A Guide to Careers in the Oil and Natural Gas Industry, Business Plan Example

As the domestic oil and gas industry continues its recovery, additional demand is created throughout the market for additional services.  A vital niche in the delivery of vital petroleum products to the market is the always growing pipeline infrastructure that carries oil, natural gas and other similar products to their destinations. (Dey, 2004)  Paramount to this successful distribution network is the integrity and safety of the pipeline network itself.  And quality inspections are a key element in the uninterrupted delivery of all petroleum-related products.TexhomaConsulting and Inspection is being established to fill the increased need by direct pipeline operators and third party pipeline management companies for superior inspection and consultation services. Using a “personal service” approach, Texhoma will deliver highest quality material and infrastructure inspection services and consulting solutions that will assure its clients’ properties continue to perform optimally and safely.

All Texhoma Inspection and Consulting management, whether salaried or contracted staff, are obliged to attempt training for services,  concentrating on customers’ requirements, enveloping administration quality, convenience and professionalism. Whilst differing in substance, the administration contract preparing guarantees that both the specialized authorities and coordination assets act as a group adjusting the desires of the customer. With the improvement of worldwide supply chains and an expanding pattern for sourcing supplies from non-memorable, lower cost suppliers to the industry. The requirement for convenient, specialized skill on location at the merchants’ offices is regularly basic to the accomplishment of the undertaking. With the master specialized authorities in key controls of materials, created structures, tanks and static weight gear, pipeline and channeling frameworks. Procedure/turning hardware, electrical supplies, instrumentation and control frameworks, complimented by particular methodology aptitude in welding and creation, non-ruinous examination (NDE), painting and defensive coatings Texhoma guarantees the task of the right specialized expert to direct assessment exercises on the gear being acquired and assembling procedure being utilized.

Using Texhoma’s unique work process and asset administration framework, particularly created to reflect customers’ operational practices. Structure and methodology for the entire data transfer capacity of operations, Texhoma has the capacity deal with all agreement effectively. The work process framework guarantees the auspicious designation of Technical Inspection assets, issue of task guidelines, receipt of action (review, assisting, reviewing or administration) reports, and therefore preparing the report conveyance to the customer. The principal owner has over 15 years of quality service in the pipeline inspection industry, and numerous, well-placed, decision-making contacts with prospective client companies that he will leverage in establishing and growing his business. The market presents a unique opportunity, at the right time, to suggest a successful enterprise. The purpose of this feasibility study is to help the owners, investors, and other stakeholders’ aid in funding of initial operating costs of the business.

Mission

The mission of TexhomaConsulting and Inspection will be to provide cost effective, timely and valuable inspection and consulting solutions that meet, and hopefully exceed, the needs of their customers. The core value of TexhomaConsulting and Inspection will be a clear focus, commitment and dedication to each of their clients.Whether the action is at the owner’s office, on location amid development and gathering or whilst in-administration whether an individual task, a private task, different administrations task conveyance or a complete undertaking oversaw administrations procurement. Texhoma Consultant and Inspection is situated and organized to convey the most noteworthy nature of specialized administration and guarantee that customer prerequisites are met.

Products and Services

Texhoma Consulting and Inspection will provide the following specific services to the gas and oil industry:

• Inspect and certify pipelines that distribute petroleum products to the final consumer, including pump stations
• Inspect and certify pipeline infrastructure and storage facilities within petroleum processing facilities
• Inspect and certify petroleum pipelines and processing facilities for environmental and safety compliance with federal and state regulations
• Additional consultation services on quality control and as-needed by each client.

Texhoma Consulting and Inspection is focused on conveying the most noteworthy quality specialized administration; guaranteeing specialized honesty, and to give a quality report specifying discoveries in a convenient way.

The organization’s specialized learning of gear concentrates on all parts of modern supplies; development materials, created structures, tanks and static weight gear, pipeline and channeling frameworks, procedure pivoting hardware, penetrating and generation supplies, electrical supplies, instrumentation and control frameworks. Process aptitude of welding and creation, non-dangerous examination (NDE), painting and coatings remains center to Texhoma Consulting and Inspection business. It is supplemented by area particular abilities in oil well boring, control and work over supplies, line funnel and pipeline applications. Through an inhabitant group methodology, having broad involvement in the ranges of funnel assembling and top to bottom neighborhood information of large portions of the world’s principal channel producers. TexhomaConsulting and Inspection gives an autonomous confirmation and in this manner hazard administration from regular issues connected with generation, transportation and logistics.

Technology Considerations

Thorough traceability frameworks have been created and conveyed to guarantee support of basic information and data from steel generation organize through funnel assembling, covering, testing and conveyance to site. To give an extensive task arrangement, these traceability frameworks can be consistently reached out through to pipeline development and authorizing stages. Whether through a task oversaw administration procurement or the conveyance of individual center site examination supervision exercises. Texhoma offers an extensive scope of development/ undertaking site HSE, investigation and testing administrations. This incorporates different specific orders, routines and strategies extending from the procurement of complete site undertaking groups (undertaking all aspects of site investigation, testing and related specialized administrations) to single people undertaking a particular task. Specialized Specialists give review administrations from receipt of gear on location, through gathering and erection to recommissioning confirmation as needed. Progressing HSE, extend or site inspecting and facilitating administrations can likewise be given amid development.

Products/Services Marketplace

As the ongoing need for oil and gas increases, the opportunity for the providers of peripheral services – such as pipeline inspections – also grows.  Market demand for oil drilling and gas extraction increased in 2013 according to IBISWorld Research and is expected to continue.  Previously unprofitable oil and gas sites are becoming more attractive to producers.  This creates greater opportunity for all segments of the petroleum industry, including the services offered by Texhoma Inspection and Consulting. “In 2009, revenue plummeted 33.9% due to sharp declines in crude oil and natural gas prices. And the expansion into unprofitable locations again dwindled.” (PR Web, 2013)  But one year later, energy prices recovered in due part to a 39.2 percent revenue growth.

Though U S natural gas prices also fell from 2010 – 2012, they began showing clear signs of recovery in 2013.  This creates renewed demand for oil and gas field services. According to PR Web, that is projected to grow over the next five years as the global economy continues its revival. (PR Web, 2013) The combined recovery of U S natural gas prices – coupled with strong U S crude oil prices – is projected to produce positive revenue growth. From 2014 to 2018, overall industry revenue is forecast to increase at an average annual rate of 1.3% to $117.4 billion according to IBISWorld. This produces a greater burden on the pipeline infrastructure and creates a clear opportunity for inspection and consultation services in order to maintain network integrity. Additionally to lessen the risk of accidental spillage, leaks, worker injury and other unfortunate events that would not only interrupt service, but bring negative public awareness to an already overly-scrutinized industry. This is the environment in which Texhoma Consulting and Inspection is being established.  Texhoma Consulting and Inspection anticipate developing quality relationships with many interested direct operators and third party management clients.

Texhoma Consulting and Inspection plans to target all oil and gas companies that produce, process, or transport products via pipeline. As of now the company’s target area will consist of the United States. There will be future plans to expand overseas once the business is established and profitable.

There are two primary segments:

• Direct operators (who own and operate a pipeline network): by and large works in a force plant, gas office or oil refinery. One of his or her primary occupation obligations is controlling the stream of oil, common gas or different materials, contingent upon the sort of office they work.
• Third party pipeline managers who administer and maintain pipeline networks owned by non-operating companies (or investors).

Marketing Summary

Texhoma Consulting and Inspection plans to keep up a far-reaching advertising fight that will guarantee most extreme perceptibility for the business in its focused on the business sector. The following is a diagram of the promoting methods and targets of Texhoma Consulting and Inspection. Texhoma Consulting and Inspection showcasing system will concentrate on two portions. The company will implement a strategy that treats customers as a community. This means the company’s resources for marketing will be focused around advertising both personal sales (friendly atmosphere and customer service), and sales promotions (events).

• The marketing budget will not surpass $6,000 per year.
• Marketing advertising will be compatible with the Mission and promote the following objectives:
• 100% satisfaction of the customers, confined through return customers, referrals and reviews.
• To produce a modest profit margin within the first three-years.
• By year two, to reach a healthy net profit.
• Create a presence online by creating a site and putting the organization’s name and contact data with online indexes.
• Implement a neighborhood crusade with the organizations’ focused on business through the utilization of flyers, nearby daily paper ads, and informal promotion.

The owner intends on using a number of marketing strategies that will allow Texhoma Consultant and Inspection to easily target gas and oil companies within the target market. Texhoma Consulting and Inspection will additionally choose to implement a strategy for the internet. This is very fundamental as many potential customers seeks national and local services, such as inspection and consulting businesses, now the Internet to conduct their preliminary searches. The owner will choose the register with online portals in the advent the potential clients can reach the business easily. The company will also develop its own online website. Texhoma Consulting and Inspection will sustain a sizable amount of traditional and print methods for advertising, within national and local markets to promote the inspection services that the company offers.

Management Summary

Initially, all management and administrative functions will be performed by Texhoma Consulting and Inspection owner. The owner has over 15 years in the Inspection Industry with areas of expertise in project management, AWS/CWI and CPW weld inspector, pipe and material inspection, and pipeline integrity.  Working at T/J Inspection as a Senior Compliance Coordinator, Chief Inspector, and working from experience as Operations Supervisor, Superintendent, Sales, Metal Fabricator, and over seven vital certifications within the industry.

During the first few months of its existence, he will serve as primary inspector and consultant as Monroe will identify and hire additional inspectors; who will then provide the majority of the company’s services.

Working as a field office manager and utilities inspector for natural gas pipelines;

• Purchasing; performing clerking duties,
• Payroll and time sheets,
• Paperwork to address compliance issues, and some field work;
• Overseeing crews and inspectors
• Performing post-damage assessments, reviews and environmental project worksheets;
• Working in the field and also the office;
• Going in before disaster strikes;
• Putting plans in place in case there is an incident;
• Ensuring everything is in place;

Within the near future, once business growth justifies, he will hire an office manager and – if necessary – additional staff to perform all administrative duties.

References

A Guide To Careers In The Oil and Natural Gas Industry. (2013). Shalenet. Retrieved from http://www.shalenet.org/assets/careerguide.pdf

Dey, P.K. (2004). Decision support system for inspection and maintenance: a case study of oil pipelines. Engineering Management, IEEE Transaction Vol.51, Issue 1. 10.1109/TEM.2003.822464

Oil and Gas Field Services In the US Industry Market Research Report. (2014). PR Web. Retrieved from http://www.prweb.com/releases/2014/03/prweb11701696.htm

Sadorsky, P. (2001). Risk factors in stock returns of Canadian oil and gas companies. Energy economics, 23(1), 17-28.

The U.S. Petroleum Industry: Statistics, Definitions. (2013). NACS. Retrieved from http://www.nacsonline.com/YourBusiness/FuelsReports/GasPrices_2013/Pages/Statistics-and-Definitions.aspx