How Oil Industry Works

Oil industry is one of the important industries in the world that was started thousand years ago. Oil sipping is the main objective of the industry that is converted into several uses.

Determining how oil industry work will help understand why all the prices of basic commodities are affected by its price.

The Pros and Cons of Oil Industry

The oil industry provides us one of the basic commodities in daily life. Definitely, companies would not operate without oil that is why the oil industry is giving big share in the world economy. The oil industry came into existence thousand of years ago where it was used when painting different things. Despite of the vastness of the industry, there are times when the supply of oil is lower than the demand in such a way that it cannot meet the demands of the consumers. Evidently, the oil industry is a major component of the world’s economy. Generally, it directly affects the prices of the different products. This means that when the supply is low the price of the oil will increase and eventually the prices of other basic commodities increase. Likewise, oil production takes into account the large amount consumption of energy.

On the other hand, the oil industry does not only provide positive output but it also contributes negative output. This is because oil industry has a great ecological impact from the drilling, exploration and processing of the product. The seabed ecosystem was disturbed during the pipeline and rig installations. Thus, the underwater structures were damaged due to the toxins released in the water. Nevertheless, according to statistics almost 25 percent of oil consumption all over the world is consumed by the United States. There are two parts of the oil industry that is the Upstream and Downstream. Although it is difficult to identify the importance of oil yet it is important for human beings.

Moreover, the oil industry is not only important for larger companies but also to the transportation sector. Can you imagine what it is like without transportation? Obviously, most transportation methods use gasoline and crude oil that is produced by the oil industry. That is why when the price of oil increased in the international market it directly affects even the local consumers. However, this situation cannot be avoided as the price of the oil will continue to increase due to the limited supply of oil.

In like manner, we should also think that the exploration of the oil industry for possible location spends big amount of money. Thus, the expenses incurred by the company are passed to the consumers in the form of higher prices. With all the information stated above it is just right to use wisely the product as well as protect our environment.


  • prakash gour said on February 21, 2012
    Dear sir, i want to start the oil mill company in Sehore M.P. India. Please guide me how can i started this business.
  • kunal sharma said on May 3, 2012
    i would like to start engine oil manufacturing company small unit in shirdi maharashtra. i would like to know cost of the plant and government subsidy. Thanks & Regards kunal sharma 9028644220
  • Bhaskaranand Sati said on July 8, 2012
    Hi! I would like to start engine oil manufacturing plant(Small unit) in Haldwani Uttaranchal. Kindly guide me about the min investment and govt formalities.
  • rajesh singh said on July 10, 2012
    hi, i would like to start a mustard oil company in hooghly, west bengal. pls give me proper information, thanks, 983178oo71.
  • mathabo said on August 20, 2012
    Hi, I am looking into starting a petrol manufacturing company, I don't experience in the industry whatsoever, but eager, passionate and determined in entering. I am based in Mpumalanga SA, would please advise on how about entering the industry and give a clear detailed information with regards to funding, business plan, target market and please reply to the above email address. Thanks for your time and consideration
  • ravi kumar said on November 11, 2012
    Hi, i want to start pet bottle & jar manufacturing company in patna, bihar. please guide me about business plan, targeting market. thanks
  • V.Ravi Krishna said on November 29, 2012
    Hi, I would like to start the getting the oil from coconut, Sunflower and other seeds, Please advice How to get the training and where can I get the machinery. I am from Hyderabad, Andhra Pradesh. Thanks 9618608678
  • santosk kumar mali said on December 26, 2012
    Hi Sir, I want to start the oil and mirch , dhaniya and haldi powder masal plant so please tell me how to start this plant . Please guide me on this project. santosh kumar MBA Sikar Rajasthan
  • shivashankar said on December 27, 2012
    Hi, I would like to start the caster oil extraction company and i'm chemical engineer so i want manufacture industrial grade oil so ply give me ideas, from bangalore , thanks 9743117344
  • sathish said on December 29, 2012
    Dear Sir, I'm planning to start fried gram processing unit, kindly assist me with the project cost like machinery, working capital etc., Thanks and regards, SAthish
  • Sidhartha said on January 19, 2013
    i am sidhartha. i want to start a mustard oil plant in Sambalpur, Odisha, India. Please guide me.
  • Mukesh Kumar said on February 18, 2013
    sir, I want to start a chocolate manufacturing co. in small scale, please suggest me how I set up the business and how much cost will expenses in small scale and please send me some chocolates factory address in west Bengal. Thanking You. Mukesh Kumar
  • Krishna Binorkar said on April 17, 2013
    Dear Sir, I want all information edible oil industries but min investment and small land my preferred business location is Jalna Maharashtra so please help and suggest me. Thanks..
  • saad said on May 21, 2013
    Sir, I want to start a business of recycling used oil in algeria, please suggest me how I set up the business and how much cost will expenses in small scale. Thanks.
  • manish kumar said on May 29, 2013
    I want to start a oil industry on small level plz guide me my contact no is 09214409979
  • GAUTAM JINDAL said on June 2, 2013
    I dont know more about this business. plz let me know about it thoroughly abt invest and scope for small level of business in this industry. also abt the profit % engaged in this idea. my location is from ludhiana i:e in punjab & my contact no. is 08872609900
  • sajwan said on June 13, 2013
    I am 50, having 20 years relevant administrative an commercial managerial experience. could you please suggest any home based business, specially related to oil. thanks and regards
  • allan mokoena said on August 9, 2013
    Hi my name is Allan n mokoena i live in soweto protea, im totaly in a different industry at the moment but i've always had an interest in the oil recycling industry, i would highly appreciate to get training and a way forward on running this business in all aspects. regads Allan n Mokoena
  • THAZLIM SULAIMAN said on September 12, 2014
    Hi i am interesting to start plastic recycling business as small scale with minimum investment. Please guide me by giving much information and also contacts of such recycling plants located in kerala. I am from kerala, kollam district. thanks and regards.
  • ajay said on December 3, 2014
    hi i am having a planing to start packing unit of refined castor oil(non-edible)grade any suggestions( investment oil rates, machinery cost )
  • Mayank gupta said on December 21, 2014
    Hi sir, i am want to start a engine oil manufacturing company on a small scale in this regard i want to know about the fund requirement and what should be the plant layout and size and how i should start this business. thanks and regard
  • dikeledi said on March 5, 2015
    I would like you to advise me which oil is mostly needed by the mines and also the cost of manufacturing and guide lines and what are the ups and downs
  • Abhishek arya said on April 20, 2016
    Hi sir i want to start the oil mill company in Ghazabad U.P India. Please guide me how can i started this business. my number is 7827633471.And sir please call me as soon as possible .


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