Oil and Gas Opportunity: Start a Crude Oil Brokerage Business

In the Oil and gas Industry, Crude oil brokerage is very lucrative, as it offers a high and fast income earning potential.

Crude oil brokerage business is one of the opportunities that require little start – up capital with pretty huge returns.   One of your best business options is to start a crude oil brokerage business.

It is one of the best opportunities for a beginning wealth builder to start a petroleum products marketing business without capital investment.

 You may be wondering how that is possible, learn more about what the crude oil brokerage business entails, and the steps involved in starting the business.

Crude oil brokerage simply involves looking for buyers and end users of crude oil products on behalf of one or more major independent petroleum products marketers that you have already established a sales agreement with.

For instance, if you are able to secure a buyer who needs 30,000 liters of AGO or DPK and a marketer who has agreed to pay you a commission of 50k per liter, you will earn N15,000 from that deal alone.

By this method, you can make money without investing anything except the time spent in looking for buyers.

The more customers you can attract, the more profit you will make every month and the more companies you have deals with.

Nevertheless, you must bear in mind that the business goes far beyond the description above, as there are certain intricacies and trade secrets that are known only to veterans in the business.

You will have to learn the more on your own or on-the-job for you to understand this oil and gas business completely.

The steps involved in starting a crude oil brokerage business include the following:

1. Learn the basics of this oil and gas business to have better understanding

This is one of the necessaries step you should take is to learn the various terminologies used in the crude oil trade.

These are some of the most commonly used terms and their meanings:

FOB (Free on Board)

 This is classic maritime sales term which means the seller must load the goods on board the ship nominated by the buyer.

The costs of clearing the goods for transportation or export are borne by the seller.

TTO (Tanker-Take-Over)

In this situation, the buyer takes over the hiring of a loaded tanker along with the product it contains.

TTT (Tanker-to-Tanker Transfer)

 This means that the buyer hires his own vessel and uses the same to purchase products from the seller.

These terms describe the diverse forms of delivery arrangements between buyers and sellers of petroleum products.

There are still many other terms used in the oil and gas business, which you will have to learn before proceeding into real business.

2. Connect with genuine oil marketers in the business

 Having understood the terminologies used among oil marketers and sellers, you would need to find genuine oil marketers.

You can search the web for reputable major oil marketers around you.  Then, you can connect with them to inquire whether they work with brokers and how much commissions they offer, if they do.

3. Search for genuine buyers

You will start searching for buyers when you have found oil marketers that you can work with.

You may approach big consumers of petroleum products and offer to link them up with your marketer in the oil and gas business.

 Most consumers will be reluctant to buy through you at first, but you can attract them into doing that by offering a slightly lower price than what their current oil suppliers are offering.

 If you are able to land a number of large-scale consumers, you could become rich overnight.

Though, convincing sellers to buy from the marketer you are promoting is not an easy task, as most consumers are dubious.

There is much more to know about this business than the information you have learned in this post.

You would start raking huge profits soon after starting your crude oil brokerage business in the right way. This might just be your gateway into bigger oil businesses.