In response to the oil and gas boom. Some Tanzanian entrepreneurs have built their business by offering products and services __ such as human resources , safety equipment, supply, and logistics, accommodation , IT and telecommunication services__to the oil and gas companies such as Maurel et prom, Statoil BG Group etc.
And they reaped a substantial reward,two years prior to declining in the oil prices.
But times are hard now. The low oil price is biting. International Oil companies shut down projects . And there’s Slow down oil and gas activities in Tanzania and beyond. So, Fewer clients . Business is lower. And their profits are squeezed.
The drop in oil prices since June 2014 from over $100 barrel to $ 45 today is hurting many local businesses.
The oil price going down the drain and this present one of the worst oil price downturn in the recent history.
The harsh truth is that nobody knows exactly when the price picks up again. But most economists agree that the road to recovery will be longer and hard.
Feeling down because of the bad oil prices? Don’t panic . Oil price downturn comes and go. And that’s the part of the petroleum industry cycle.
Seriously, I know you love your business. And you don’t want to go back being restricted with month salary again.
So, how do local entrepreneurs keep their business alive during the low oil price? How do you survive the low oil prices? How do you make money?
Read on to find how?
Diversifying Business’s clients
The bad price has changed the entire oil and gas market at a frenetic pace. To reap incredible result, should respond to the market condition and service other industries.
If you were recruiting local workforce for oil and gas sector.
You can offer the same services to the telecommunication, marine perhaps aviation industries.
Flexibility is the mark of successful entrepreneurs. never be rigid.
Fix problems in the downstream segment of the industry
Most Tanzanians investors have been offering products and services to the upstream sector of the industry for some time now. Why? because they had all money.
But that’s not for you. Upstream operators have nothing to do with your products or services now.
The whole east Africa region possesses only two oil rigs. So what business will listen to your products or solution?
To stay in the business line, then solve the problem in the downstream sector__ Downstream operators are making huge cash access benefit weak oil prices.
To stand out in the recent oil and gas market, you products or services must fix an issue in the downstream.
Downstream operators represent things like transportation, marketing, and selling of oil and gas market. So oil pipeline are booming now
Positive attitude is the critical to survive
In the oil price downturn, people loses jobs. People create jobs. Companies make a huge fortune. Companies go into bankrupt. All in the oil price slump.
So spending the whole day wondering how the prices affecting your business. You’re not helping yourself. Instead .you diminish your creativity and productivity. You must have a positive mindset.
The right attitude helps you to think on how to do to come out ahead. And enables you to fight, work hard and come up with awesome ideas that bring incredible result.
See the weak prices as opportunities and not a problem. In that manner, You’ll be amazing with the positive result you get.
Surviving is all up to You
Are you going to pay attention and put to use information given to you in this article or you’re going out there and winning how the business is hard in the period of low oil prices.? Surviving in the current atmosphere is easier than you think. Go out there and make It happen. You’ll thank me later.
Petroleum Geoscience Graduate
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