Oil import and export is a lucrative business, but it requires a significant financial and knowledge investment on the part of an individual. The process of becoming an oil importer is lengthy and requires a thorough understanding of the oil market, as well as the political and economic factors that influence it, as well as the financial means to profit from market trends. Even with all of these tools, forecasting market swings can be difficult, so an oil importer must also rely on a solid education.
A well-run oil import business has extremely high profit margins, and the oil industry is flooded with newcomers who are forced to use unique and sometimes unconventional marketing techniques to gain a foothold. Many of the larger oil companies not only produce but also sell their products through their own distribution channels. A small-time investor who wants to become an oil importer clearly does not have the financial resources to set up a sophisticated refinery and distribution system, so they often buy directly from the big companies.
A businessperson must answer two critical questions in order to become an oil importer: where to get oil and who to sell it to. Because large crude oil corporations have a monopoly over the majority of the world’s oil reserves, the first question is the easier of the two to answer. In order to break into the oil import business, a small investor must locate untapped petroleum supplies. Small, family-owned rigs are a good place to start because they can be contacted directly without going through a middleman.
Individuals should keep in mind that gasoline is only one of many products that can be made from crude oil; petroleum jelly and plastics, for example, are heavily reliant on oil for their production. To be a successful oil importer, an investor must think outside the box and concentrate on supplying each of these industries while avoiding the fierce competition that some of the larger corporations face. The ability to see untapped opportunities across various fields and having the resources to capitalize on them is critical to success as an oil importer.