Over-developed oilfields in East China have gone through suffering situations induced by high cost in recent years. The trend of resource deterioration is irreversible and the deterioration leads to the increasing difficulties in oil and gas exploration and development. The rate of return-on-investment continually decreases resulting from over-rapidly increasing properties, and ever-rising facility depreciation and damage. The space for increasing income and seeking profit is further narrowed by low oil price. These oilfields now move into the period that has huge obstacles to increase profit, confronted with more difficulties in obtaining economic reserves and profitable production. Now the development in over-developed oilfields has stepped into double-high phase, meaning that to avoid ineffective or poorly effective measures and control the fundamental indices like the rise of watercut, natural decline, and so on play the key role in improving development profit. It is necessary to accelerate the build-up of production capacity and enhance reserve, production, and the rate of return-on-investment by actively reforming techniques for the formation of a series of new ones on enhancing oil recovery, as well as advancing the four-unified-into-one management mode of merging production and management, investment and cost, reserve increase and production build-up, and research and production. The concept of focusing on reserve and production must be further switched, meanwhile profit must be realized in all the ingredients of exploration and development during their whole processes, and efficiencies must be maximized. The burden of production and management is relieved, and the focus is switched to profit in an overall and complete way by further recognizing that investment today is tomorrow's cost and strictly controlling property scale to prevent its excessive increase.

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