business plan oil and gas company

How to Start an Oil and Gas Company – Sample Business Plan Template

By: Author Tony Martins Ajaero

Home » Business ideas » Oil & Gas Industry

Are you interested in starting an oil and gas company? Do you need a sample oil and gas business plan template? Do you live in an oil rich region like Nigeria, Angola, Kuwait, United States, Saudi Arabia, Iraq, etc; and you want to legally tap into the lucrative business opportunities in the oil and gas industry ? If you answered YES to any of the questions above, then I advice you read on with keen interest.

The oil and gas industry is one of the most lucrative industries in any economy. In fact, it has created more billionaires in the world than any other industry. However, tapping into this money-spinning market requires huge startup costs, and this is why many entrepreneurs balk whenever they think about taking a plunge.

The process of starting an oil and gas company is more complicated than starting most other types of companies as the industry is strictly regulated locally and internationally. And getting the required startup funding could take time.

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Oil and gas production is serious business, so you need to invest lots of money, time, and effort to succeed in the long term. This article explains some basic concepts in the oil and gas industry as well the steps involved in starting an oil and gas company.

Over the years, the oil and gas business has undergone various changes, and now, it has become a much-organized business. It comprises three sectors:

• The upstream sector
• The midstream sector
• The downstream sector

All the sectors are very lucrative, and each has its own fair share of market players. Are you wondering what these sectors mean? Here’s an explanation…

• The upstream sector entails oil prospecting and exploration, drilling for oil, and drawing it out of the ground. These activities are the earliest stages of oil production.
• The midstream sector entails transportation, storage, and wholesale marketing or crude or refined petroleum products. Activities in this sector are aimed at moving crude oil from the site where it is drawn to refineries where it will be processed into the various petroleum products.
• The downstream sector entails storage of petroleum products as well as transportation, marketing, and everything else that happens until the products finally get to consumers.

Although several products are made from crude oil, only four of them are in huge demand. These are:

• Petrol or gas (also called gasoline or PMS—premium motor spirit)
• Diesel (also called AGO–automotive gas oil)
• Kerosene (also called paraffin or DPK—dual-purpose kerosene)
• Cooking gas (also called LPG—liquefied petroleum gas).

The demand for these four products is high because they are widely used for everyday activities such as transport, domestic cooking, and so on. With the above in mind, let’s now look at the steps involved in starting an oil and gas company.

Starting an Oil and Gas Company – Sample Business Plan Template

1. define your business model.

You need to be clear from the outset as to whether you will be operating within the upstream, midstream, or downstream sector. To make a well-informed decision, you might need to gather more information about the requirements as well as the pros and cons of each and figure out which seems most suitable for you.

2. Market research

There is much more to learn and understand about the oil and gas industry than meets the eye. And since you are planning to join this market as a new player, you need to conduct extensive research to understand the intricacies of the market and pitfalls or challenges that new entrants are likely to encounter.

In addition, an extensive research of the market will help you know the required startup costs, required equipment, competition, strategies for success and other relevant information about the business.

3. Write your business plan

Every business needs a business plan. In fact, oil and gas businesses need it even more as it helps you plan the various phases of the business and increases your chances of success. Although developing your business plan is no guarantee of your business’s success, not having one is the recipe for failure.

Your business plan includes the goals and objectives of your business, required startup costs, operation plan and cost, market analysis and competition, projected income over the first few years, marketing strategy, unique selling point, exit strategy, and other vital information about your business.

Not only will your business plan guide you through the processes of starting and growing your business, but it will also come in handy when you need to procure startup funding from investors , venture capitalists, and loan-issuing institutions.

4. Fulfill the required paperwork

Starting an oil and gas business requires registering the business and obtaining business licenses and permits. These vary by state and country, so you need to contact the appropriate local agencies to find out what applies in your state or country. Other paperwork includes requesting a tax ID and obtaining insurance.

5. Find a good location

6. Buy and install the necessary equipment

7. Hire employees

8. Market your oil and gas business

We did not go into specific details regarding choosing a location, buying equipment, hiring employees, and marketing your business because how you will implement each of these steps depends on the sector of the oil and gas industry you have chosen to operate in.

For example, the ideal location, required equipment, and suitable employees for a company operating in the upstream sector will differ from those of a company operating within the downstream sector. Yet, this article is meant to be a brief guide, not a comprehensive resource on the topic.

To find out about the ideal location and required equipment for a company in your chosen sector, you will definitely need to consult other resources or contact an expert with years of experience in that sector.

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Oil and Gas Business Plan

Published Mar.28, 2024

Updated Oct.15, 2024

By: Alex Silensky

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Table of Content

The oil and gas sector is a highly regulated industry. A well-structured oil and gas business plan can help navigate these complexities.

According to a survey by EY, inadequate business planning is one of the top reasons oil and gas projects fail to achieve target profitability. “Firms that take a comprehensive approach through integrated business planning are better positioned to withstand market volatility and capitalize on opportunities,” notes Herb Listen, EY’s U.S. Oil & Gas Leader.

In this article, we’ll outline the key elements of an oil and gas business plan along with an oil and gas business plan template. By the end of this article, you’ll understand what it takes to develop a robust oil and gas drilling business plan.

What Is the Business Plan for an Oil and Gas Company?

A business plan for the oil and gas industry is a professional document that:

• Outlines the company’s goals
• Specifies strategies
• Producing oil and gas resources

The oil and  gas station business plan  serves as:

• A roadmap for the company’s operations
• A tool for securing financing from investors or lenders

Here are some key components typically included in an oil and gas business plan:

• Executive Summary:  A concise overview of the business, its objectives, and the key elements of the oil and gas development business plan.
• Company Description:  Details about the company, its history, ownership structure, and legal form.
• Industry Analysis:  An assessment of the current state of the oil and gas industry, including market trends, competition, and regulatory environment.
• Operations Plan:  A description of the company’s operational processes, including techniques, methods, processes, and logistics.
• Marketing Plan:  An outline of the company’s plans for marketing and selling its oil and gas products, including target markets, pricing strategies, and distribution channels.
• Management and Organization Team:  Details about the company’s management team, organizational structure, and key personnel.
• Financial Projections:  Detailed financial forecasts, including projected financial statements, supported by assumptions and analyses.

The oil and gas company should tailor the oil and gas startup business plan to their specific goals and circumstances, and they should regularly update it to reflect changes in the industry, market conditions, and operations.

Why Do You Need a Business Plan Sample for an Oil and Gas Exploration Company?

There are a few key reasons why you would need a solid business plan, like the  biodiesel business plan  when starting your own oil and gas business:

• Attract Investment:  The oil and gas industry requires significant upfront capital for exploration, drilling, equipment, and operations. A detailed oil and gas upstream business model and plan demonstrates to potential investors a viable strategy for generating returns.
• Guide Operations:  An oil and gas field business plan serves as a roadmap for executing exploration and production activities. It lays out key milestones, timelines, capital expenditures needed, regulatory requirements, and operational plans.
• Analyze Economics:  Thorough market analysis, cost projections, pricing forecasts, and breakeven modeling allow testing the economic viability of prospects before committing major resources. The oil and gas exploration business plan quantifies potential returns and profits based on various scenarios.

To illustrate the importance of a sample business plan, let’s walk through the key sections of an oil and gas business plan template for a fictional oil and gas exploration firm called TX Energy:

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Clear and detailed

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Executive Summary

Business overview.

TX Energy is a newly formed independent oil and gas exploration and production company headquartered in Houston, Texas. Our mission is to become a leading operator in the Gulf of Mexico region through the acquisition and development of high-quality offshore prospects.

Management Team

With a seasoned management team that has over 100 combined years of experience in the offshore Gulf, we plan to leverage our deep industry knowledge and technical expertise to build a portfolio of attractive assets.

Business Strategy

Our initial focus will be on identifying and acquiring undervalued offshore leases with proven undeveloped reserves and executing low-risk, high-return drilling programs.

We are seeking $75 million in equity financing to fund lease acquisitions, drilling operations, and general working capital needs during our start-up phase.

Financial Projections

Financial projections show the potential for strong growth and returns, with estimated revenues of $50 million by Year 5.

Company Overview

TX Energy is an independent exploration and production company in the Gulf of Mexico. We were founded in 2024 by a team of seasoned industry professionals with a successful track record in this region.

Corporate headquarters:  Houston, TX

Operating region:  U.S. Gulf of Mexico

Business Concept

Leverage management’s expertise to:

• Identify and acquire undervalued offshore leases
• Optimize development plans for discovered resources
• Execute low-risk, high-return drilling programs
• Rapidly build a diversified portfolio of producing properties

Industry Analysis

The U.S. Energy Information Administration expects the demand for oil and natural gas will grow in the coming years. Some key industry statistics and forecasts:

• The oil and gas market size is projected to increase from $7,625.82 billion in 2024 to $9,347.9 billion in 2028, with a CAGR of 5.2%. (Source –  The Business Research Company )
• The global oil demand is forecasted to rise by 1.7 million barrels per day (mb/d) in the first quarter of 2024. The expansion pace might slow down from 2.3 mb/d in 2023 to 1.3 mb/d in 2024. (Source –  IEA )

Key Industry Drivers and Trends:

Business plan for investors.

• Rapid adoption of subsea tiebacks and multi-well platforms to reduce costs
• Increased interest in re-developing legacy fields using advanced recovery techniques
• Growing regulatory oversight and focus on safety/environmental practices
• Persistent workforce shortages requiring investment in training pipelines

Customer Analysis

Our primary customers will be midstream companies, refiners, and utilities purchasing our crude oil and natural gas production. We have identified the following key players as potential off-takers in the Gulf region:

• Mid-Continent Oil Pipelines (Crude oil transport)
• Kinder Morgan/BP (Natural gas processors)
• Marathon Petroleum (Refiner)
• Southern Company (Utility)

As a non-integrated independent producer, we will aim to establish long-term sales agreements and strategic relationships with creditworthy counterparties. Our go-to-market strategy will focus on:

• Leveraging management’s industry network to engage top prospective customers early
• Ensuring adequate takeaway capacity ahead of new wells coming online
• Negotiating favorable pricing terms based on our high-quality offshore crude
• Bundling gas production with crude offtakes where possible

Competitive Analysis

Large integrated operators such as Chevron, Shell, and BP, as well as several large independent companies, dominate the upstream market of the Gulf of Mexico. Fewer mid-sized players focus solely on exploiting stranded/bypassed reserves on the shelf. Our primary competitors include:

Our primary competitors include:

Relative to these competitors, our key advantages are:

• Unrivaled management experience and technical capabilities specific to shelf opportunities
• Exclusive focus on low-risk, quicker cycle time development projects
• Simple value investment proposition vs. diversified multi-regional operators

Other competitive strengths include a projected low operating cost structure and established relationships with service companies active in the region.

Marketing Plan

TX Energy will position itself as the premier low-risk, low-cost developer of shelf oil and gas resources in the Gulf of Mexico. We will pursue a commodity-focused strategy, marketing our high-quality crude and gas production to maximize netbacks. To support this, we plan to hire pitch deck consultants to help with investor presentations and attract financing.

Pricing Strategy

As a non-integrated producer, we will pursue a commodity marketing strategy focused on achieving maximum netback pricing for our offshore production. Specific tactics include:

• Crude oil – Secure term marketing agreements with refiners or marketers, pricing based on regional benchmarks like LLS or WTI
• Natural gas – Pursue portfolio-based sales to LDCs, utilities, and marketers at Henry Hub+/- basis pricing

Sales & Distribution Channels

We will employ two primary sales and distribution channels:

• Crude oil production – Pipeline connections from offshore platforms to main corridor pipelines like LOCAP and NGPL
• Natural gas production – Subsea tiebacks into regional gathering systems and interstate/intrastate pipelines

Strategic Partnerships

Establishing strategic relationships across our supply chain will be a critical success factor. Key partnership areas include:

• Offshore drilling contractors
• Subsea construction and installation contractors
• Pipeline companies and midstream providers
• Supply boat and support vessel operators

Marketing Programs

Our key marketing initiatives will focus on building brand awareness and establishing TX Energy as a trusted and preferred supplier to Gulf Coast off-takers:

• Investor marketing/participation at industry conferences and events
• Working interest/royalty owner marketing of upcoming development projects
• Direct outreach to commercial teams at potential customers
• Development of professional digital marketing materials

Operations Plan

Oil & gas leases.

Our lease acquisition strategy will initially target offshore shelf properties with the following characteristics:

• Water depths < 600 feet
• Located near existing infrastructure to minimize upfront capital costs
• Proven undeveloped reserves between 10-50 million BOE
• Technically reasonable development plan via subsea tiebacks or platform drilling

We have already identified a pipeline of potential acquisition targets fitting this criterion. Once leases are acquired, we will conduct geologic and reservoir studies to high-grade the most attractive drilling opportunities. This aligns with our EB2 business type that requires the expertise and technical skill of our management team.

Drilling & Completion Activities

We will utilize jack-up and submersible rig types commonly used on the shelf For relatively shallow drilling targets. We will use the best available techniques and technologies to drill all wells and to ensure maximum production rates and recoverable reserves.

Production, Facilities & Maintenance

Depending on the size and scope of each project, we will utilize either:

• Subsea tiebacks to existing third-party infrastructure
• New-build production platforms designed for unmanned operations

Environmental & Regulatory

We are committed to operating at the highest level of environmental, safety, and regulatory standards in offshore space. This includes comprehensive SEMS programs, oil spill prevention and response plans, and other mandatory policies/procedures.

Key regulatory bodies overseeing our operations include:

• Bureau of Safety and Environmental Enforcement (BSEE)
• Bureau of Ocean Energy Management (BOEM)
• U.S. Coast Guard
• Environmental Protection Agency

Organization & Management Team

TX Energy has assembled a world-class team with unmatched technical and regional expertise in the offshore Gulf of Mexico:

• John Watson, Chief Executive Officer –  John has 30+ years of offshore engineering and operations experience. He is a former VP of offshore at a major energy company with expertise in subsea tieback developments and shelf production.
• Jane Litt, VP of Exploration –  Jane has 25 years of experience in offshore Gulf exploration. She was previously a senior exploration advisor at a large independent oil company. She holds a Ph.D. in Petroleum Geology from Rice University.

Additional key hires planned for Year 1 include:

• Drilling Manager
• Production Engineer
• HSE/Regulatory Specialist
• Land/Legal Counsel
• Accounting/Finance support

As we grow, certain additional functions like HR, IT, and engineering teams may be built out internally rather than fully outsourced. This is aligned with our efforts in meeting E2 visa business plans requirements for key personnel hiring and business expansion.

Financial Plan

Based on our phased development plan and production ramp-up schedule, we are seeking $75 million in equity financing to fund TX Energy’s start-up and growth over the initial 5 years period:

Use of Funds

• Offshore lease acquisitions: $25M
• Capital expenditures (drilling/facilities): $30M
• Operating expenditures: $15M
• General working capital: $5M

Projected Profit & Loss Statement

Projected balance sheet, projected cash flow statement.

Overall, these projections in the  coal mining business plan  illustrate TX Energy’s ability to rapidly grow production, revenue, and cash flow in a capital-efficient manner and achieve strong economic returns for investors.

Partner With OGSCapital for a Professional Oil and Gas Business Plan

Over at OGSCapital, we understand just how crucial it is for independent oil and gas outfits to have a really solid, well-polished business plan. Whether you need to win over investors or secure financing from lenders, our team has got your back.

With more than 15 years of expertise in aiding both startups and established businesses in crafting thorough and persuasive business plans such as the  renewable energy business plan  and  logistics business plan , we’re well-equipped to assist.

Contact us today to learn more about our business plan consulting services and how we can help you.

Download Oil and Gas Business Plan Sample in pdf

Frequently Asked Questions

Is oil and gas a good business?

Yes, because the oil and gas industry is one of the largest sectors in the world, generating over trillion in global revenue as of 2022. In 2024, the industry is expected to have solid growth.

How to start your own oil and gas company?

Starting an oil and gas company involves several steps:

Step 1:  Do market research.

Step 2:  Decide your geographical location.

Step 3:  Build a team.

Step 4:  Create an oil and petroleum business plan.

Step 5:  Set up a legal entity (LLC, Corporation, etc.)

Step 6:  Seek funding.

Step 7:  Get the equipment.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rated, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Any questions? Get in Touch!

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Oil and Gas Business Plan with Wise Business Plans

Corporate oil & gas business plan development.

The Oil and Gas Business Planning industry continues to make new strides in the United States in the oil and gas companies, and many small business owners are finding ways to leverage the booming industry to create their own success stories. However, it takes more than a smart idea to start your engine and race toward success in this competitive field of petroleum.

Post-Pandemic Recovery

During May 2020, the amount of gasoline supplied to the market increased to nearly 5.9 million barrels a day, up from 5.1 million in the first week of April but well below the typically more than 9 million before the pandemic. On the other hand, gasoline saw a normalizing demand at around 55%, which improved by 64% during mid-2020. Industry experts expect a slow but steady recovery during 2021, giving hope to the industry operators.

Key Components of Petroleum Business:

• The clarity in Products and Services- The COVID-19 crisis accelerates what was already shaping up to be one of the industry’s most transformative moments. The Wise Business Plans professionals take time to find out which pain point the product or service will be addressing and develop a business plan that accurately communicates it.
• Costing Strategy- The costs associated with embarking upon a business in the Oil and Gas business industry can be challenging, especially in the post-pandemic era.  On its current course and speed, the industry could now be entering an era defined by intense competition, technology-led rapid supply response, flat to declining demand, investor skepticism, and increasing public and government pressure regarding the impact on climate and the environment. However, under most scenarios, oil and gas will remain a multi-trillion-dollar market for decades. Given its role in supplying affordable energy, it is too important to fail. The question of how to create value in the next normal is therefore fundamental.
• Trends- Trends are major in all segments of the economy but especially in those that directly impact the atmosphere.  “Clients operating in this industry have to be aware of regulations, laws, and standards that are enacted by governing bodies.  Without this type of information their business models could suffer significant losses”, says Mr. Ferriolo.  “We do exhaustive, real-time research that protects the client and places them in the best possible position to succeed”, says Mr. Ferriolo.
• Innovation- The industry will need to dig deep and tap its proud history of bold structural moves, innovation, and safe and profitable operations in the toughest conditions to change the current paradigm. The winners will be those that use this crisis to boldly reposition their portfolios and transform their operating models. Companies that don’t will restructure or inevitably atrophy.

How To Get Into The Oil Business

In the oil and gas sector, starting your own company requires a lot of capital, time, and expertise. Even so, as this industry produces multi-millionaires and yields a higher ROI than in any other industry, all your troubles and efforts will be worthwhile.

You should focus on these things if you have previous experience in this area and want to know how to start an oil company.

1. Decide Where to Invest

You can have a filling station or you can drill your wells in the oil and gas industry. One can choose from a variety of options: a service company, a product company, or a company that cleans up oil spills.

It is important to determine your motivations and strengths before making any detrimental moves in this field. Getting a sense of the amount of capital needed can help you make the right choice.

2. Make an Oil and Gas Business Plan

You need to make a detailed oil & gas business plan and list all your resources and liabilities after deciding what you want to focus on. It is imperative to include all the projected operating expenses in your petroleum business plans, such as insurance, permits, licenses, salaries, and ongoing expenses.

A business plan for an oil and gas company will serve as a blueprint for your business. Your business plan will be a valuable tool if you are considering applying for a loan or wish to attract investors. In case you have no prior experience creating business plans , In case you have no prior experience creating business plans, you can hire us to assist you.

Do You Need Help in Creating a Business Plan?

If you need a business plan writer , you no longer have to worry about the complexities of writing a professional business plan. Our MBA-qualified business plan writers have written over 15000+ business plans for over 400 industries in over a decade.

Let our professional business plan writers help you get funding

3. Identify Your Investors

Once you’ve decided what type of oil business is right for you and calculated the loans and funding you’ll need, the next step is to make sure you can get a fair loan.

To run any company in this field, you will need a fair amount of capital from the very beginning, so you may have to consider finding investors. Don’t worry about the capital Here are 7 ways to raise capital for getting into the oil business:

• Self-Funding: If you look around, you may find the capital you need right in your own home. It may come from your already existing assets or savings. You retain full control of the business by providing the initial capital yourself. Angel investors and even single investors can influence the direction of a company.
• Crowdfunding: A method of raising money from a large number of people. Several people pool their small investments to raise the capital needed to launch a company or project. It’s a win-win situation for you. Currently, U.S. oil is the most popular commodity in the world.
• Angel Investor: Private or seed investors (also called angel investors) are high-net-worth individuals who provide financial support to small businesses in exchange for ownership equity. Furthermore, investors can also offer business advice. Particularly if they have oil and gas industry experience, this may be beneficial.
• Friends and Family: Friends and families are the second-largest sources of business capital in the U.S. A family member will be aware of your work history or management experience. It’s likely that they already know about the potential of your gas or oil share, and may even have helped to acquire it.
• Bank Loan: Getting a bank loan is probably the most traditional way to obtain start-up capital. As the bank wants to ensure that you can pay back the loan, you will likely be required to submit a lot of information during your initial application. Our experienced team has helped our clients raise millions in funding through banks (debt financing) and investors (debt/equity financing).
• Small Business Administration (SBA): Despite its long history, the SBA is still a useful source of funding . They offer federally guaranteed loans of up to $5 million to “small” businesses. Furthermore, you will receive the funding you require without compromising your oil and gas business plan. The loan will also likely have light terms and interest rates. SBA’s goal is to boost the economy. A small business loan is one of the easiest ways to get cash. With decades of experience in business credit and lending, Wise Business Plans is uniquely suited to help you. You are just 4 steps away from getting a small business loan .

Pro Tip: Here is a step by step guide on 5 best places to find a venture capitalist

Wise Business Plans has decades of experience in early-stage investments, so we will help you get your first venture capital investment .

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4. check the regulations.

You should check all the relevant regulations, licenses, and permits , as well as your tax identification number, before starting an oil business. You may be aware of some of them from previous experience, but you should always consult a business or tax attorney when addressing legal issues.

Do You Need a License to operate an Oil and Gas Business?

Wise business plans have eased the process to obtain a business license, which is generally necessary to operate an oil and gas business.

Let Wise help you Get your License to operate an Oil and Gas Business

5. Form a Legal Entity

Those in the group will want to shield themselves from personal liability. You can form a limited liability company (LLC) or an S corporation. An LLC is a flexible entity with elements of both a partnership and a corporation. To simplify federal income tax matters, S corporations elect to pass income and losses on to shareholders.

Need to Register an Oil and Gas Business?

We at Wise Business Plans provide you with a wide range of business formation services for incorporating a company in a way that makes the process easy and allows you to stay focused on other important tasks. Our business formation services include

• Tax ID Number
• LLC Formation
• NonProfit Business Formation
• S Corporation Registration

You can form your business entity in just 4 Simple Steps with Wise Business Plans

Open a Business Bank and Get Credit Cards

Personal asset protection is enhanced when you open specialized business banking and credit accounts.

When your personal and professional accounts are mixed, your personal assets (your home, automobile, and other valuables) are vulnerable if your company is sued.

Furthermore, learning how to establish business credit may assist you in receiving credit cards and other financial resources in your company’s name (rather than yours), improved interest rates, greater lines of credit, and more.

6. Set up a Business Bank Account.

Apart from being a requirement when applying for business loans, establishing a business bank account has several benefits.

• Separates your personal belongings from your company’s assets, which is critical for personal asset protection.
• Makes tax preparation and accounting simple.
• It makes tracking expenses easier and more organized.

Recommended: To discover the greatest bank or credit union, read our Best Banks for Small Business review.

7. Open Net 30 Account

To establish and grow business credit, as well as improve company cash flow, net 30 payment terms are utilized. Businesses purchase products and pay off the whole amount within a 30-day period using a net 30 account.

Net 30 credit vendors are reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is the way businesses build business credit to qualify for credit cards and other lines of credit.

Recommended: Read our list of the top net 30 vendors guide to start getting business credit or simply open your net 30 account with wise business plans in seconds.

8. Get a Business Credit Card

It’s exciting to open a business credit card for your firm. A business credit card can assist you to establish credit, safeguard your company financially, access rewards (such as cashback), and simplify cash flow. It can also assist you to manage your expenditures.

Recommended: Learn more about the best business cards in our business credit card review.

9. Build a Great Team

When taking on such a venture, human capital plays a crucial role. You must determine how many employees you need to hire and whether they have enough experience and training to do their jobs well.

Here are some useful team-building tips which might help you in building your team.

10. Use Top-Notch Equipment

Make sure you use top-notch equipment to ensure and protect your business and investments. For those who work directly in the oil production sector, it is extremely important to ensure your piping, control, and measuring systems are all up-to-date.

If you plan to start a procurement and supply company, you should include quality general equipment, such as valves, pumps, and generators, along with personal safety equipment. By providing high-quality tubular to your customers, along with other drilling and wellhead equipment, you will stand out as a reliable and conscientious provider.

11. Choose an Exploration Site

Obtain county and/or state permits for drilling and land use. Execute a lease with the property owner and/or the owner of mineral rights once you determine which party owns the property and if there are no prior claims that might affect your exploration.

In case your seismic data indicates there could be a subsurface trap containing significant oil, drill multiple exploratory wells on the site. Provide all necessary supplies and equipment for well capping and storing oil in storage tanks prior to hiring a drilling company for this purpose. 

Ensure that you have a plan for containing and transporting any natural gas and oil that may be present in your site’s reservoirs. Roads may need to be built to access the site. Trailers or other structures are necessary for offices and living accommodations. Communication capabilities should also be available at the site.

Business Planning for the Oil & Gas Sector

Vigilance is more than ever needed in crafting a solid oil and gas business plan. Smart planning showing commitment and consistency in intentions will always win financiers’ confidence. As part of that strategy, we’ve identified several key components that every oil and gas startup business plan must address, including:

Luckily, a properly written oil and gas business plan is a key element to the process that can help your business raise the necessary capital to purchase equipment, hire staff, and cover operating expenses as you plan to enter the Oil and Gas industry .

Oil And Gas Business Plan Writing Services

Wise Business Plans has had the privilege and the opportunity to create oil and gas Companies that support business owners in this foundational industry, and we have worked hard to build up a knowledge base and the research skills needed to be the premier online provider of oil and gas business plans.

When you’re ready to jump into the action, we’d love to help you start strong and make a mark in the world of energy production, so contact us today to get started on planning your future success.

Download a sample oil and gas business plans template for FREE to get an idea of the basic elements of oil and gas startup business plan writing. Also, you can quickly check our FAQ page for some basic questions and answers.

Wise business plans also offer a net 30 account application . Net-30 accounts allow you 30 days to pay the bill in full after you have purchased products. Net 30 accounts can also make managing your business finances easier. Apply for your net 30 business accounts now

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Sample Oil and Gas Business Plan Template

This article will be providing you with an oil and gas business plan guide or template.

The energy sector of every economy is huge and offers enormous investment opportunities. Whatever your niche area or interests are, starting a business can be very challenging.

However, having a plan makes the process a lot less difficult and helps with better coordination.

Here, we aim to help entrepreneurs who, though being experienced in the oil and gas sector have no idea how to launch their business operations.

OIL AND GAS BUSINESS PLAN

To better organize your plan, there are basic sections that cannot be left out. They touch on the different aspects of running a successful oil and gas business.

They include the executive summary, the company description, and the products & services sections.

Other crucial sections include the market analysis section, strategy & implementation, organization & management team as well as the financial plan & projections sections.

So, how do you develop each of these sections? You’ll want to read on to find out.

i. Executive Summary

As the introductory section of your plan, the executive summary gives a concise overview of your oil and gas business plan. What you should seek to do with this section is make and keep your audience interested by learning about your business.

The basics about your company should be known here.

The executive section always appears first in a plan. While this is true, it should be written last. The reason is this; it should capture all the key aspects of the business plan.

Consider adding certain sections like your business name & location, your services & products as well as your mission & vision statements. Also, the specific purpose of your plan should be added.

Business Name & Location

One of the first things you’ll need to include in your business name as well as its location. Introducing your business is paramount and gives your reader or a starting point on what the business is about.

How does your location positively impact your operations?

Services & Products

Here, you’ll need to give a breakdown of your oil and gas products and services . What specific niche area you involved with and how are your products and services beneficial to your clients.

People only pay for value and you should briefly discuss what value your services offer to your clients.

Mission & Vision Statements

The mission and vision statements of your oil and gas business should shed light on your company’s purposes, goals and values. Your mission statement should tell about why the business exists as well as the purpose it serves.

Also include information on what your business offers.

You should focus on what you seek to ultimately achieve with your oil and gas business for the mission statement. In a nutshell, the vision statement gives purpose to the existence of your business.

It’s important when writing this statement to never leave anything open to interpretation.

Specific Purpose

Every serious business has a purpose. What’s yours about? By clarifying your purpose or aims, your chances of achieving your goals are increased.

ii. Company Description

The company description section seeks to further reveal details about your oil and gas business. Basically, you want to explain who you are, your mode of operation as well as the goals you wish to achieve.

Details to be included are the legal structure of the company, as well as its brief history.

Being an oil & gas business, you’ll have to provide details on the needs or demands you intend to fill or meet.

The company description should give an overview of your services & products while also identifying your target market and your suppliers.

Also, include a summary of company growth backed by financial or market highlights.

Of course, this won’t be complete without a summary of your long and short-term goals including how you intend to make a profit.

iii. Products & Services

While this was covered in the executive summary section, only a summary of it was given.

This section takes a more detailed look at the products and services being offered by your oil & gas business with a focus on the benefits being derived by customers.

Here, you’ll also need to explain the market role of such products & services.

What edge or competitive advantages do your products & services have over those from competitors. Are there new products in the works? Provide information on such.

Here is a sample plan on crude oil refining .

iv. Market Analysis

A lot of work in the form of research is required to demonstrate your understanding of the oil and gas industry.

Your research should provide a detailed sketch of your target market with a focus on key aspects such as its size and demographics.

Have an industry description and outlook with statistics serving as proof. What more? There should be historical, current, and projected marketing data for your oil and gas business.

Also, include an evaluation of your competitors with a special focus on their weaknesses and strengths.

v. Strategy & Implementation

Strategy and implementation have a lot to do with sales and marketing. This is basically an operating plan on how you wish to sell and distribute your oil & gas products and services.

It focuses on market entry, pricing, costs, promotion, and distribution details.

What are your operational plans in regards to the operational cycle of the business? You also want to include information on labor sources as well as the number of employees you’ll need.

vi. Organization & Management Team

The organization & management team section discusses the organizational structure of the oil and gas business.

You want to provide a description of key departments as well as employees by providing an organizational chart.

There should be information about the owners, their level of involvement as well as percentage ownership. Also, profiles of your management team will be necessary.

vii. Financial Plan & Projections

Under the financial plan & projections section, you’ll need some expert help. The services of a professional accountant will suffice.

The key areas analyzed under this section include the historical financial data, realistic prospective financial information, and brief analysis of financial data.

With these points covered, your oil and gas business plan should be ready for implementation. You also stand the chance of getting the much-deserved financing required.

One Comment

Hi dear , Iam from Papua New Guinea,Alotau Milne Bay Province. Papua New Guinea. Iam a Tradesmen, Heavy Diesel Fitter and Maintenance Fitter Machinist. Former Mechanical Maintenance Engineer for BHP STEEL and Ok Tedi Mining LTD Mill Maintenance Rebuildshop. Iam urgently seeking for any mechanical Fitter jobs in Australian Oil Rig Drilling companies and Mining. Any other farming jobs suits my qualifications. Thank you very much for your time and kind assistance. I wait patiently to hear from you soon.

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Free Oil & Gas Business Plan Template

A successful oil and gas business is based on a solid business plan. To help you out, we've designed a business plan template PDF specifically for oil and gas business owners. Get your copy today!

How can an oil and gas business plan help you?

A solid business plan acts as your strategy guide for building a successful oil and gas business.

Whether you're an existing oil and gas business or just starting out, a business plan helps you get organised.

Use a business plan to help secure funding for your oil and gas business.

Get your free oil and gas business plan template:

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