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Global structured products

Structured products – showing the world the way forward in energy price risk management
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Global structured products
Global structured products

Our award-winning team of over 40 across the globe manages exposure to energy prices with innovation and flexibility.

In fact, our team has the expertise in energy price risk management, financial trading and physical markets to develop creative solutions tailored to your specific needs. That’s why our customers are varied and numerous – from oil and gas producers, refiners, and importers to utilities, airlines, shipping, mining and industrial companies. Our customers also include banks, hedgefunds and private equity firms.

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

Risk management approach
Risk management capabilities
Risk management approach

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 proven risk management approach to help our customers design a risk management strategy 

 

BP’s energy risk management framework

 

A strong risk management strategy is based on an in-depth assessment of the business and the market dynamics associated with the exposures.

  1. Identify and quantify risk. The first step to managing risk is identifying it. What risks is your company exposed to? Risk can come from market factors (supply, demand, liquidity, etc.), price volatility, credit availability, internal physical operations, interest rate fluctuations, changes to the regulatory landscape, and more.
  2. Assess your risk profile. Defining your risk tolerance level and overall objectives. Are you looking for budget certainty? Stable cash flow? Protection of product margins? Dampened volatility? Avoidance of catastrophe? What level of risk is your organization comfortable with?
  3. Develop and execute a hedging strategy and compliance plan. With a clear understanding of your risks and objectives, we can create and, subsequently, execute a custom hedging strategy that will fulfill your risk management goals. We are able to provide a wide variety of products, ranging from simple swaps and options to long-term financial hedges and exotic options. Find out more about our risk management capabilities.
  4. Create benchmarks and review. Market dynamics never remain the same. As the key factors affecting your business change so do your risks. It’s critical to create risk benchmarks and regularly assess your risk profile to determine if strategies should be adapted. We work with you to consistently review your risk management goals and adapt your hedging strategies as needed.

 

 

 

 

Risk management capabilities

Risk management capabilities

Recognized as an industry leader with more than 15 years of experience in risk management for third parties, we leverage our physical and financial trading and marketing expertise to understand your risk management goals and deliver creative solutions tailored to your needs.

 

Commodities

 

We have expertise structuring hedging products for a variety of commodities including, but not limited to:

  • Natural gas
  • Natural gas liquds (NGL)
  • Crude (Brent, WTI, etc.)
  • Diesel
  • Heating oil
  • Gasoil
  • Gasoline
  • Jet fuel
  • Chemicals

 

Customized solutions

As the first oil and gas major to register as a swap dealer under the US Dodd-Frank Act, 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 & put)
  • Options (vanilla & 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.)

Whether you’re motivated by investor requirements or the need to ensure a stable cash flow, we have the flexibility, the tools and the knowledge to meet your goals.

 

 

 

 

Our reach

Americas

With offices in 22 locations 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. In fact, we were the first oil and gas major to register as a swap dealer.*

 

*BP Energy Company (BPEC) became a provisionally-registered swap dealer on July 29, 2013
 

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 over 20 years. With access to BP’s expert team of financial and physical traders, our team is uniquely positioned to help you manage your oil and gas price exposure. 

 

Eastern Hemisphere

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