Morocco
Morocco is located in North Africa. The capital city of the country is Rabat. Algeria and Mauritania border the state. The country’s climate is quite dry with extreme weather conditions. The population of the country is 35,740,000. According to 2017 reports, the gross domestic product of the country is USD 121.4 billion (Lahsini, 2017). Casablanca is the largest city in the country. Some traditional cultural norms trigger Morocco. Religious associations create an impact on business and trade. However, in the modern business era, the state is growing steadily.
Pressing Need
The sale of crude oil in Morocco is a big need. In Morocco, industries are developing, and the demand for crude oil is increasing. Crude oil is a mixture of different chemical compounds, which can be used in various processes such as Gasoline, heating oil, Jet fuel, propane, and residual fuel oil. It is a fact that Morocco does not have enough resources to extract oil and refine it in several facilities. The government needs to import crude oil to meet production needs and strengthen economic growth.
Morocco is a developing country, as it overwhelms several industrial investments. The production process in both government and private organizations need essential raw materials, which are to be imported from different countries. The dry climate of the country restrains itfrom extractingt material or raw oil components. Thus, it justifies the need for selling crude oil in this country. The state has to meet residential, commercial, and industrial needs, and crude oil is one of the prominent elements. On the other hand, Morocco’s crude oil production is comparatively low as compared to other countries.
The production of Crude oil in Morocco is quite low. On the other hand, the need for crude oil in the industrial sector is still increasing. The country is importing crude oil from different countries at higher prices due to fluctuation in the exchange rate and rising oil prices in the international markets (Eljechtimi, 2018). The need for selling crude oil is in the limelight. Morocco is a potential market with the lower bargaining power of the industrial sector. The industrial area has to lift the economy, and it depends on the availability of oil in organizations.
Morocco contains desert, and therefore, it depicts a unique infrastructure. Gasoline, diesel fuel, and jet fuel are the needs of the country. However, Crude oil is the main component to make all these necessities. Transportation needs are also quite visible, as vehicles need an adequate supply of diesel fuel. Thus, to lift the transportation sector of the country, the sales of crude oil is necessary.
Justification
Morocco is a potential market for investors. The government intends to impose flexible regulations on oil refinery companies to regain growth in this sector. Industries will be willing to buy the crude oil and related components at high prices, which can make this business lucrative for the long run. The business formation or setting a sales structure in the country is easy, which attracts investors. The best thing for the company is to acquire one or two local refineries and start searching and processing the oil to reduce the cost (CTV News, 2018). Crude oil business can be managed through several strategies in Morocco. For Instance, the firm may keep the prices high to be profitable. Conversely, it can meet the needs of Morocco by selling at low prices to get an edge over other international sellers. The industrial sector contains the potential to expand the business, and it also indicates the possible sustainability of the crude oil business.
References
CTV News. (2018, August 20). Nova Scotia, Morocco to team up in search for oil.
Eljechtimi, A. (2018, May 10). Long shutdown casts shadow over sale of Moroccan refinery.
Lahsini, C. (2017, October 18). Morocco’s GDP to Reach USD 121.4 Billion in 2017: African Development Bank.
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