How To Make Money In the Oil Industry

| January 9, 2014 | 0 Comments

Small Oil Drill

For many countries, oil is at the center of productivity. It keeps businesses running, keeps people moving, fuels a nation’s inner-workings, and is even important enough to go to war over. All of this adds up to one conclusion: oil is valuable. In truth, it’s really invaluable.

This value, of course, has its advantages to people who work in the oil industry as well as those who invest in the oil industry. In short, oil provides the opportunity to make a lot of money.

The Jobs

According to AOL, the oil industry is expected to create an additional 1.3 million jobs by the year 2020. In fact, in certain parts of the country oil is credited with single-handedly slashing unemployment rates.

Not only are the oil jobs plentiful, they are also well paying. Per CNN, rig workers and reservoir engineers typically make around $100,000 a year while drilling consultants make over $200,000. Even people who are just starting out can expect to make close to $70,000 working on oil rigs.

Other lucrative jobs in the oil industry include:

Truck Driver: Responsible for moving rigs, equipment, and oil, truckers are vital to the oil industry. They are also in high demand, a demand that is represented by their weekly pay (of up to $2,500 a week).

Field Engineer: A field engineer’s job is to take readings in the field as the drilling process goes on, to evaluate the drill site, and to make sure the drilling is done correctly. This position typically pays between $63,000 and $80,000 dollars a year.

Geologists: According to the American Association of Petroleum Geologists, geologists in the oil industry are very well paid, particularly those who have some experience under their belts: after ten or so years, they can expect to take home around $153,000 a year.

Welders: In high-demand times, welders can really make excellent money. Typically, per the Pittsburgh Business Times, they can expect to make between $18 and $28 an hour. However, during boom times the pay is usually much, much more.

The Investment Opportunities

Oil can still be lucrative for people with no desire to work in the oil industry. This usually comes in the form of investing. Overall, the oil industry offers would-be investors several benefits. These include:

Ease of market entry: Unlike other industries (industries that are geared toward the seasoned investor), the oil and gas market offers ease of entry for even non-traditional investors.

Small-scale deals: A person doesn’t need to take out their life savings to invest in oil; rather, small-scale deals (such as joint ventures or private equity investments) can offer strong returns without a ton of risk. This enables investors to invest small amounts and still receive large returns.

Capital-intensive projects: People who opt to invest in private equity firms, in particular, are often introduced to a myriad of capital-intensive projects. This variety and the knowledge of the private equity firm work together to help the investor make money: equity firms make money when their investors make money. Thus, it is in their best interest to work hard on an investor’s behalf.

This article was written by John Perry.  John enjoys writing about careers and investment opportunities in the oil field.  The oil industry is a great place to make money.

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