Crude oil is arguably the most important natural resource in existence today, and possibly even the most important in history. The oil industry as a whole generates hundreds of billions of dollars in revenue each year.
Due to increased production in the US and Canada, OPEC is predicting a slip in demand for their crude. However, the Texas-based company Tidal Petroleum Inc. stated in a recent press release, “Global demand will always grow while supply will become more costly to produce.” They further state that while demand is not likely to decline, the focus is on where the supply is coming from will shift, explaining that, “Oil production within the US is likely to increase ten-fold in the next 20 years, as many producers are exploring new opportunities in shale production.”
As a result there is a lot of money to be made in various different areas of this multi-billion dollar industry. You don’t even have to be involved in the actual drilling or refining of the crude, nor do you need personal knowledge of the oil industry itself. Here are three ways you can capitalize on the expanding oil industry without any prior knowledge, and without being involved in drilling or refining.
Labor
It’s estimated that 90% of US companies use staffing agencies and the oil industry is no different. In fact with the recent boom in US oil production many companies are finding themselves unable to fill a growing number of positions, especially since as much as 50% of the energy workforce is expected to retire by 2017. This is where you can help.
By starting either a temporary staffing or human resources outsource company that serves the oil industry, you connect those companies with the employees they desperately need, for a fee of course. Temporary staffing agencies typically fill positions on a temporary, permanent, or temp to hire situation, whatever the client requires. Conversely, an HR outsourcing company will handle all HR related matters, including hiring, training, payroll, etc. on an ongoing basis.
Consulting
Consulting companies throughout the world are offering their expertise to other companies in order to help them succeed. In the oil services industry, consultants like Halliburton are employed in various stages from exploration to development planning, well construction, and ongoing operations. They bring innovation, fresh ideas, and expertise to help solve problems, increase profits and decrease expenses for their clients.
Transportation and Storage
Once the oil is extracted it has to go somewhere. Oil and petroleum products are transported in practically every fashion known to man. From pipelines to ocean faring vessels, by rail and over the road by truck. This presents a wide range of flexible possibilities depending on your financial resources. Need to start small? No problem. You can scale your business according to your capabilities, starting with a single truck and gradually expanding your services as well as your reach.
At various stages of transportation from the well to the refinery to the end consumer, oil and petroleum products need to be stored until they can continue on to their destination. This is typically done at independently owned and operated storage facilities. As an independent storage facility operator you would provide onsite storage and security for your clients as well as helping to arrange and facilitate transportation at times. You can even take this area one step further and combine storage and transportation together at a single rate, further simplifying things for your clients.
As long as oil exists in the world there will be an ever growing need for it, providing increased opportunities to capitalize on this multi-billion dollar a year industry. However, as with any other industry remember to do your homework before opening your business.