The oil industry is fast becoming a most in-demand international business today. Sustenance and maintenance of the power supply are a general concern of all nation leaders across the globe. This constant dilemma and fear of diminishing oil reserves is thus firing up many ambitious businessmen to start up their own oil companies.

Now before a person can start an oil company, he should first seek out land that has rich oil and mineral reserves. Be warned that this lucrative mineral hunt will require a great deal of money to start with. The aspiring oil hunter will have to have sufficient facilities, equipment and manpower—all of which will require a huge starting capital. But before getting into the details of running an oil company once established, he should first lease potentially mineral-rich properties for exploration. He should have the legal assistance of a financial adviser or a lawyer for a lease contract that will work for the best interests of both parties—the owner and the lessee. He should have sufficient money to spend for this risky expedition, as well as strong guts to face the gamble.

On the part of the property owner who is leasing out his land for oil exploration, he gains potentially great benefits if and when oil and mineral deposits are found on his land. He will enjoy royalty payment from the company once the mineral deposits are liquidated. Even before that, he will also receive an initial payment for the lease. He has two choices in his contract: Either he agrees to receive a huge initial payment in a lump sum but with less oil revenue percentage in the future; or he may choose to take a smaller payment upfront but with larger royalty in the future. He should choose the latter if he thinks oil reserves do exist in his property.