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Structured solutions

We are showing the world the way forward in energy price risk management

Our award-winning global team manages exposure to energy prices with innovation and flexibility. Integrity and respect for markets shapes all decisions we make in bp trading and shipping. 

 

Our team has the expertise in energy price risk management, financial trading and physical markets to develop a range of solutions. Our customers are diverse and numerous – from oil and gas producers, refiners and importers, to utilities, airlines, shipping, mining and industrial companies. Our customers also include banks, hedge funds and private equity firms.

 

We do business in most energy commodities and markets worldwide, 24 hours a day, in numerous currencies. 

Risk management approach

As a physical asset owner, we have a significant global exposure to most energy commodities. Through decades of experience, we have honed our capabilities in managing the risks associated with a global, multi-commodity physical business. We follow a thorough risk management approach to help our customers design a bespoke risk management strategy.

 

bp’s energy risk management framework  

Commodities

Our team has expertise structuring hedging products for a variety of commodities including, but not limited to:

  • Natural gas 
  • Natural gas liquids (NGLs) 
  • Crude (brent, WTI, etc.) 
  • Diesel 
  • Heating oil 
  • Gasoil 
  • Gasoline 
  • Jet fuel 
  • Chemicals 
  • Low carbon solutions 
  • Power  
Customized solutions

As the first oil and gas major to register as a swap dealer under the US Dodd-Frank Act 1, we offer a variety physical and financial risk management solutions including, but not limited to:

  • Caps, floors, collars 
  • Swaps (basis, index, swing, etc.) 
  • Swaption (call and put) 
  • Options (vanilla and tailored) 
  • Flexible risk-reducing strategies 
  • Tiered volume restructure 
Clients

We manage risk for a diverse customer base. 

  • Oil and gas producers 
  • Airlines 
  • Mining 
  • Agriculture 
  • Refiners 
  • Municipalities 
  • Resellers 
  • Governments 
  • National oil companies 
  • Transportation 
  • Petrochemicals 
  • Power producers and consumers 
  • Shipping 
  • Banks 
  • Hedge funds 
  • Trading 
  • Private equity firms 
  • Other industrials (chemicals, steel, paper, etc.) 

Our reach 

Americas

With offices covering the US, Canada, Mexico and Latin America, we’re a recognized industry leader in the region. We have been providing energy price risk management for third parties since 1989.  

 

Europe

Our London-based team has provided energy price risk management products to customers across a wide range of sectors in Europe and Africa for more than 20 years. With access to bp’s expert team of financial and physical traders, our team is well-positioned to help you manage your oil and gas price exposure.  

 

Eastern Hemisphere

Our deep understanding of both market sectors and geographies allows us to offer customized solutions, structured deals and physical energy to our clients in more than 30 jurisdictions from the east coast of Africa to the Pacific Islands.