Entrepreneurship in the Downstream Petroleum

Industries

By Labi Francis Onuformi

Department of Gas Engineering University of Portharcourt,PMB 5323 Portharcourt- Nigeria

•INTRODUCTION

•FOCUS

•BUSINESS PLAN

•CONCLUSION

•Entrepreneurship in the downstream petroleum

industries has to do with the refining, marketing

and distribution of petroleum products to satisfy

customer needs. Every enterprise seeks to make

profit by the exchange of value which in the case of

the downstream sector of the petroleum industries

are oils and lubricants such as compressor oils,

industrial oils, Grease, Hydraulic fluids, power

engine oils, turbine oils and hydraulic fluids which

add value to customers.

Our focus is going to be on the marketing and

distribution of these products to customers through

the use of the internet. In 2004 the number of

internet users was 910,060,180 and in 2014 the

number increased to 2,925,249, 355 and at least

35% use petroleum products from live stats. This

shows that petroleum products can be marketed

with ease to these users.

The first step is to have an online oil store e.g.

www.francisoilproducts.com (examples of online

stores are jumia and konga but deal in electronics,

clothing’s and other accessories) and put all our oil

products (e.g. oando oil) online.. The online store

will have a payment gateway such as paypal,

mastercard and others for customers to pay online

to get their products delivered to their door post by

delivery and shipping companies. These oil store

will be serving the whole world since live stats

shows that 48.4% of Asians use the internet , 21.8%

Americans , 19% Europeans and 9.6% Africans use

the internet.

COST OF SET UP FOR START UP

1. THE WEBSITE 20,000

2. PRODUCT 100,000

3. PAYMENT GATE WAY 150,000

4. STAFF SALARY (4 PERSONS) 100,000

5. DISTRIBUTION COST 100,000

TOTAL

470,000

OUR TARGET MARKET WILL BE FOR THOSE

WHO STAY IN PORTHARCOURT GRA FOR EASE OF

DELIVERY OF THESE PRODUCTS AND WE BELIEVE

WE WOULD GROW TO SERVICE THE WHOLE

WORLD BY HOME DELIVERY.

QUESTIONS AN ENTREPRENEUR ASK HIMSELF.

•WHERE IS THE MONEY

•WHO IS WITH THE MONEY

•HOW DO WE REACH HIM

•WHAT DO WE SAY WHEN WE REACH

HIM

The Internet answers the 3rd Question

The site will also attract, convert visitors to

customers and also retain and grow them by having

a membership portal for all the customers’ .These

customers will be given a monthly newsletter of our

products. The site will also be promoted by using

the giant social network Facebook since 1,320

billion persons use Facebook.

CONCLUSION

Bill Gates said “ Any Business that does not

have an online presence will not thrive in this

Generation, that is why the online oil store will

be an opportunity for graduates to start up

since it has a very cost of starting up. It took

radio broadcasters 38 years to reach an

audience of 50 million, television 13 years,

and the Internet just four

THANK

YOU