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Making it count in the oil and gas industry
Making it count in the oil and gas industry

Making it count in the oil and gas industry

The oil and gas business is one that doesn’t even need any special introduction. We all listen to the news, read newspapers and online blogs and know what it is all about, or think we do. Currently, oil is the biggest driver of a lot of economies in the word and Nigeria being one of the largest producers of crude oil in the world is certainly not left out. Oil is very important to any economy that has it and it is a vehicle to various growths that can be achieved both in infrastructure and otherwise by these economies. Countless opportunities are also available in the oil and gas industry for those who wish to go into it and I won’t even get stated on the amount of millionaires that have emerged from trading in the oil and gas sector alone because I’m sure most of you readers have a god hang of that. Sadly, a lot of people are still scared to go into the business. Young, up-and-coming and promising entrepreneurs have missed out on making an investment of a lifetime in the oil and gas industry maybe due to the uncertainties in the business or due to lack of technical know-how. A lot of people and investors have been stuck looking on from the outside, unsure of the proper way to break into the industry. Do you have a wish to get into the oil and gas industry and make reasonable investments in there? Follow us through the list of five most promising investments you can make in the field of oil and gas and see a whole new world of financial stability open unto you.

1. Oil Refineries. If you are a faint hearted investor or one who does not have the patience to wait a longwhile to start reaping the benefits of their investment, this one is not for you. Also, you should know that this is the most capital intensive of all ventures you could branch into in the oil and gas sector. For example, a refinery takes about two to three years of non-stop construction work and a price range of $5 billion dollars in the least to complete one. That is surely a lot of money and a very big investment for anyone to make. The importance of owning a refinery is that you get to decide the price of your own products. Most of our crude oil in Nigeria gets sent to refineries abroad who then sell back to us at higher rates. Imagine if you had a refinery or refineries that could handle one or all of the barrels we produce daily and how much you would make from being the sole seller. You would also be able to use some of the refined fuel to gain foreignexchange and enter improved deals with businesses abroad. Like I said, this is not for the faint hearted of investors. Sometimes, it usually takes a group oflike-minded investors to come together and raise the funds to build one after which they agree on a profit sharing formula. You would no doubt make a lot of money from this venture if you commit to it.

2. Fuel Importation. Fuel importation is where most of the oil and gas sector billionaires and millionaire got their fortune from. You can also join the sea of heads that have already opted to start importing fuel and make big from it. Currently, the Niger Delta region offers one of the largest routes through which fuel is imported. To run a successful oil importation business, you would need to have in your possession an oil tank firm or petrol stations where they would be stored for after disbursement to customers. You would only be given an international license and permit for the importation of oil upon production of evidence that you own a depot for your product. The good side of the oil importation business is that even if you go into it on the small scale, you are still bound to make a good deal of profit from it.

3. Filling Stations. This is the money making machine for a thousand of other investors in the oil and gas industry. You might have looked around and felt that there are enough filing stations to go round for more years to come but you could not have been more wrong. The oil and gas sector needs more filling stations to effectively market its goods while offering its investor a great deal of profit in the process. The key is to just manage yourself till you get the capital to build one filling station and in a little time, you would find yourself controlling multiple chains of filling stations.

4. Petroleum haulage. Haulage of petroleum involves carrying the petroleum products from one place to the other. For this, you don’t really even need to have a storage depot or filling station of your own but with as little as one tanker, you are in business. You would need to go to the different petroleum depots and load up fuel after which you haul this (usually over a large distance) to your customers, usually filling stations. This business is very lucrative as owners of tankers charge about #150,000 for haulages between Lagos and Kaduna states alone with prices expected to go up as distance increases. The price range per single trip of petroleum haulage ranges from #20,000 to #200,000 for every successful trip made. Multiply this by multiple trips daily and see how much you can go in a week. The profits would surely amaze you.

5. Kerosene Supply The chase of premium motor spirit (PMS) in the oil and gas industry has certainly taken the spotlight off Kerosene which is actually one of the money makers also. Petroleum products usually sell for about #50 per litre from the company itself and dealers can sell for as high as #70, generating a profit well over 100%. Isn’t that amazing?

The oil and as industry is as open as any other and with any capital base you have, you canal ways find a place to fit in and slowly work your way to the top in other cadres. The industry is all for the taking. What are you waiting for?