Nowadays, there’s no doubt that the oil industry is firmly established. Anyone looking to compete will find an already harshly competitive market. They’ll also find that the fringes of the business are being nibbled at by renewable energy industries like solar power. However, the business is still profitable. It still has gaps in the market that could be filled by the most enterprising amongst us. Here’s what you should be considering if you’re thinking about getting a space in oil.
The opportunities
We talk about getting into the oil business, but the truth is that that can mean a lot of things. There are different niches you might consider getting into. One of the most pertinent, the one we’ll be focusing most on, is drilling and exploration. But there’s also importation and exportation. Setting up a tank farm to sell to distributors, fuel haulage and logistics as well as a fuel tank installation with a Valve Manifold Box. If you want a piece of the oil industry pie but you can’t get the capital to explore, consider one of those options instead.
The team
Naturally, oil exploration (and any other kind of oil business) is complicated. It requires more than one person. It requires a whole team of experts. Financial, business and technical abilities. Geologists and drillers are going to help you find and buy the land for the oil. Bookkeepers keep you on track with your finances. A mentor capitalist is well worth considering getting on board to help you source the capital you’re going to need. These are the people who should form the legal entity that becomes your business. Get them invested and get them committed.
The land
It takes a lot of capital to get yourself to the point where you can start working the land. One way to get yourself that capital is by proving that you have the land to start working. Make sure you get the necessary ownership and drilling permits. One of America’s most fertile environments in looking for oil is the Permian Basin. A Permian Basin landman could be exactly the contact you need to get enough land to make sure your venture is profitable.
The resources
If you get to the point where you strike oil, you’ll find it easier to get the capital to help you continue. However, until you’re a profitable business, you should consider how you spend that capital. For example, it’s not always wise to buy the equipment you might need outright. Instead, consider leasing it. Oilfield rental equipment can help you get things operational initially. Then, when you’re financially successful enough, you can buy your own equipment. To keep the equipment running efficiently, make sure to perform necessary maintenance such as Industrial Rig Casing Cleaning. Similarly, do the same with some aspects of your labor force. Outsource those who aren’t going to be a permanent member of the team.
There’s no doubt that getting yourself to the point of profit in the oil is business is still possible. It takes a lot of work and a lot of capital. If you can take the steps to strike the oil you need, however, you can immediately turn the business into a money making machine.
