Oil prices are currently hovering around the $50 per barrel mark. While this isn’t as low as it has been, it’s a long way off its record-breaking highs. Recently, OPEC agreed on a deal that would try to limit the global supply of oil. And so there’s every chance we’ll see the price of oil rising once more in the near future.
For entrepreneurs wanting to set up in the oil and gas industry price volatility is an issue. So where are oil and gas entrepreneurs setting up their businesses?
Filling Station Business
The filling station business might sound quite run-of-the-mill. But the reality is entirely different. If you get the location right, filling station companies can wind up making a lot of money. Plus, there’s more on offer than just gas. Filling stations have become like mini-supermarkets, providing all sort of sundries to their patrons. What’s more, filling stations are a hub around which new businesses can form. You could set up alongside a car wash company or a car servicing center.
Start An Oil And Gas Servicing Company
If you’ve got engineering skills and want to apply them to the oil and gas industry, then why not start a servicing company? All the big oil companies, like Texaco and Shell, rely on small businesses to keep their operations running. They provide the equipment, like heavy machinery and crane mats to repair pipelines and drilling equipment. The work itself can be challenging and very physical at times. But with the right combination of labor and capital, it can also be rather profitable. Returns are typically high, especially once you’ve landed your first big contract.
Offer Legal Services
Just as there are specialist lawyers for car accidents and medical claims, there are lawyers for oil and gas too. Unsurprisingly, they’re usually referred to as oil and gas lawyers. The industry needs oil and gas lawyers, thanks to some of the unique problems it faces. For instance, oil and gas companies often have to get permission to lay a new pipeline or begin new drilling. They also need legal help making sure that they aren’t sued as a result of damage to property or health. It’s a niche market, for sure. But with the right specialization, it can be highly lucrative.
Start A Petroleum Haulage Company
Believe it or not, haulage is one of the most promising areas for startups in 2016. Despite the fact that the industry has been around for decades, new companies have good survival rates. Petroleum haulage companies transport petrol from seaports and refineries to filling stations. The good news is that setting up a haulage business is relatively easy. All you need is a truck, somebody qualified to drive it and permits to operate a tanker business.
Oil Spillage Cleaning Company
Perhaps the most high-profile oil spillage of recent times was the Deepwater Horizon incident. BP spilled millions of barrels of water into the sea. And the cleanup took months. The chances of spilling oil into the sea are high. So there's significant demand from drillers for companies that can clean up the mess. Just a single project can secure million-dollar profits.