UNDERSTAND CRUDE OIL BUSINESS

Converting crude oil deal.

By: Kailashi Dr Rajeev Kumar
Chairman, (EBS) Entrepreneurship Business School of e-Learning and Training Class.

Actual of crude oil industry at present:-
End refinery/country either producing or export is seller and importing or consume is buyer. They are actual end seller and end buyer. They are refining in multimillion barrel volume. Obviously they are multibillion dollar turnover companies owned by world renowned corporate group or government only. Obviously they are listed company at their stock exchange with their shares. All share-holders are regularly updated with company financial statements. This financial with defined turnover, balance sheets, profit and loss accounts etc. are published from daily news and their websites in public. Hence the name, proof of product and proof of fund are all disclosed in public. Any-one can simply locate complete financial and annual mobility of goods in such public companies.

All further information is processed through the contact disclosed to public and up-front desk of reception in discipline and hierarchy. Collecting any unexpected, valuable or confidential information of these companies under strict processed hierarchy is next to impossible. That may either exception or piracy or error or an unethical event only. Culprits are charged criminal of violating laws. Any or all responses by the experts at different level are perfectly balanced according to actual value of enquiry. There is very less chance to obtain the extra advantage at all. Even a real corporate is also approaching them through the same route, acknowledging their original and communicating via public address to prove and negotiate. They are filtered accordingly and properly replied. Any-one can approach at this route and receive a suitable reply. Fact is always judged by skilled professionals. Substandard are still trying his unfruitful luck, in hope of mercy.

Sale and purchase at these buyer and seller refineries are operated by defined department and/or appointed channels in loop. They are professionally skilled and champion of that field. Appointment of an external channel for liaison or mandate ship require strict deserving eligibility; such as: last three year strong performance track record in same field with turnover above certain amount, company net wealth above a particular amount and fulfilling other conditions. For example NNPC require annual turn-over of minimum $100 million per year in last three year business of same field and company net wealth of minimum $40 million with commitment to fulfil the rest of conditions in agreement may only eligible to obtain the allocation allotted for quarterly tenure in a financial year.

There are resellers they book the allocation from either of end seller refinery through secondary contract direct at refinery export department or valid, legal, appointed mandate/ allocation holder/ end buyer refinery with excess stock throughout a running contract. They release purchase order, LOI and ICPO to receive a SCO or FCO and agreed to prove his proof of fund by bank swift confirmation and BCL in due respect of procuring allocation. They are further supplying this allocation to the next buyer preferably an end refinery or a reseller against profit from the margin of 50% amount closed for seller side from the Platts/Urals price discount. Such a trader/reseller is ready to provide 2% PB in confirmation of his ability. They aggressively search the buyer from their team of business associates and facilitators at open market, market space and where so ever; to sale out his allocation in due time of agreement before termination/ penalty/ black listed.

Online facilitators start fishing on receipt of similar enquiry. They are distributing documents and publishing advertisement on b2b sites in their own words. These collapse among each other and create complexity. All of them are maintaining some suspense and try to be protected in loop. A real allocation is often missed before it reaches to end. It is tragedy of facilitators that they always overcommit near each other and challenge some extra in him than the next man. They neither disclose the real chain and members in chain from the origin of business. That is only reason of complexity. In other side they always commit themselves as seller, then seller mandate, then sub mandate, then next to mandate, then my friend is direct to mandate and so on. Regular discussion does already involve time or expiry of original business. Then they take time in exchanging LOI, FCO, BCL, NCNDIMFPA and Draft contract etc. These may finally take adequate time of almost the original business would have passed out. This sounds nonsense and proves zero result to them. They look busy for nothing. They are killing their time, cheating their own and fishing with documents. Gradually in frustration they turn to manipulation of information and documents also. They use old documents with manipulation to over commit in advance for an effective presentation at fresh or future business. They are finally becoming a criminal at laws and mentally sick in medical term. They are non-other than addict that destroy his carrier in doubt of short cut to billionaire.

After all such confusion, the real business of crude from above details is clear that please don’t expect many documents of LOI, BCL, NCND, FCO, Draft contract etc. if fortunate to receive an opportunity serving an end buyer or end seller mandate direct/indirect. Just be with them in graceful manner and serve from the level best before the opportunity passes on credit to others. The documentations of LOI, BCL, FCO and NCNDIMFPA etc. are remains formality to them once the appointment of end buyer or end seller are fixed at refinery office with refinery director. Do your duty and enjoy remuneration from the master fee agreement with seller mandate only or as directed under NCNDIMFPA clause in final agreement.

Second remarkable thing is dealing with reseller. Please maintain the discipline and be strict to work only after disclosure of end refinery in business, the valid legal appointed mandate of that refinery and the members in chain at master NCNDA with cc to all attached mandate ship appointment letter by issuing refinery with original email of mandate; with permission of appointment can be verified by an end refinery interested in proposed business. Business output is confirmed at this practice. Response according to the nature and symptom of message from the business origin source weather it is a business originated from end refinery or from reseller.

We must need the required tools for a standard facilitator ship. These are:
- Country wise list of world refineries with daily refining volumes, address and website.
- Volume wise list of countries importing/consuming/exporting/producing crude oil/gas.
- Name and address of valid legal appointed mandate/allocation holders of deferent buyer as well as seller refineries from their research and experience from internet surfing of refineries, mandate appointment by refineries, allocation allotment by refineries with separate name, loading ports, pipelines, spot allocation, vessel loaded at ports, charter party agreements, similar side news matters searching at Google for crude oil refinery and mandate data preparation purpose.
- Prepare the list and data of fair and skilled professional facilitators in contact from history and shortlist the most approachable persons close to mandate of end refineries/reseller.
While working as facilitator. It is total consultancy work. Just remember that you are selling one and only information. Selling wrong information may become worst experience of jail and blacklisted. Selling complete information may leave you empty hand. Selling half information may kill your time. Selling zero information is not a solution for life. “Business is Darvinism. Only fittest survives. Benchmark every day.” So just be champion of your field with regular challenges, ethical practice, skilled presentation, prompt duty, consistent profession, smart information, intelligent replies, total honest, balanced judgement and last but only mandatory skill in personality that reflect attractive impression of endless key information retained in you for next discussion.

Lecture contents by 'Kailashi Dr Rajeev Kumar'. Skype- rtycoon, email/facebook- rtycoon@gmail.com, Mobile/whatsapp- +919654909233, efax- +17029773175, www.ebsindia.jimdo.com.

I am charging to deliver my lecture at university campus, conserned education department/journal/publication, provide consultancy to crude oil refineries/corporates/government organizations/mandates. Please fix your appointment at given email or mobile number.

A REVIEW ON CURRENT IMPORTANT AND URGENT SUBJECT DEVOTED TO THE US PRESIDENT, CONSERNED PERSON/ORGANIZATION TO MEAN, GROW AND LET THE OTHER GROW



FUNDAMENTAL CAUSE OF RECESSION 2008 IN WORLD MARKET

- We may categorize some countries like India, Brazil, Peru, Russia and other developing countries in category A selling iron ore, manganese, bauxite, alumina and other mines, minerals and raw materials to countries in category AA like China, South Korea, Saudi Arabia and other countries. They are processing the raw materials in finished products and pallets. These finished products and pallets are further imported by developed countries in category AAA like USA, UK, Japan, Germany, Australia etc. to produce motor cars, home appliances, technical items, real estate, big infrastructures etc. for further sales and distribution to consumers across the world.
- Citizen at unorganized industry investment system of governments from countries in category A are missing the possible job opportunities at his motherland. They are depended on overseas job at well-developed industry investment structure of countries in category AAA. Government schemes by countries in category AA are causing total employment to citizen at domestic industries, mills, and heavy plants.
- Countries in category AAA develops a system with plaintive of basic infrastructure and productive industry. Infrastructures prove it strong business city for a shelter and attraction of tourism and investment in housing by millionaires from the world. It also retains the cash of salary paid to the overseas employees working on job visa at these foreign lands. Employees from countries in category A become the consumer of such infrastructure. Thus there are great demands of this infrastructure. Motor cars, technical goods and other products of Countries in category AAA are distributed to the world market including consumers at countries in category A. Turned up capitalist from the sale of raw material, mines and minerals in country A are also investing at overseas infrastructure with hope of regular growing economy of this infrastructure at Country AAA. Liquid cash of country A are shifting to developed countries in category AAA by this method. Cash of raw material owners in country A are becoming one half for the same product when that reaches to country AA including additional coast of transportation and others. That may further become one fourth with coast on processing in pallets and become one eighth when supplied to a motor car manufacturer, Construction Company of big infrastructures and other importers from countries in category AAA. That would further equivalent to one sixteenth or lesser than the original price of raw material used at construction of these motor cars or houses. This fraction is major factor to express the fundamental reason of economy gap of countries. Countries A may control this depreciation by adopting planned steps in right direction. Countries in category AAA are obviously encouraged for multiple projects and investment on same strategy. Obviously they invent and use the advance technologies for easy, qualitative, quantitative and economic production. These depict them as advance breeds in race of adopting high tech life style. They develop new models and high-tech models of luxurious cars, home appliances and other goods. Others pay the multiple and higher value to consume those cars, home appliances, dress, designs and apartments etc.

Reverse cycle of non-cooperation movement by country in category A; to avoid consumption of high-tech consumer goods and investment on advance life styles in fascination towards country in category AAA.
- Country A like India and other developing countries has learned the lesson from globalization and appreciably beating developed countries in competition. They have searched the key formula, to reverse the cycle and overcome the gap of developing and develop. They stopped dependency over imported high-tech products of developed countries. They improved domestic system in adequate and surplus production than domestic need. Hence it damaged the complete industrial system of developed nations in category AAA resulting recession in world economy. Instead of brain drain and overseas recruitment now these developed countries are suffering from problems like: unemployment, uncontrolled falling economy to retain investors, day to day industry closing, continuous bankruptcy in banking sector, decreasing liquidity reserve, missing foreign income, decreasing export of finished products, decreasing import of raw material or processed pallets for industrial use and increasing dependency on imported consumable goods etc. Experienced migrated workers are returning back with similar domestic jobs. Countries A are industrialized to employ their man power for surplus production of need based and hi tech products; supplying to consumers of developed nation. One side the developed nations are suffering with falling demand, crashing value, unemployment, break down industries and withdrawing investors simultaneously in second part of the world, developing nations are taken charge to fill up this gap. They become the attraction of investors. Industry systems have grown up at planned layers of demand generation and supply management. Reverse circumstance depict this replaced economy in a successful example of see saw. Developing country in category A are now minimum and somehow reverse in nature and towards intension to export raw material, mine and mineral and stopped overseas investment or dependency on import of processed consumer goods at globalization. It affects the mills and industries of countries like China in category AA. They suffer to pay high price on import of raw material for their mills and beaten to sale the processed product at competitive lower price due to appearance of producers in country A as well as decreasing demands under falling economy of the regular consumer market in country like USA, UK, Germany in category AAA. Import of raw material from country A is obviously closed and option of procuring these raw materials from other country has also become expensive by the emerging demands of raw materials from increasing mills in countries A.
- Here major effected countries at changing economy cycle of recession in discussed three categories are countries in category A is India, Brazil, Russia etc. Category AA is China, South Korea, Saudi Arab etc. And category AAA is USA, Germany, UK, Japan etc.

Data of energy consumption indicates that we are still consuming almost 5th part of energy consumed by China. Energy is ghost. More you increase, more it melts. China has big population like India. Consider consumer wise; ratio of population and energy consumption is still differ by long proportion. Consumption of energy may either prove productive; else un-necessary and uncontrolled use of energy is destructive. This energy consumption by China is productive. That's why the GDP and economic growth of China will continue until; consumption of energy will continue. This is why intentionally controlled and planned use of energy consumption in china causes of importing maximum mining ores and energy resources. Energy products burned in processing of mining ores in to pallets and finished product. This is also a root cause of industrial development, R&D, employments in country and finally economic growth of country. I like to remind the honorable Prime Minister of India, Mr Narendra Modi and attention of his team of consultants to focus at this key of overall economic development. Yes The second part of this key for India will also be a historic. I need to get their attention on figure of energy consumption. We want this figure to be maintained. But production of energy should also be changed by effect of social movements. India was messenger of peace for human life and social life. We preserve petroleum resources, hydro resources, coal resources and other resources of energy. We send message to world; to say no to these petroleum, coal, hydro etc resource consumption for production of energy. We decrease consumption of these resources and increase dependency on wind, solar and mechanical resources to produce energy. Finally use the maximum consumption of energy inspired by China. That will give us great satisfaction of becoming great economy of world with protecting earth reserve and solving global warming problems to balance the eco-system.
BY: DR RAJEEV KUMAR Mobile/ whatsapp 00919654909233 email/ facebook rtycoon@gmail.com