Jumping into New Crude Oil Business

[Kishan Barai]

How to start Crude Oil Import Business?

Almost every product you use in your daily life is made from crude including fuel. Reliance, Essar & other industries came on top because of Crude Business. 

Now, How can we start crude oil business?

Before startup, we must understand and analyze crude oil & who purchases it & how/where to buy ?. Crude Oils are mainly imported from Middle East, North Sea, North Africa, West Africa, Latin America & North America. 

Crude Oil Import --->>> You (Importer) ---->>> Refinery ---->>>> Industrial raw material --->>>> Customer 

In most cases, at startup crude oil importers provide that to petroleum crude oil refinery, that crude is processed and products like gasoline (petrol), kerosene, asphalt (used for road construction), granules ( for plastic making industry), etc. are made.  

Following are the characteristics of Crude Oil which are mainly required by refinery 

Carbon: 84 to 87%

Hydrogen: 11 to 14%

Sulpher: 0.4 to 6%

Oxygen: 0.1 to 0.5%

Nitrogen: 0.1 to 1.5%

Metal: 50 to 150 PPM [Parts Per Million]

Generally, refinery does not like more proportion of Oxygen, Nitrogen, Metal in Crude Oil as it increases weight & shoots up the processing cost of crude so lessen the amount of these & refinery are ready to pay a good price to the importer

Product with only Carbon & Hydrogen is the dream of most refiners 

Lighter the crude & sweet taste of sulphur should be your target in sourcing the crude oil because crude oil only with Carbon & Hydrogen is practically impossible to source. So make sure you are done with SGS Lab test formalities before import. 

Many big refinery import curde by themselves but there are many small & medium refinery who are looking / Opt for the probable importer to invest & source 

This business needs huge investment; generally I come up with a plan to help small importers & exporters but it was a demand of many of my clients to come up with big plans which needs big investment & big profits in import export business. 

Yes investment is big but profit margin is such that you can't imagine. 

Good Luck,

I love to write the practical articles which are not available on Google & it really takes painstaking efforts to collect the practical information from market to support you, so looking forward to see your feedback and suggestions/queries  

Feel free to connect with me via Whatsapp or email for any help regarding export-import business. 

Cordially Yours, 

Kishan Barai

Discussions to this article

[Kishan Barai]

Testing the Crude for Import. https://ibb.co/kccvWJ

[Kishan Barai]

Check out @baraioverseas’s Tweet: https://twitter.com/baraioverseas/status/995953156273008642?s=08

[YAGAY and SUN]

In our view, Due to heavy infrastructure cost & investment etc. individual are barred to jump into this business.

[Kishan Barai]

True, I mentioned in my article it needs huge investment, but nothing is impossible.

[YAGAY and SUN]

What's about the consents and permissions and the big question is that whether Government would allow individuals to enter in this business?

[Kishan Barai]

We all have firms to import, we are never individuals. Yes, firms are allowed to import.