After working in the cloth industry for a relative in Hamburg, he moved to Bergen in 1843, bought a river in Arna for 200 specidaler borrowed money and started manufacturing cloth; as one of the first manufactures in the country, profits gained were high due to protectionism against import of wool. He left Norway in 1844 and wandered about Europe, returning in 1848 with sufficient knowledge to start the plant. By the 1860s 4-500 people were working for him.
In 1878 he started a factory at Dale Other ventures included shipping, mining in Sunnhordland with Nils Henrik Bruun, the glass mill in Bergen and initiated the water- and power utilities in Bergen.
Jebsen was mayor of Haus, later city councilor in Bergen. He was elected to parliament in 1874-76 and in 1880-82, and was one of the greatest promoters of the construction of Vossebanen railway; personally guaranteeing for part of the construction costs. Later he was consulate in Bergen for Sachsen and later Germany.
He married twice and had twenty-three children.
The life of Peter Jebsen is detailed described in the book: Slekten Jebsen fra Broagerland, Danmark (in Norwegian). Written by Kaare R.Jebsen and Peter M. Jebsen, 2004. ISBN 82-303-0345-2
(4) Book: Slekten Jebsen fra Broagerland, Danmark (2004). ISBN 82-303-0345-2