Do You Want to Join the Oil and Gas Business? If YES, here are the 9 ways to join oil and gas business with minimal capital.
The oil and gas business is one of the most strictly regulated sectors, yet it remains amongst the most profitable and risky. This is due to the fact that Crude Oil/Petroleum and its derivatives are essential commodities that are consumed on daily basis.
It is no secret that Nigeria as a country receives most of its revenue from the oil and gas sector. Wikipedia cites Nigeria as the 12th largest producer of petroleum in the world, the 8th largest exporter, and having the 10th largest proven reserves. (The country joined OPEC in 1971). Petroleum plays a large role in the Nigerian economy, accounting for 40% of GDP and 80% of Government earnings.
With the oil and gas sectors being what it is, creating job opportunities and even enriching individuals into multi-millionaires and billionaires. It is no surprise it gathers so much attention with people constantly trying to break into the market.
Joining the oil and gas business be quite capital intensive, but for those that may be short on capital, here are a couple of opportunities that can help you start an oil and gas business with limited capital.
A filling station is a place where premium motor spirit, diesel, cooking gas and kerosene et al are retailed. Investors from across the country have been making money for years through filling stations.
If you’re looking to start an oil and gas business then starting a filling station is one of the ways to go. It is one of those businesses that thrives very well as people would always be in need of its products for daily living.
Filling stations are best located in areas prone to traffic. If you can successfully secure a space in a location like with heavy traffic, then you should consider starting a filling station business.
Please note that you will be required to apply and obtain permits and business license from the appropriate authority before you can successfully build a filling station in any area of your choice.
Another profitable oil and gas related business that an entrepreneur who is looking towards starting a business should consider starting.
This type of business is particularly suitable in Nigeria as gas is not directly supplied to homes and apartments. All you need to start is a shop located in a residential estate, gas cylinders and supply of gas directly from a gas plant.
Retailing of cooking gas is amongst the oil and gas related business ideas that you can start with little startup capital. Please do also note that you will need to carry out some good research.
Major oil companies around the world such as Mobil, Shell, Agip, Chevron and Texaco, amongst others, rely on oil servicing companies such as Halliburton, Schlumberger and Baker Hughes et al, for maintenance and servicing jobs.
If you are looking towards starting a profitable and thriving business in the oil and gas industry and one that requires engineering skills, then one of your options is to start an oil and gas servicing company.
Establishing an oil servicing company requires both skilled labour and capital but if you are able to kick start then you are guaranteed huge returns on your investment
Petroleum product haulage companies are companies involved in the transportation of petroleum products such as premium motor spirit (petrol / fuel), kerosene and diesel from a refinery, seaport, and oil tank farms et al to various filling stations scattered across the country.
Aspiring investors/entrepreneurs looking into investing in the oil and gas business are welcome to try their hands on this as the profits involved are also huge.
To start with you need your tankers, drivers and required permits. It is capital intensive but also quite lucrative.
Read More: How to Start a Haulage Business in Nigeria
Countries where oil is drilled in the deep sea such as In Texas, United States, in Rivers State, Nigeria, there is the likelihood of oil spillages hence the need for professional oil spillage cleaning services. Not everybody can go into this as it requires very skilled manpower and professionalism but the payout as always is enormous.
Production of lubricant is another profitable business in the oil and gas business value chain that an entrepreneur who is looking to start a business can consider.
The market for lubricant products is large and competitive but open to entrepreneurs willing to compete. The range of products under this business, and as long as the quality of your product is assured you are guaranteed a profit.
For those that are not business oriented but still wish to cash in on the oil and gas industry, there is the option of investing in oil and gas related shares.
Investing in the shares of listed companies in the oil and gas sector is a good avenue to get into the oil and gas industry. The shares of such companies are usually in high demand and as such the prices are usually high.
If you have a good stock broker, you could be able to buy this stock at an affordable price when they are available for sale.
One of the easiest and least capital intensive ways to venture into the oil and gas industry is to own a diesel supply business.
On major advantage of the diesel supply business is that you can start from home because the business involves going out there to market to clients and also buying diesel from the source and supplying directly to your client.
The need for lubricating oils in homes, companies, factories and industries cannot be overemphasized. Due to the increasing population and increasing demand, sale of Engine Oil, Break Fluid and Hydraulic Oil et al, is another viable way of making money from the oil and gas business sector.
Lubricating oils are used in various places like vehicles, for daily running as well as during servicing. Generators and various equipment’s also make use of lube oil. This high demand makes this sector one you can readily venture into in the hopes of making profit in.