on HDD and minimize conflict in hostile communities, among other advantages.
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Published in INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION
ISSN: 3027-0378
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