One of the most profitable industries that one can consider to invest in is the oil and gas industry. Known for carrying out exploration, extraction, refining, transporting, distributing and marketing of petroleum products among other functions, the industry is a lucrative one with promising returns on investment for entrepreneurs.
This is because petroleum products and their derivatives are essential commodities that are consumed on a daily basis.
However, it’s not always easy to come up with a viable oil and gas business idea even in the midst of many promising ones. Do you wish to invest in this sector but lack a viable and profitable business idea? Here are 7 oil and gas business ideas to consider today.
1. DIESEL SUPPLY: Entrepreneurs looking to leverage the oil and gas sector can venture into the supply of diesel business. This business is thriving and profitable today in Nigeria because diesel is heavily required by churches, schools, companies, malls, eatery, homes, etc., for their day-to-day operations. All that the entrepreneur needs are the right knowledge, right and legal channel of diesel supply, and good marketing.
Diesel supply business is easy and cheap to start. You can start this business from your home. You need to go out there to market to clients after buying diesel from the source and supply directly to your client.
2. FILLING STATIONS: A filling station is a place where the premium motor spirit (PMS), diesel (AGO), cooking gas and kerosene (DPK) etc. are retailed. An entrepreneur can consider going into filling station business as this business is yet another profitable and thriving business in the oil and gas industry.
The automobile population is increasing day by day and if you will invest in this business, you will accrue lots of profit in no distance time. All you need to successfully start up this business is a good strategic location with the vehicular influx to build your petrol station, legal permits and a business license from the appropriate authorities as well as a wide range of services. It is also worthy to note that, this business is capital intensive.
3. KEROSENE RETAILING: Retailing of kerosene is one profitable business idea in the oil and gas sector that you can start today. Kerosene is a light fuel oil gotten by distilling petroleum which is used in heaters, furnaces, and lamps. Kerosene is very vital for domestic household use. One major advantage of kerosene is that it is not highly flammable when compared to petrol and gas.
You can start this business by either supplying kerosene to multiple small-scale retailers or you could get a location where you sell the kerosene directly to the end-users. This business is very easy and profitable with little startup capital.
To start this business, you need to have access to the supply of kerosene, drums, and measuring containers, etc. You have to note that this type of business is suitable for locations where residents use more of kerosene stoves than gas cookers. You can start your kerosene retailing kerosene for domestic household use today.
4. COOKING GAS RETAILING: As the market for cooking gas is increasing daily, retailing of cooking gas is yet thriving, and profitable oil and gas related business that an entrepreneur who is looking towards starting a business should consider starting. This business can commence with little start-up capital.
You should consider starting a cooking gas retailing business if you are serious about making money from the oil and gas industry.
To get this business started, you need a shop located in a residential area, gas cylinders, and supply of gas directly from a gas plant. You can also consider doing home supply and deliveries to boost more patronage.
5. GAS STATION BUSINESS: If you are looking to invest in the oil and gas industry, owning a gas station is another profitable business idea you can venture into today. Gas Station business idea unlike, filling station can be started with moderate capital investment.
This business can be set up both in small towns and large cities. All you need to do is to set up a gas plant with the right license and permit where you do both wholesale and retail sales.
6. PETROLEUM HAULAGE AND LOGISTICS COMPANY: Starting a petroleum haulage and logistics company can be a profitable and viable business idea for an entrepreneur looking to utilize and leverage the oil and gas sector.
This business involves the movement of goods and services in the oil and gas industry. You can venture into this business by transporting petroleum products like petrol, diesel, kerosene etc., with your tankers and other logistics vehicles you may have, on behalf of your client. You simply purchase trucks and transport petroleum products for clients from the depots to their desired destinations.
The requirements for this kind of business are tankers, tanker drivers, the required permits and business licenses, etc. This business though lucrative is capital intensive.
7. BLOGGING: Blogging is another easy oil and gas business you can start today. If you have a flair for blogging and sharing of ideas, why not create an oil and gas niche blog where you share your expertise and ideas in the oil and gas sector. The key to this is quality contents. This will drive traffic to your blog in no distance time, and people will see you as an expert in the scheme of things.
You can monetize your blog by soliciting for adverts, applying for Google AdSense, writing sponsored posts, etc. However, it is worthy to note that blogging requires a lot of commitments, time and consistency to profit from.
This list of profitable oil and gas business ideas will help you in making a decision about your new venture into the industry. Having known them, it is worthy to note that, some good research and feasibility studies need to be carried out before delving into these businesses. This is so that you can be armed with ample information about the business that you plan to undertake. You also need to have proper licensing and permission from the government agencies to undertake some of these businesses.
In conclusion, some of these business ideas require knowledge and expertise to be able to stay afloat in the scheme of things. To get success, however, from these businesses, strategic planning, proper management and skill are required.