How to make a super-rich petrochemicals business with a tiny investment
In the US, petrochemist is booming.
Petrochemistry is the new oil and gas.
It is the fuel of the future.
And if you are interested in petro chemicals, it’s a good idea to invest in one of the biggest companies on the planet, says Matthew Kline, an energy and environmental strategist at Kravis Roberts.
“The key to the success of the petro chem industry is to have an educated investor base that is willing to invest money into companies that can deliver the big-ticket goods,” he says.
So how do you get that kind of investment?
“If you have a really good idea, a really great product, a good team and you can make a really quick turnaround on a lot of things,” says Mr Kline.
The key is that you have an idea.
And that idea needs to be compelling, says Mr Schaffer.
“You have to make it compelling, that it has a certain price point,” he explains.
“That’s the only way you can really convince someone to get on board with your product.”
The key to successful petro chemistry companies is to make an idea compelling, but also to make sure it has value The key for petro chemical investors is to find a product that can bring a lot more value than just the money you will get out of it, says Matt Kline from Kravis Robertson.
“What you need to have is a good product, that you can deliver value for, and you have to be really good at marketing,” he adds.
“If the product is really good, then it’s going to be the product that people are going to buy.”
What does that mean for petros?
For petro, it means you need a product to bring a huge amount of value, which means a lot less investment.
“Petrochemists don’t necessarily need to be in the oil and natural gas industry, because they can do some of their work in a petro manufacturing company,” says John Langer, an associate professor of chemistry at the University of Washington and co-author of the new book Petros.
“But it’s important to have a product with some value, to drive the demand for petri products and the products that can be made.”
Petrochemical manufacturing is also important for petrol companies because it can provide them with an important market.
“A petro can make all of the fuels we use in our cars, and a lot that can go into your car, but the biggest fuel source for our cars is gasoline,” says Kjell Stordal, vice president of product management at Petrol America.
Petros can make fuels like biodiesel, methanol, natural gas and propane, which can be used to make cars like the Ford Focus, which makes about $1 billion a year. “
So that’s one of our key markets,” he continues.
Petros can make fuels like biodiesel, methanol, natural gas and propane, which can be used to make cars like the Ford Focus, which makes about $1 billion a year.
But the main reason to invest into a petros is to drive demand, because you need more fuel to make the fuel that people want, Mr Klendal says.
“Because if we are making petro products, the demand is going to come from the petrol and diesel market,” he suggests.
The main reason petros are a good fit for investors is because they are a relatively small company, he adds, but they are an important player in the petrol and biodiesel industries.
“They have a very good track record, and they have been very successful,” he concludes.
And with the right investor, they can be even more successful.
“It’s a very low-risk investment, because there is no risk in investing in petros,” Mr Kling says.
You can make petro with a single order.
“Once you’ve invested, they will take care of the rest,” Mr Schach says.
Petrotechnics is an exciting investment for petroprecies investors, but you need good technology and a good business model to make petros viable, says Stordall.
“When you invest in petrotechnical, you need some sort of technology, and the company has to be able to make money, and if you can’t make money then it is not a good investment,” he argues.
You should be prepared to make mistakes if you’re not good at investing in companies that have been around for a long time, like PetroChem.
“Some people don’t invest in these companies because they don’t like the people, or because they think they don ‘t have enough risk,” he warns.
“And when you make mistakes, they are pretty common, because investors have to come back and look again.”