How to invest in oil secured is the art of being a founding equity partner in very high return crude oil ventures that hedge well against inflation and have no exposure to the typical energy equity market fluctuations.
Investors in the oil industry today will typically invest in oil passively or actively through energy stocks, exchange traded Funds (ETF) or exchange traded notes (ETN) to take advantage of the fluctuations in the oil industry prices. Securing one’s involvement in any investment must have a strategic plan, be direct and have active management in order to control the investment. It is to this end that it is important to also look at other oil industry investing ventures that consistently yield security through good pre-designed management to establish significantly large profit margins to offset any fluctuations that emanate from the market or market cycles.
Oil in Nigeria has all the opportunities in an emerging market for significant profits. Whether you are a large or small capital investor or a sweat equity investor, there is room for you in the crude oil market in Nigeria as long as you learn how to invest in oil by working assiduously towards the know how, the strategy and involve yourself with a knowledgeable and adept team that cradles profitable results well. It is simply the process of knowing how to invest in oil. If part of securing your investment is to increase your return on investment (ROI), this additional security is realizable because founding equity partners generally receive a higher equity shareholding than subsequent purchasers of company shares/stocks after operations have kicked off. Let’s take a look at some of these opportunities on how to invest in oil:
Profiting from Crude Oil in Nigeria
Nigeria is the 8th largest oil producing country in the world and a member of the Organization of Petroleum Exporting Countries (OPEC). Nigeria has proven reserves of 32.5 billion barrels of crude oil and Gas, 187 trillion cubic feet respectively and produces approximately 1.5 million barrels of crude oil per day. Opportunities also exist in the Upstream and Midstream oil industry especially to partner on a joint venture basis with Nigerian companies under the local content regulations where 10% of all oil business contracts in Nigeria must be awarded to local content (Nigerian companies with the largest shareholding, typically 51% or more). A cash investor may benefit as an equity partner in such a joint venture. Additionally, a technical partner with expertise in exploration and production, oil/gas sector manufacturing or oil and gas services may become a partner of such joint venture for contract award. Due to a short fall of foreign technical experts, subcontract awards from general multinational or subcontract contract holders are readily available for implementation by the joint venture company. With the right facilitating company bringing such a joint venture together and introducing them to the key stakeholders, 30-50% net profit margins are realizable on lucrative multi-million dollar contracts, which are plenteous and are typically ongoing. For more details on how to participate in Joint Ventures in crude oil in Nigeria, Contact our adept team today
With the advent of the new technologies of Fracking (Hydraulic Fracturing) in the upstream industry, increased profits are opened
up from larger recoveries of petroleum, natural gas and other substances for
extraction. Fracking is an essential part to the puzzle of how to invest in oil in the upstream market. Opportunities to secure Billion dollar Marginal Fields of crude oil with significant exploitable reserves previously evaluated by the Oil Prospecting multinational companies under acceptable
sharing ratios for exploration and production. In many instances, Fracking can be the key to elevating profits two fold or more.
One of the high demand infrastructure inadequacies that impinge on the oil industry and virtually every other economic market in Nigeria is lack of good quality, consistent power. As a result, Independent Power Plants (IPP) are the highly sought after solutions especially in remote location onshore oil & gas projects. Most relevant due to its potential for large consistent supply is the Gas turbine IPP. Reasonable bank financing and large NGOs, State Governments and institutional grade Off Takers willing to provide Power Purchase Agreements (PPA) are readily available to activate the IPP. A cash investor or engineering procurement power Company (EPC) can be established in stakeholder joint ventures for IPP projects.
While the above-mentioned crude oil ventures require significant but obtainable capital or technical experience and expertise, marketing/facilitating the sale of energy commodities in Nigeria only requires learning and assimilating the industry market, transaction process, development of buyer and seller contacts for crude oil and the introduction of the two ready willing and able clients to facilitate or broker a sale. With sweat equity and very minimal capital $100-$500, a facilitator can be well on the way to 6 or 7 figure transaction commissions on crude oil energy commodity sales in Nigeria. More details on facilitating are available below.
We cannot talk about the opportunities that profiting from energy sources that Crude oil in Nigeria brings without mentioning the opportunities of Alternative Energy (AE) in the same vein. Environmental pollution due to carbon dioxide and other gases from generators contribute to environmental degradation including the global warming effect. It is inevitable that to be more competitive and capitalize on early entry opportunities, renewable energy technologies as mentioned above must be inculcated even if as Hybrids to the energy industry. Due to major deficiencies in consistent power (creating an opportunity for the investor) in Nigeria, Alternative Energy as a power source if made affordable, will simply be unable to sustain the demand for it caused by the non-competitive power shedding and outages in the country. This creates the opportunity for the investor. Some of the most pragmatic AEs will include clean energies of Solar, Wind, Biomass, Geothermal, Hydroelectric energy. More details can be obtained at Alternative Energy(coming soon).
With the strategic knowledge of how to invest in oil in Nigeria, many investors have been able to obtain much higher returns on their investment in the host country than in their own countries of origin. For a list of oil and gas opportunities in the Nigerian Market and or a market or feasibility study on entering any of the sectors for high yields kindly contact us for more information. Further additional opportunities exist with the potential for high ROI in establishing a crude oil tank farm, receiving Government crude allocations at discounted pricing to store and export crude oil. Further details on Tank Farm investing and facilitating/brokering crude oil sales are available at energy commodities (coming soon).