Oil Investment: How to Maximize Your Chances of Breaking In

Oil Investment: How to Maximize Your Chances of Breaking In

Anas Bouargane 26/06/2020 4
Oil Investment: How to Maximize Your Chances of Breaking In

The oil industry is what makes the world’s economy running.

Today, there isn’t any sign of this fact changing in the near future. Petroleum remains to be very in demand as it presents a multitude of uses in many different industries in every country all over the world. It is not just used as a lubricant but it is also one of the most commonly used fuel for many plastics manufacturing companies. 

Oil Investment: How to Maximize Your Chances of Breaking In

Investors are aware of the fact that oil investments in limited partnerships may pay off big. When a single well is capable of generating oil that is many times its costs, then chances are high that such can pay dividends well for many more years to come. However, oil & gas investment banking is quite more complicated than many people think. You have to possess enough knowledge about the industry for you to be able to know how to navigate in this type of investment. The good thing about it is that your exposure to oil investment can largely help insulate your portfolio which is helpful against economic slowdowns. If you plan to engage in oil investment, read further to know how you can possibly increase your chances of breaking in. 

Earn a Degree in Petroleum Engineering

Petroleum engineers play a significant role in shaping the kind of society that we all are enjoying right now. They made it possible through the provision of advanced technology that ensures the supply and demand of oil are fully met not just in the national but at the global level as well. Petroleum engineering education exposes individuals to a wide range of specializations that are necessary to keep the industry running at full throttle. Examples of these specializations may include drilling engineering, reservoir engineering, and production engineering. 

For example, if you choose to specialize in reservoir engineering, you will be able to learn to figure out the oil in place and then make certain plans as to what type of technology can be used so that oil production will become possible given the economic environment. If you want to take up drilling engineering, then you will be able to learn how to design and calculate all the important parameters to ensure that oil drilling can be done with minimal cost. 

If you are a drilling engineer, one of your major tasks would be to make sure that the entire process of drilling is safe, not just for all the workforce involved but it should also make use of environmentally friendly methods. Once done, the reproduction engineer now takes over as he brings hydrocarbon to the surface and sees to it that such an operation will be carried out as efficiently as possible. It is also the job of a production engineer to make analysis, accurate interpretation, and optimization of the entire performance of every individual oil well. 

With all this knowledge about the reproduction of oil, it will now become easier for you to understand specific jargon pertaining to the oil production industry. In turn, as you delve deeper into the field of oil investment, you will no longer be starting with zero knowledge about the entire oil industry and its key players. Thus, improving your chance of breaking in. 

Oil Investment: How to Maximize Your Chances of Breaking In

Take a Class About Natural Resources

The study about natural resources may involve a very broad scope. It could cover anything that entails mining or the collection of a resource in raw form. From their raw form, these natural resources will have to undergo further processing for them to finally reach the state where they can be sold for human usage or consumption. If you major in natural resources, then it would be easier for you to engage in natural resource investment opportunities where you could also invest in metals, minerals, oil, and gas. For any natural resource that needs to go through the process of mining or collecting in raw form, a natural resource investor would find his way to buy-in. 

Other individuals also opt to study natural resource economics to better understand the importance of natural resources in the country’s sustainable economy. Natural resource economists play a role in the development of sustainable methods that ensure that there will be enough resources available for the generations to come. 

If you earned a degree in petroleum engineering and have enough background in natural resources, obtaining a three-month internship would already be enough to set you apart from other individuals who have no background in these fields but would still want to engage in oil investment. 

The oil and gas industry can be so volatile at times. Before you give in to any investment opportunities, make sure you have a healthy level of risk tolerance. Be honest about determining just how much risk you are capable of handling. You also need to consider liquidity. You have to explore all the possibilities and consequences before finally saying yes to any limited partnership routes. Although investing in oil is no doubt such a lucrative move, its volatility in nature could also increase your chances of losing. Learn as much as you can and be a wise investor.

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  • Lewis McKernan

    Oil prices have collapsed in 2020 following the outbreak of the corona pandemic.

  • Graham Leach

    The world is upside down.

  • Danny Gallagher

    Great article !

  • Matthew Jones

    Concise and helpful advice.

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Anas Bouargane

Business Expert

Anas is the founder of CEF Académie, a platform that provides guidance and support for those willing to study in France. He previously interned at AlphaSense. Anas holds a bachelor degree in applied economics from the University Paris Sud.


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