oil and gas business plan pdf

Sample Oil and Gas Business Plan

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 SAMPLE

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.

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Oil and Gas Business Plan

Published Mar.28, 2024

Updated Apr.23, 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

Alex provided us a detailed report on a business we were thinking of buying. The report was very clear and detailed, and he was available to answer any questions. We highly recommend his service

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.

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 criteria. Once leases are acquired, we will conduct geologic and reservoir studies to high-grade the most attractive drilling opportunities.

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.

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-rate business plan development, 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.

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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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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.

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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 .

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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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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.

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.

Related Posts:

• 50 Best Oil and Gas Business ideas You Can Start Today
• How to Start a Kerosene Retail & Supply Company – Sample Business Plan Template
• How to Start a Crude Oil Brokerage Company – Sample Business Plan Template
• 5 Best Marketing Strategies for an Oil and Gas Company
• How to Start Diesel Supply Company – Sample Business Plan Template

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Oil and gas cybersecurity since the Aramco hacks – how has it changed?

Industry experts weigh in on a shifting cybersecurity landscape for oil and gas since major hacks on Saudi Aramco and Colonial Pipeline.

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“It takes experiencing disruption to critical operations for large organisations to take cybersecurity seriously and allocate adequate resources to ensuring cyber resilience.”

This damning analysis by Ross Brewer, vice president and managing director EMEA at cyber firm Graylog, sums up much of the zeitgeist around digital threats in the oil and gas industry until 2021.

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In May that year, the US’ Colonial Pipeline was shut down by a ransomware attack – followed a month later by a $50m ransom demand by hackers who breached Saudi Aramco’s data systems.

This series of troubling events served as “a wake-up call to oil companies and governments, especially the White House”, according to David Bicknell, principal thematic analyst at GlobalData.

“Critical national infrastructure worldwide continues to be under threat, not least because of a more complex geopolitical world,” Bicknell tells Power Technology . “We live in challenging cybersecurity times.”

Early warning signs

Oil and gas conglomerates had their first warning nearly ten years prior.

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Saudi Aramco was again the victim of a ransomware attack, which infected 35,000 computers and impeded daily operations.

“In response [to the 2012 Aramco hack], these large organisations have significantly tightened cybersecurity policies and procedures,” Brewer says. “In the last few years, the industry has begun implementing more rigorous measures and processes to thwart attacks and minimise vulnerability to their environment. For vendors this means going through extensive vetting as well as testing new systems, before allowing new installations.”

For Saudi Aramco, that meant signing an MoU with US operational technology firm Dragos to help secure its critical infrastructure and assets – but only after the second hack in 2021.

There is, however, “more to be done”, in Brewer’s words.

“The global petrochemical industry is uniquely positioned at the crossroads of activism and geopolitics, making it a prime target for diverse cyber threats,” says Brewer. “It is crucial for these organisations to adopt a proactive cybersecurity approach, with robust monitoring systems that detect and neutralise threats at their source.”

One in every ten organisations worldwide were hit by attempted ransomware attacks in 2023, surging 33% from the previous year , when one in every 13 organisations received ransomware attacks, according to Check Point Research.

A target on oil and gas firms’ backs

With cyberattacks on utilities rising by more than 200% in 2023, Bicknell’s assertation that “many of those attacks will be targeted at utilities companies” bears weight.

There is a geopolitical target on many oil and gas companies because of their connections to nation-states. Russia’s Gazprom, Chevron and Exxon in the US, Norway’s Equinor, Italy’s ENI and, most recently, Great British Energy in the UK.

Such conglomerates are massive money-spinners for their respective nations, and therefore a prime target for hacktivists looking to dent a geopolitical rival’s earnings, often through distributed denial of service (DDoS) attacks.

The seemingly constant rise in profits for oil and gas companies also means that more mainstream cybergangs know the rewards of a successful ransomware attack are lucrative.

“The majority of cyberattacks on the oil and gas industry stem from financial motives. Hackers will use spear phishing, ransomware or supply chain attacks to steal sensitive information and demand a ransom,” says Brewer. “This space is particularly lucrative for criminal groups because of the widespread disruption that can be caused by hindering the operations of multinational petrochemical companies.”

Bolstered by governmental backing, analysts expect oil and gas firms’ investment into the highest-rated cybersecurity systems to rise.

But avoiding complacency from top-to-bottom will be crucial in such a targetable and profitable industry, Brewer concludes: “Oil and gas companies need to double down on basic cyber hygiene practices and develop forensic capabilities to effectively identify suspicious activity across attack vectors.”

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Oil and Gas Industry: A Research Guide

Introduction.

• History of the Industry
• Organizations and Cartels
• Oil and Gas Companies
• Upstream: Production and Exploration
• Modes of Transportation
• Downstream: Refining and Marketing
• Subscription Databases
• Oil and Gas Maps
• Oil and Gas Pricing
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Business Reference : Ask a Librarian

Have a question? Need assistance? Use our online form to ask a librarian for help.

Author: Natalie Burclaff, Business Reference Specialist, Science, Technology & Business

Contributor: Michael Ratner, Specialist in Energy Policy, Congressional Research Service

Note: This guide is adapted from the Library of Congress Business & Economics Research Advisor (BERA) issue 5/6: The Oil and Gas Industry by Joseph Sams, Janice Herd, Lawrence Marcus, Ellen Terrell, Angela Wilson, and Joan Sullivan, Specialists in the Science, Technology & Business Division

Created: Winter 2005

Last Updated: August 2022

Get connected to the Library’s large and diverse collections related to science, technology, and business through our Inside Adams Blog. This blog also features upcoming events and collection displays, classes and orientations, new research guides, and more.

Oil and natural gas are major industries in the energy market and play an influential role in the global economy as the world's primary fuel sources. The processes and systems involved in producing and distributing oil and gas are highly complex, capital-intensive, and require state-of-the-art technology. Historically, natural gas has been linked to oil, mainly because of the production process or upstream side of the business. For much of the history of the industry, natural gas was viewed as a nuisance and even today is flared in large quantities in some parts of the world, including the United States. Natural gas has taken on a more prominent role in the world's energy supply as a consequence of shale gas development in the United States, as mentioned above, and its lower greenhouse gas emissions when combusted when compared to oil and coal.

This guide looks at the business of oil and gas and is intended to serve as a research aid to sources worldwide, with a specific emphasis on the United States. It covers a brief history of the oil and gas industry, an overview of companies and organizations, statistic and pricing resources, and regulations. The industry is often divided into three segments:

• upstream, the business of oil and gas exploration and production;
• midstream, transportation and storage; and
• downstream, which includes refining and marketing.

These three areas are reflected in the organization of the guide. Renewable and alternative energy companies are discussed in our Renewable Energy Industries: A Research Guide and  Green Business: Sources of Information Guide . For an overview U.S. energy sources, there have been a number of  Congressional Research Service reports  on renewable energy topics, including:

• 21st Century U.S. Energy Sources: A Primer. CRS Report R46723. Congressional Research Service, March 16, 2021.

Online Glossaries and Reference Guides

The following glossaries are freely available online and can be useful in understanding the terminology used in these industries.

• U.S. Energy Information Administration Glossary Browse or search terminology used in the U.S. Department of Energy.
• Schlumberger Oilfield Glossary External This illustrated glossary includes more than 4,600 entries for a generalist and expert, and includes citations for further reading.
• Nancy and Jake L. Hamon Oil and Gas Resource Center External A guide from the Dallas Public Library, with an emphasis on Texas organizations and agencies, complements digital resources available in this guide.
• The Society of Petroleum Engineers External The website for the Society of Petroleum Engineers contains useful resources such as the Glossary of Terms Used in Petroleum Reserves External . The group also manages PetroWiki External , a community-based site that provides definitions and explains technical concepts.

Reference Books

The oil and gas industry has been covered at length in books and other publications. Throughout this guide, specific resources are recommended within a particular subtopic of oil and gas. Below are books that provide a good overview of the entire industry and may be useful starting points. The following materials link to fuller bibliographic information in the Library of Congress Online Catalog . Links to additional online content are provided when available.

About the Business Section

Part of the Science & Business Reading Room  at the Library of Congress, the Business Section is the starting point for conducting research at the Library of Congress in the subject areas of business and economics. Here, reference specialists in specific subject areas of business assist patrons in formulating search strategies and gaining access to the information and materials contained in the Library's rich collections of business and economics materials.

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• Last Updated: Aug 13, 2024 9:11 AM
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Commonwealth Bank stops lending to fossil fuel companies without genuine emissions plan

Topic: Banking

The Commonwealth Bank has made a major leap in its climate policy, blacklisting fossil fuel companies without genuine emissions plans from its client list. ( ABC News: Margaret Burin )

Australia's largest mortgage lender is no longer offering money to fossil fuel companies that are not aligned with the Paris Agreement.

The bank announced the new direction in its latest climate report, published on the same day it posted close to $10 billion in full-year net profit.

What's next?

The spotlight is now on the other big banks with a finance deal of about $750 million for oil and gas giant Santos on the table.

The Commonwealth Bank of Australia (CBA), the country's largest mortgage lender, is the first major Australian bank to start walking away from funding fossil fuel companies without genuine emissions plans.

In its latest climate report, released on the same day it posted close to $10 billion in full-year net profit, the bank stated that it had already been ditching clients not aligned with the Paris Agreement.

The real-world effects of the bank's new policy could be put to the test as soon as next week, with a major gas loan reportedly being signed off without CBA at the table.

Last year, the bank announced from 2025 it would not provide loans to any coal, oil, or gas companies that did not have a transition plan in line with the Paris goals to avoid dangerous warming. This week's report shows that it is applying that policy early.

Companies' emissions transition plans will be scrutinised by an independent assessor to loan money from CBA. ( ABC News: Michael Barnett )

CBA's loans to fossil fuels decreased by 92 per cent from 2018 to 2022, from $4 billion to $267 million, according to analysis from Market Forces, a group that campaigns against investments in environmentally destructive projects.

The bank also halved its exposure to oil and gas companies in the past two years from $3.3 billion in 2022 down to $1.7 billion.

Exposure represents the money the bank is set to lose if the investment fails.

The bank's new lending rules are a major win for the climate movement and groups such as Market Forces, which have targeted the bankrollers of fossil fuels for years.

"This announcement is massive for the domestic banking sector," Morgan Pickett, a bank analyst at Market Forces, said.

"CommBank is the biggest bank in Australia. "They're the biggest company on the ASX [Australian Stock Exchange]. 

"For them to say we're not banking companies that aren't compatible with a safe climate, this will be a really big signal to the rest of the market, not just the banks."

Court cases, policies, protests, and shareholder climate activism have been ratcheting up the pressure on banks for years.

If a bank commits to the Paris Agreement, but keeps investing in fossil fuels, it exposes itself to legal action.

The Paris Agreement is a legally binding international treaty signed in 2016 by nearly 200 countries to keep global temperature increases below 1.5 degrees Celsius. ( ABC News: Lisa Millar )

CBA was sued twice by the same two shareholders over its climate risk and investment in fossil fuels.

Climate change also presents a major risk for banks. As climate-related disasters increase, they are exposed through the homes covered by their mortgages.

"To help us effectively manage our climate risks, we monitor the impact of weather events and natural disasters on our business and customers, including in our home lending portfolio," CBA's climate report stated.

It calculated that it has about $30 billion in home loans exposed to high physical risks like cyclones, floods, and fires.

And, as Cassandra Williams from Monash University’s Climateworks Centre points out, the world is moving away from fossil fuels, so they are increasingly uncertain investments.

"Climate brings with it both risks from a stranded asset point of view, but also tremendous opportunities that can have a bottom line effect on both your company and your investment returns," she said.

"The writing's on the wall. Companies that move the quickest and approach climate as an opportunity, future-proof themselves for a net zero economy, and will stand to gain.

"This just makes good commercial sense," she said.

"What we've seen now is one of the big four making the move. CBA is leading the charge, and we're really excited to see the other banks, ANZ, Westpac, NAB and Macquarie, what they'll do next."

Transition plans under scrutiny

At the core of CBA's climate strategy are what are known in the corporate world as transition plans.

These comprehensive documents outline exactly how a business is going to bring down its emissions in line with what science says is needed to avert the worst effects of climate change.

According to the International Energy Agency's analysis, the world must not approve any new oil, coal and gas projects to keep within those goals.

"The science is clear. There's enough fossil fuel infrastructure already in existence," Market Forces' Mr Pickett said.

Cassandra Williams is the sustainable finance lead at Climateworks. ( Supplied: Climateworks. )

Commonwealth Bank uses independent assessors to check the transition plans of its fossil fuel clients, and if they do not meet the bank's criteria, it will not loan to them.

Ms Williams says working out what's considered a robust transition plan is becoming a global issue and is turning the heat up on companies.

"Making sure that transition plans are credible will be critical in this piece, and particularly from a 'greenwashing' and a 'greenhushing' perspective," she said.

"This ups the ante for banks, but also for companies … because otherwise your funding, your capital lifeline might be cut off."

Another part of a company's transition plan that will come under scrutiny is the emissions that it covers.

CBA required scope three emissions to be included in the reports. These are the emissions that come from the products the company produces, such as the emissions from gas that is exported and burnt offshore.

Gas giant Woodside's transition plan was rejected by its own shareholders earlier this year , highlighting the increased scrutiny that companies are under.

CBA has put itself ahead of the other major banks in Australia but there is movement in this space.

Westpac has asked clients to have a credible transition plan in place by September 2025.

ANZ told the ABC it is "supporting the energy sector to transition to net zero".

It said its financed emissions for "oil and gas and thermal coal sectors, have reduced by 25 per cent, 30 per cent and 96 per cent respectively, between 2020 and 2023."

The bank also said it wasn't surprised to be included in the analysis by Market Forces as the largest domestic lender to Australia's energy sector .

The National Australia Bank (NAB) released a statement this week saying it capped its oil and gas exposure at US$2.28 billion ($3.48 billion) and no longer loans money to thermal coal, the kind used for electricity.

Its climate report, however, only says that NAB "intends to require a transition plan" from fossil fuel clients by October 2025 and makes no commitment about what will happen if the transition plan doesn't hold up to scrutiny.

"Every dollar that goes into the fossil fuel industry and enables expansion is one dollar that could be going towards a green energy transition," Picket said

"If you're providing a fossil fuel expander with money, even if it's not clearly outlined that it's for [an] expansion project, it still frees up capital within that business to deploy on new and expanded projects which aren't compatible with the safe climate."

Santos deal in the spotlight

Next week gas giant Santos is expected to finalise a deal for about $750 million for its operations, according to Market Forces.

CBA will not be providing financing, however, Market Forces claims NAB, Westpac, and ANZ are in negotiations.

"While CommBank hasn't been explicit that they've dropped Santos as a client, they're not on this deal, from what we can see, the arrangers are ANZ, NAB and Westpac," Mr Pickett told the ABC.

In response to questions about the loan, ANZ and NAB told the ABC it would not comment on any of their customers. 

The ABC has also contacted Santos, CBA and Westpac regarding the loan.

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Think gasoline is too expensive in California? Newsom has a plan to cut pain at the pump

The plan would force oil refineries to maintain minimum inventories to avoid price spikes at california gas pumps..

California Gov. Gavin Newson released a proposal Friday that would force oil refineries to maintain minimum inventory levels. The goal is to stabilize supply and avoid sudden price spikes at California pumps.

The plan, touted as a "first-in-the-nation proposal," would authorize the California Energy Commission to require minimum fuel reserves at oil refineries "to avoid supply shortages that create higher prices for consumer," according to statement issued by the governor's office.

"Price spikes at the pump are profit spikes for Big Oil," Newsom said. "Refiners should be required to plan ahead and backfill supplies to keep prices stable instead of playing games to earn even more profits. By making refiners act responsibly and maintain a gas reserve, Californians would save money at the pump every year."

Had the proposal been in effect in 2023, California drivers would have saved more than $650 million in gas costs, representatives said.

A study by the CEC determined that there were 63 days during 2023 during which California refiners were maintaining less than 15 days of supply, resulting in increased prices, according to the statement.

Officials pointed out similar mandates have been enacted in the European Union, Japan, and Australia.

Maintenance planning requirement

Newsom's plan would also allow the CEC to mandate that refiners demonstrate they have adequate plans to address production loss when conducting maintenance on refinery facilities.

CEC Division of Petroleum Market Oversight Tai Milder said such a policy is needed to prevent oil refiners from using maintenance to increase profits.

"The data is clear: oil refiners have been racking up profits by planning maintenance that reduces supply during our busy driving seasons," he said. "The Governor’s proposal gives us new tools to require refiners to plan responsibly and prevent price gouging during maintenance.”

Previous efforts to 'rein in the industry'

Friday's announcement is the latest in a series of efforts by Newsom to "rein in the industry," according to his office .

A law signed into law last year by Newsom created a watchdog group within the CEC to look out for and penalize companies in the event of price gouging.

In 2022, he proposed levying a  "windfall tax"  on oil companies that made what his office called "excess oil profits."

Highest gas tax in the nation

Meanwhile, California's gas tax increased by 2 cents in July to 60 cents per gallon.

The state gasoline tax is the highest in the nation.

It does not include an additional federal excise tax of 18 cents per gallon.

The Colorado Sun

Telling stories that matter in a dynamic, evolving state.

Draft of Colorado oil and gas rules guts key protection for impacted communities, green groups say 

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The Trust Project

The state Energy and Carbon Management Commission cut a key proposed protection for disadvantaged communities facing oil and gas drilling after a sustained pushback from the oil and gas industry, according to environmental groups participating in the rulemaking.

The commission staff Friday issued a new draft of the so-called cumulative impact rules removing a requirement that oil companies seeking to drill within 2,000 feet of homes in a disproportionately impacted community get the approval of those residents.

“The fact that so many in the industry lined up against this shows how big an issue this was and that the ECMC staff completely caved,” said Mike Freeman, an attorney with the nonprofit environmental law firm Earthjustice.

Tearing out that vital protection, which was sought by environmental groups, just a month before hearings begin gives a big advantage to the oil companies, the activists say.

 “It’s really disconcerting,” said Ean Tafoya, director of Colorado GreenLatinos. “The onus was on the companies to do the right thing. It seemed really disingenuous to the work that everybody collectively did to get to that.”

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Are us wind farms killing thousands of birds, colorado oil and gas operator with long record of environmental violations loses right to do business in state, plan to drill 166 wells near aurora reservoir ok’d with requirement to use cleaner, quieter electric equipment.

The commission said in a statement to the Sun that “given the vigorous debate on this issue in parties’ prehearing statements, staff decided to provide an alternative in this draft so that parties can provide their thoughts on one or both approaches in their responses.”

The commission said the Aug. 2 draft  includes “robust protections” for residents of Disproportionately Impacted Communities or DICs.

These include a more rigorous analysis of proposed locations near homes, schools and childcare facilities and targeted data for each location and best management practices to limit impacts.

“By requiring this information, ECMC will have a better understanding of community concerns earlier on in the permitting process,” the commission said.

“The fact remains that they removed the 2,000-foot setback requirement from the August draft,” Freeman said.

The state does have a requirement that drilling pads be set back 2,000 feet from homes, schools, child care centers and high occupancy buildings.

But an oil and gas operator can drill inside that buffer if it can show it can provide “substantially equivalent protections” as being 2,000 feet away — such as enhanced recovery systems or zero-emissions equipment — or by getting approval of the homeowners or businesses inside the buffer.

In 2023, 19 of the 71 oil and gas development plans approved by the ECMC were inside the 2,000-foot setback, according to the agency’s 2023 cumulative impacts report . In 2022, 26 drilling plans were inside the buffer.

The proposed cumulative impact rules, set for a hearing in September, initially had a requirement that approval of residents inside the setback was essential — without it, drilling could not start. 

The legislature in 2019 directed the commission to assess the cumulative impacts of oil and gas operations, with particular concern for disproportionately impacted communities —  ones that are low income, of color, have vulnerable populations or have disproportionate environmental burdens .

In an annotated version of the revised draft, the commission staff said the setback provision was cut after “robust stakeholder discussions and feedback in the parties’ prehearing statements.”

In those prehearing statements, Colorado’s top oil and gas producers and the major industry trade groups objected to the provision.

The proposed rule, Chevron Corp. said in its prehearing statement, “would essentially prohibit new oil and gas development within DICs … and should be stricken entirely.”

Chevron went on to say that other parts of the proposed rule, such as requirements for enhanced systems and state-of-the-art technologies, provide “special and robust protections” for the impacted communities. 

On the Western Slope many operating areas are designated disproportionately impacted communities not as a result of environmental issues but because they are low income communities, the West Slope Colorado Oil and Gas Association , a trade group, said.

“These lower income areas often are dependent on oil and gas revenue, particularly for schools and special districts,” the association said. “Allowing one DIC member veto power over new development harms the revenue potential for DICs as a whole and lets the voice of one negatively impact the finances of many.”

The industry arguments are “meritless,” Earthjustice’s Freeman said. “What is really going on here is the industry does not want to have a level playing field with communities so they are getting the commission to do their dirty work.”

The late overhaul of the rules in favor of oil and gas industry demands is a betrayal of a hard-fought compromise in the 2024 legislature , the environmental groups say. Activist groups threatening even more restrictive statewide ballot votes or legislative bills — such as outright bans on new fracking wells, or a mandatory summer “pause” for drilling operations during the worst of the ozone season — agreed to drop their efforts. In exchange, the legislature passed bills capping nitrogen oxide emissions and boosting closures of low-producing oil wells. Greeng groups also got a new per-barrel fee on oil and gas production to be used for transit projects and other pollution reduction. The oil and gas industry said at the time it was giving up its own ballot measures defending natural gas-fueled home appliances . 

While navigating those compromises, both sides were participating in the yearslong rulemaking at the ECMC on cumulative impacts and protections for disproportionately impacted communities. Environmental groups wanted more community protections in part because they’d given up ground in the spring’s “grand compromise.”  

“Environmental justice should require consent,” said Rebecca Curry, policy counsel in the Colorado office of Earthjustice. “They just totally took it out of the rules.” 

The September rulemaking hearings will come at the end of a particularly brutal ozone season. There have been 42 state-issued ozone action alerts so far in 2024, with extremely high temperatures cooking oil and gas and transportation fumes into a stew toxic for human lungs. Distant and Front Range wildfires worsened the ozone and particulate pollution with steady plumes of smoke over the metro area. 

Colorado’s Northern Front Range counties are under an EPA mandate to bring ozone under the 2015 70 parts per billion cap within the next few years, or face more sanctions. Metro area gas stations are already required to sell slightly more expensive reformulated gasoline that is less volatile and creates fewer ozone emissions. Regional Air Quality monitors show the Front Range has violated those EPA standards numerous times already in 2024.

Type of Story: News

Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.

Michael Booth Environment Reporter

Michael Booth is The Sun’s environment writer, and co-author of The Sun’s weekly climate and health newsletter The Temperature. He and John Ingold host the weekly SunUp podcast on The Temperature topics every Thursday. He is co-author... More by Michael Booth

Mark Jaffe Freelance journalist

Mark Jaffe writes about energy and environment issues for The Colorado Sun. He was a reporter and editor at The Denver Post covering energy and environment and a reporter on the energy desk at Bloomberg News. Previously, he was the environment... More by Mark Jaffe

Money blog: Morrisons admits it 'went too far' with self-checkouts - as it changes strategy

Welcome to the Money blog, your place for personal finance and consumer news and tips. Today's posts include Morrisons getting rid of some self-checkouts and a Money Problem on topping up your national insurance. Leave your consumer issue below - remember to include contact details.

Monday 19 August 2024 16:43, UK

• Energy bills to rise 9% this winter - forecast
• Morrisons admits it went too far with self-checkouts
• Kellogg's shrinks size of Corn Flakes

Essential reads

• Money Problem : 'Should I top up my national insurance and could it really get me £6,000 extra?'
• Pay at every supermarket revealed - and perks staff get at each
• Couples on how they split finances when one earns more than other

Tips and advice

• All discounts you get as student or young person
• Save up to half price on top attractions with this trick
• Fines for parents taking kids out of school increasing

Ask a question or make a comment

Morrisons has admitted it "went a bit too far" with self-checkouts.

Chief executive Rami Baitiéh says the supermarket is "reviewing the balance between self-checkouts and manned tills".

Some will be removed.

Mr Baitiéh told The Telegraph : "Morrisons went a bit too far with the self-checkout. This had the advantage of driving some productivity. However, some shoppers dislike it, mainly when they have a full trolley."

The executive also said self checkouts had driven more shoplifting.

What have other supermarkets said about self-checkouts?

In April, the boss of Sainsbury's said customers liked self-checkouts...

That prompted us to ask readers for their thoughts - and we carried out a poll on LinkedIn which suggested the Sainsbury's boss was right...

Asda's chief financial officer Michael Gleeson said last week the technology had reached its limit - and said his firm would be putting more staff on tills.

Northern grocer Booths ditched almost all self-checkouts last year amid customer service concerns.

Over at Marks & Spencer, chairman Archie Norman last year blamed self-checkouts for a rise in "middle-class shoplifting".

But Tesco CEO Ken Murphy is an advocate: "We genuinely believe, at the end of the day, it provides a better customer experience."

Ted Baker is the latest in a string of high-street giants to call in administrators in recent years, with shops set to disappear this week.

But how does it affect you? 

Purchases and returns

You can still buy items online and in store until they close, but you could run into trouble returning them. 

If the retailer stops trading, it may not be able to get your money back to you.

If that is the case, you would have to file a claim with Teneo (Ted Baker's administrator) to join a list of creditors owed money by Ted Baker – and even then there's no guarantee you'd get your money back.

If you have a gift card, you need to use it while you still can.

Credits and debits

You can file a claim with your debit or credit card provider to recover lost funds - but how exactly does that work?

• Credit card:  If you bought any single item costing between £100-£30,000 and paid on a credit card, the card firm is liable if something goes wrong. If any purchase was less than £100, you may still be able to get your money back via chargeback;
• Debit card:  Under chargeback, your bank can try to get your money back from Ted Baker's bank. However, be aware that this is not a legal requirement and it can later be disputed and recalled.

Many retailers boosted wages after living wage/minimum wage changes in spring.

Figures show German discount brands Aldi and Lidl top the list of major UK supermarkets when it comes to staff hourly pay - after Lidl introduced its third pay increase of the year in May to match its closest rival.

Meanwhile, Morrisons is at the bottom of the pack for staff pay outside London, with hourly wages starting at the National Living Wage (£11.44).

How do other companies compare when it comes to pay and benefits? We've taken a look...

Pay: £12.40 an hour outside London and £13.65 inside the M25

Aldi announced in March it was bringing in its second pay rise of the year as part of its aim to be the best-paying UK supermarket.

From 1 June, hourly pay rose from £12 an hour to £12.40 outside the M25 and £13.55 to £13.65 in London. 

Aldi is one of the only supermarkets to give staff paid breaks. It also offers perks such as discounted gym membership and cinema tickets, and financial planning tools. However, there are no cheaper meals, staff discounts or bonus schemes.

Pay:  £12.04 an hour outside London and £13.21 inside the M25

As of 1 July, hourly wages for Asda supermarket staff rose to £12.04 per hour from £11.11, with rates for London staff also going up to £13.21.

As part of the July changes, Asda brought in the option for free later-life care or mortgage advice. The company also offers a pension and a free remote GP service.

Pay:  £12 an hour outside London and £13.15 inside the M25

Co-op boosted its minimum hourly wage for customer team members from £10.90 to £12 nationally as the national living wage rose to £11.44 in April.

For staff inside the M25, rates rose from £12.25 to £13.15.

The perks are better than some. Workers can get 30% off Co-op branded products in its food stores as well as 10% off other brands. Other benefits include a cycle to work scheme, childcare vouchers and discounts on its other services.

Pay:  £11.50 an hour outside London and £12.65 inside the M25

Iceland says it pays £11.50 for staff aged 21 and over - 6p above the minimum wage. Employees in London receive £12.65 per hour.

Staff are also offered a 15% in-store discount, which was raised from 10% in 2022 to help with the cost of living.

The firm says it offers other perks such as a healthcare scheme and Christmas vouchers.

Pay:  £12.40 an hour outside London and £13.65 inside the M25

From June, Lidl matched its rival Aldi by raising its hourly wage to £12.40 for workers outside the M25 and £13.55 for those inside.

Lidl also offers its staff a 10% discount card from the first working day, as well as other perks such as dental insurance and fertility leave. 

Marks and Spencer's hourly rate for store assistants was hiked from £10.90 to £12 for staff outside London and from £12.05 to £13.15 for London workers from April.

The grocer also offers a 20% staff discount after the probation period as well as discretionary bonus schemes and a free virtual GP service.

Pay:  £11.44 an hour outside London and £12.29 inside the M25

Along with many other retailers, Morrisons increased the hourly wage for staff outside the M25 in line with the national living wage of £11.44 in April.

Employees in London receive an 85p supplement.

While it's not the most competitive for hourly pay, Morrisons offers perks including staff discounted meals, a 15% in-store discount and life assurance scheme.

Sainsbury’s

Sainsbury's hourly rate for workers outside London rose to £12 from March, and £13.15 for staff inside the M25.

The company also offers a 10% discount card for staff to use at Sainsbury's, Argos and Habitat, as well as a range of benefits including season ticket loans and long service rewards.

Pay:  £12.02 an hour outside London and £13.15 inside the M25

Since April, Tesco staff have been paid £12.02 an hour nationally - up from £11.02 - while London workers get £13.15 an hour.

The supermarket giant also provides a 10% in-store discount, discounted glasses, health checks and insurance, and free 24/7 access to a virtual GP.

Staff get their pay boosted by 10% on a Sunday if they joined the company before 24 July 2022.

Pay:  £11.55 an hour outside London and £12.89 inside the M25

Waitrose store staff receive £11.55 an hour nationally, while workers inside the M25 get at least £12.89.

Staff can also get access to up to 25% off at Waitrose's partner retailer John Lewis as well as 20% in Waitrose shops. 

JLP (the John Lewis Partnership) gives staff a bonus as an annual share-out of profit determined by the firm's performance. In 2021-22 the bonus was 3% of pay; however, it has not paid the bonus for the past two years.

Dozens of Ted Baker stores will shut for the last time this week amid growing doubts over a future licensing partnership with the retail tycoon Mike Ashley.

Sky News understands that talks between Mr Ashley's Frasers Group and Authentic, Ted Baker's owner, have stalled three months after it appeared that an agreement was imminent.

Administrators are overseeing the closure of its remaining 31 UK shops.

One store source said they had been told that this Tuesday would be the final day of trading.

Read more ...

The housing market experienced a surge in activity following the Bank of England's recent decision to cut interest rates, according to a leading property website.

Estate agents reported a 19% jump in enquiries about properties for sale after 1 August, when compared with the same period last year, research by Rightmove found.

It came after the Bank cut rates for the first time in more than four years from 5.25% to 5%.

The lead negotiator for major train union ASLEF has denied the union sees the new government as a "soft touch" after announcing fresh strikes two days after train drivers were offered a pay deal.

Drivers working for London North Eastern Railway will walk out on weekends from the end of August in a dispute over working agreements.

Lead negotiator Nigel Roebuck said it is a separate issue from the long-running row over pay, which looks likely to be resolved after a much-improved new offer from the government.

Over 40 bottles of fake vodka have been seized from a shop in Scotland after a customer reported "smelling nail varnish".

The 35cl bottles, fraudulently labelled as the popular brand Glen's, were recovered from the shop in Coatbridge, North Lanarkshire.

Officers from the council's environmental health officers and Food Standard Scotland (FSS) sent them for analysis after a customer raised the alarm by saying they smelt nail varnish from one of the bottles.

The bottles were found to be counterfeit.

Britons don't have long left to claim cost of living assistance from the Household Support Fund.

Introduced in October 2021, the scheme provides local councils with funding which can be used to support those struggling most with the rising cost of living.

The vast majority of councils operate their version of the Household Support Fund on a "first come, first serve" basis and will officially end the schemes once the funding has run out in September.

The help provided by councils has ranged from free cash payments, council tax discounts, and vouchers for supermarkets and energy providers.

Who is eligible?

Local authorities were instructed to target the funding at "vulnerable households in most need of support to help with significantly rising living costs" when it was first rolled out.

In particular, councils were guided to make priority considerations for those who: 

• Are eligible but not claiming qualifying benefits;
• Became eligible for benefits after the relevant qualifying dates;
• Are receiving housing benefit only;
• Are normally eligible for benefits but who had a nil award in the qualifying period.

If you do not meet these criteria, you can still contact your local council , with many having broadened their criteria for eligibility.

By Daniel Binns, business reporter

Weapons maker BAE Systems is the big loser on the FTSE 100 this morning, with its shares down almost 3% in early trading.

It comes following reports over the weekend that the German government is planning to scale back aid to Ukraine in its war with Russia – in what would be a blow to the arms industry.

German media said ministers are set to slash support for Kyiv to 6% of current levels by 2027 in their upcoming budget.

However, the government there has rejected the reports and has denied it is "stopping support" to Ukraine.

Whatever the truth, the reports appear to have spooked traders.

Other companies involved in the defence sector, including Rolls-Royce Plc and Chemring Group, are also down more than 2% and 1% respectively on Monday.

It comes amid a slight slump in early trading, with the FTSE 100 down just over 0.2%, although the FTSE 250 is up 0.07%.

Gainers this morning include housebuilders Barratt Developments, up 1.5%, and Redrow Plc, which is up almost 3%.

Barratt said today it intends to push ahead with a planned £2.5bn merger with its rival despite concerns from the competition regulator.

Meanwhile, the price of oil is down amid concerns of weaker demand in China.

Ongoing ceasefire talks in the Israel-Hamas conflict have also raised hopes of cooling tensions in the Middle East, which would help ease supply risks and worries.

A barrel of the benchmark Brent Crude is currently priced at just over $79 (£61).

On the currency markets, this morning £1 buys $1.29 US or €1.17.

Winter energy bills are projected to rise by 9%, according to a closely watched forecast.

The price cap from October to December will go up to £1,714 a year for the average user, Cornwall Insight says.

It would be a £146 rise from the current cap, which is controlled by energy regulator Ofgem and aims to prevent households on variable tariffs being ripped off.

The cap doesn't represent a maximum bill. Instead it creates an average bill by limiting how much you pay per unit of gas and electricity, as well as setting a maximum daily standing charge (which all households must pay to stay connected to the grid).

Ofgem will announce the October cap this Friday.

"This is not the news households want to hear when moving into the colder months," said the principal consultant at Cornwall, Dr Craig Lowrey.

"Following two consecutive falls in the cap, I'm sure many hoped we were on a steady path back to pre-crisis prices. 

"However, the lingering impact of the energy crisis has left us with a market that's still highly volatile and quick to react to any bad news on the supply front.

"Despite this, while we don't expect a return to the extreme prices of recent years, it's unlikely that bills will return to what was once considered normal. Without significant intervention, this may well be the new normal."

Cornwall Insight warned that the highly volatile energy market and unexpected global events, such as the recent escalating tensions in the Russia-Ukraine war, could see prices rise further at the start of the new year.

To avoid this vulnerability, Cornwall Insight said domestic renewable energy production should increase and Britain should wean itself off energy imports.

Kellogg's appears to have shrunk its packets of Corn Flakes. 

Two of its four different pack sizes have reduced in weight by 50g, according to The Sun. 

What used to be 720g boxes are now 670g, while 500g boxes have become 450g. 

The newspaper says the 670g boxes are being sold for £3.20 in Tesco - the same price customers were paying for the larger box back in May. 

The 450g boxes are being sold for £2.19, only slightly less than the previous price of £2.25.

Other supermarkets have similar pricing, although in Morrisons the price has gone down in proportion to the size reduction.

The 250g and 1kg pack sizes remain unchanged. 

Kellogg's has said it is up to shops to choose what they charge, but Tesco said the manufacturer should comment on pricing. 

Sky News has contacted Kellogg's for comment.

A spokesperson is quoted by The Sun: "Kellogg's Corn Flakes are available in four different box sizes to suit different shopper preferences and needs. 

"As the cost of ingredients and production processes increase, it costs us more to make our products than it used to.

"This can impact the recommended retail price. It's the grocer's absolute discretion and decision what price to charge shoppers."

WHSmith has launched a café brand as it seeks to expand into the food-to-go market.

The first café is in Princess Anne Hospital in Southampton and offers teas and coffees, hot breakfasts and pastries

Its branding is the same as the Smith Family Kitchen food-to-go range launched three months ago.

WHSmith UK travel managing director Andrew Harrison said: "Whether it's in a hospital or on their journeys, customers tell us that quality food and drink options are what they prioritise most in the different locations we serve.

"That's why we have been doubling down on our food ranges and formats to ensure our customers don't need to compromise on quality or value, as demonstrated today with the launch of Smith's Kitchen."

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