Factors That Hinder Prosperity in Crude Oil Business

Statistics shows that over one million people world wide are trying to facilitate Crude Oil deals World Wide and only 1% success rate has been recorded; the reason for the very low success rate is not far fetched. So many factors hinder the successful completion of facilitating Crude Oil deals and these factors are not far fetched. Greed, insincerity, long chains of people, lack of information is factors that can hinder the success rate of facilitating a Crude Oil deal.

Bonny Light Crude Oil is the most desired of all specs of Crude Oil because of its low sulphur content which emits low carbon after refining; all most all Refineries and crude oil buyers cannot but help to purchase this commodity. The problem militating against sealing a deal is that most people involved in this business are being motivated by greed to make millions of money at a stretch; people no longer bother about the long term Business relationship that would be initiated after the first successful transaction. They become very myopic because of the huge amount of money that is involved and they are overwhelmed at the mention of this sum. I would give you a typical scenario.

Jack 35 has been into the Oil and Gas Industry for over 5 years; meaning he started his dealings in this sector 5 years ago. He has been near completion of deals but at the tail end, things fall apart. Jack never had a direct relationship with a seller or mandate. He knew a group of people who claim to know some other group of people who know a facilitator to the seller. Obviously, the strings linking to the seller or mandate is a very long one and as such it became very difficult for him to seal a deal even though he knew a couple of people who are facilitators to the buyer. Now the problem always arises before the Sales and Purchase Agreement is being signed; there is always a whole lot of argument as to who takes what amount and why he should take such an amount. They keep arguing about money sharing because there are series of people involved. This take a lot of time and nobody likes to waste his time; the interested buyer representative looses interest because nothing is forth coming and he moves on.

This keeps happening over and over again making it frustrating for him. If only he and the groups involved come to an understanding that after the first deal they would keep having more deals and more money; they don’t think that way, they just want to get a Lion share from the first deal like there is no other deal coming their way. They fail to understand the simple fact that if you are lucky enough to get a contract for 12 months with possible rolls of extension, it is almost a life long thing.

I read of the story of a young man who saw an AD in a newspaper, the AD requested for suppliers of crude oil, he quickly used his initiative and started looking for a supplier. He was lucky to have come in contact with a direct supplier, they came to an understanding and after many deliberations, they concluded that he would be making $75,000 for a period of 5 years. Whao! Isn’t that a lot of money? If he were the greedy type, probably he might have wanted a lump sum at a go and he wouldn’t have had the opportunity to earn money for a period of time. Maybe if he had the lump sum, he might have squandered the whole lot by now.

“The love of money is the root of all evil”, I am sure you are familiar with that quote. That deduction is very correct in all ramification; most people paint pictures of the kind of life they would live when they get such huge sums of money, even when the money is not readily at their disposal. This single thought leads to lies and deception in the Oil and Gas Business facilitation; because of the love of money, they become liars, they try to cheat, they become insincere with even themselves. This serves as a deterrent to successfully facilitate a deal; nobody wants to deal with a dishonest person, at the slight perception of your being deceptive, nobody wants to transact business with you anymore. You have to be very careful and sincere in transactions of such magnitude else you loose out forever. Image is very important in this business, if you can represent yourself sincerely and honestly, be sure to have a long lasting deal.