If you’ve ever taken a trip to the UAE, then you’ve probably been amazed by how rich everyone seems to be. Likewise, if you watch sports, then you’ll notice many of the team owners have impossibly high net worths. In a lot of cases, the two instances have one thing in common; oil.
The oil industry is massive, and many billionaires are created in it. So, this begs the question; should you start your own oil exploration company? Before you start jumping for joy at this seemingly incredible idea, make sure you know the pros and cons.
Pro: Loads of Money to Be Made
Yep, the main advantage is that you can make so much money. It’s no coincidence that some of the world’s wealthiest people have dipped a hand or two in the oil industry. According to Forbes, the oil industry is amongst the most profitable in the world, as well. In effect, the costs of starting and operating this type of business are reasonably low compared to the colossal profits you can generate.
Pro: An Exotic Business Idea
If you’re sick and tired of working in a dull office in your home city, then an oil company may appeal to you. It’s a job that takes you out to some of the most exotic and unique places all over the world. You’ll spend so much time in different locations, working in temporary offices with excellent views. Or, you can get up from behind your desk and explore your sites to see how everything’s going. It’s not your average job, which is why many people love the thought of it.
Con: High Risks Involved
The oil industry is constantly playing with fire. You’re always one mistake away from a substantial crisis – just look at the BP oil spill from a few years ago. The risk of things like oil spills are high, and they can destroy your reputation. Granted, technology has improved, and there are now products that reduce the chances and impact of potential oil spills. You can see more about this online, but small startups like yours will struggle to recover from a situation like this. So, it’s a case of whether or not you feel like the rewards are worth the risks. If you do, then you must make sure you put so many measures in place to safeguard against potential catastrophes.
Con: Lots of Competition
The main thing that holds most people back is the thought of competition. BP was mentioned above, but think about all the other massive oil companies in the world. It will be hard for a new name to come in and compete. Bigger companies have more resources and know the best places to mine for oil. To have a chance of competing, you’d probably need outside investment from someone with knowledge of the oil industry and a commitment to mining this resource.
All in all, is this the best business idea in the world? For many of you, no. But, for some of you, the pros might outweigh the cons. If you know a lot about this industry, have experience working for other oil companies, and have the funding, then it could be perfect for you.