Considerations on Establishment of Environmental Cost Accounting System in Oil and Gas Enterprises

With the continued advancement of ecological civilization construction and the implementation of sustainable development of the Chinese petroleum industry police, doing a good environmental protection work is important and necessary for oil and gas companies. In order to reflect their environmental responsibilities to the whole society, it is necessary to set up a new environmental cost accounting system. In this paper, we explain the necessity of setting up the system, present the recognition criteria, and the group standard and characters of the environmental cost, and provide an imagination that the environmental cost should be checked in two phases: one based on financial accounting and another application under mature environment. In addition, we emphasize that the enterprises should correctly deal with three relationships between economic and environmental benefits, between environmental protection and cost, and between ex ante environmental prevention cost and ex post environmental remediation cost.