Business Ideas in the Petrochemical Industry
Petrochemical Industry includes complex operations like refining, transporting, distribution and marketing petroleum products.
Although petrochemical business doesn’t include exploration and extraction of oil and gas but still it is a complex business.
The processing of oil and gas demands a large-scale operation. It is a very complex business as it requires huge investment in setting up refineries, utility units, new technologies, manpower and time. Therefore, a common man with limited capital cannot start a petrochemical business.
However there are some verticals that offer opportunities to start a medium scale oil and gas business with comparatively low capital.
I have jotted down a list of 10 such business ideas for oil and gas entrepreneurs. With a good planning and thorough research you can start a petrochemical business.
Here are they …
1. Kerosene Retailing Business
The easiest and cheapest petrochemical business idea is starting a kerosene retail business. Kerosene has various applications like cooking, light lamps, water heaters etc.
In Kerosene retailing business you buy kerosene in bulk from authorized depots and sell it to customers for household usage. To start a kerosene retail shop you have to apply for relevant licensing from the state government.
You also have to construct a storage tank and a dispensing pump to dispense kerosene. Check your local market to know more about potential of kerosene retailing.
2. Lubricant Oil Production and Retail Shop
Without lubricant oil an engine cannot perform efficiently. Lubricant is an essential part of any type of combustion engine. The increasing vehicle sales and industrial automation have created a huge demand for lubricant oil.
Therefore you can start a lubricant oil production business in your area with some initial investment.
You have to first acquire land, find a supplier who can provide raw materials at cheaper rates and buy equipments like mixers, tanks, conveyor belts etc.
After setting up the production plant you can also open a retail shop where you can sell products offline as well as online.
3.Petroleum Logistics Services and Supply Safety Equipment’s
Next affordable petroleum business idea to launch is petroleum logistics services and supplying safety equipments.
Also known as fuel haulage or Petroleum logistics is a very profitable business in midstream sector. Your company is going to transport fuel from the depots to petrol pumps.
Oil tanker trucks carrying petrol and diesel seen on the roads areoperated by logistics companies.
Another business idea is supplying safety equipments and materials to the petrochemical industry. You as a contractor will provide Personal Protective Equipment to the industry.
You can set up a retail business which is going to procure safety equipments and supply to oil and gas industry.
4. Oil & Gas Broker
Becoming an oil and gas industry broker is the easiest petrochemical business idea. You don’t require a large capital to get started.
If you have worked earlier in the oil and gas industry and have contacts with the people in the industry then this business is for you.
A broker is a middleman who brokers between the companies who own products and customers who need products. Whenever a successful business is carried out you get paid.
However you must have good understanding of product sourcing, regulatory framework and relationship with major players in the industry.
5. Gas Agency Dealership
In developing countries like India there is a huge demand for new LPG gas connections and refills. It is estimated that there are 250 million householdsin India with LPG connections. There are over 100 million who are without any LPG connection.
This means businessmen across the country have a great opportunity to start their own gas agency dealership business.
To start a gas dealership business you can apply for the dealership license first and after nomination you can start the business.
However to start this business you need to meet infrastructural requirements like godown for LPG cylinders and a showroom. You also need delivery vehicles to deliver gas cylinders at the customer’s doorstep.
6. Petrol Pump Dealership or Gas Station
Petrol pump dealership is the most lucrative business in any given country.
We have seen vehicles lining up in front of petrol pumps to fill their tanks. The number of vehicles hitting the road is increasing day by day.
According to an estimate every petrol pump in India sells more than 500,000 liters of petrol and diesel each month.
You can tap into this market by starting a petrol pump near a state/national highway or a busy market area. You can partner with a company like Bharat Petroleum Corporation Limited (BPCL) and became a petrol pump dealer by opening a retail outlet as a franchisee.
You have to acquire an area of 800 square meters to 1000 square meters to open a petrol pump.
7. Petrochemical Consultancy Service
If you have knowledge and experience in oil and gas industry then you can start a consultancy service. Big energy companies need experts who can advise them on a lot of issues.
Most of the energy consultants provide consulting services for manufacturing and marketing segment to their clients. Some of the areas where you can offer your consultancy are oil & gas exploration, production, refining & marketing, manufacturing etc.
But to start a consultancy service business you have to have 10 – 20 years of experience in petrochemical industry.
8. Petrochemical Magazine Publication or Blogging
With years of experience in the energy industry you can launch petrochemical magazine publication or a blog.
You can share your experiences in oil and gas industry with online readers. Your publication will provide information to energy companies as well as employees who work there.
Blog is the cheapest way to reach out to your readers.
Your magazine and blog will help your readers stay updated with the new technologies, innovations, tools, policies, regulatory framework, and events in the industry.
The next two business ideas are not for everyone. These two businesses are very capital intensive and require a lot of capital to get started. They are not for small or medium entrepreneurs. If you are not a big business house with a huge capital to invest then feel free to skip.
9. Oil & Gas Exploration and Drilling
As I said earlier starting an oil & gas exploration and drilling business is a very complex and capital intensive business. Your company has to locate potential sites within a basin that may contain high volumes of hydrocarbons. Setting up an oil rig in the middle of high seas requires huge infrastructure.
However profit margins in this business is very high.
If you are living in a region with a high volume of hydrocarbons beneath the earth surface then you can start this business.
10. Petrochemical Refining Business
The last petrochemical business Idea is petrochemical refining business. Refining transforms crude oil into finished petroleum products like petrol, diesel, gas and other intermediates.
This business requires a huge industrial complex that may contain different processing units and facilities like utility units and storage tanks.
You must have your unique combination of refining process determined by a number of factors like refinery location, desired products, economic needs etc.
These were 10 business ideas in Petrochemical Industry. Starting a petrochemical business is a serious endeavor and not everyone can do it. It is capital intensive as well as very risky. However, profit margins could be very huge if you succeed.