Is it possible to open up a new petroleum company?

Question

Hi, I know my question is weird but I want to know if an experienced businessman in the fireld of petroleum can open up a petroleum company similar to ExxonMobil, Shell,Gulf Oil, Total etc

Answer 1

money beats experience. you'd need AT LEAST 100,000,000 in cash or bonds

Answer 2

Yes.  You would have to create everything from scratch, including upstream and downstream operations.  Upstream includes exploration and production (finding oil and getting it out of the ground), transportation (usually a pipeline or large ship), and all of the associated land rights, mineral rights, right-of-way, EPA regulations, FERC regulations and SEC regulations if it's a publicly traded company.

Downstream includes your refinery, distribution (usually a pipeline), filling stations (not your local gas station, a place where 18-wheelers get loaded with gas/diesel/etc), and retail outlets (your local gas station).

Most larger companies don't own their retail outlets any more, they're mostly owned by a franchisee who paid a lot of money to have the Exxon/Shell/Total name on the sign, and they have to buy all their gas from the company, and they have to buy all their signs and advertising and other junk from the company, and they have to participate in every stupid program that the company recommends, and on and on.  The money in retail gas sales is in the food/drinks/beer/cigarettes because they only make a few pennies per gallon sold.

Experience is not the key issue, it's money.  Lots of money.