A Study on Application of Virtual Variables Model in the Forecasting of Material Demand in Oil Field Oil Drilling

Oil drilling materials are an essential material used in the process of oil exploration and development, it is important to predict the consumption quantity of oil drilling materials scientific. Firstly this paper proposes a guiding significance to the demand Forecasting, reviews the research on methods of demand forecasting. Secondly the basic principle of a forecasting model of the virtual variables is introduced. Thirdly the process of selecting the model variables is illustrated. Finally, the process of construction of virtual variable model is analyzed in detail. Its accuracy and a significant are tested. The results show that the predictability of the model is good. It is conducive to the oil drilling material management and control of oil companies.