Analytics disciplines

Market analysis

The market analysis discipline considers both short and long term time horizons across a highly diverse set of commodity lines and geographies. Analysts reside in all of BP’s major trading floor locations in North America, Asia and Europe. Short term market analytics seeks to identify and understand fundamental drivers that influence market prices up to two years forward. Analysts are often co-located on the trading desks, and employ models of supply and demand, physical storage, weather, shipping and power generation, coupled with real-time data feeds, to provide actionable commercial insights to the front-line trading teams.

Long term analytics studies themes that may play out in the energy and commodities markets up to ten years forward. These may include rapidly evolving markets, new extractive technologies, global environmental policy, regulatory changes, renewables and energy storage. Working closely with the BP Upstream and Downstream segments, and Group economics, this analysis frequently informs group investment decisions, as well as influencing the strategic agenda of the company.

Members of the team possess diverse backgrounds, including economics, natural sciences, mathematics, engineering and humanities.

Structuring

Structuring works closely with the trading, origination and commercial development teams to value complex deals and physical assets. Here the focus is on modelling key drivers of financial value, performing comprehensive scenario analysis and designing cost-efficient hedging strategies. Market liquidity and contractual terms often require analysts to use advanced modelling skills and careful judgment to determine the value of a commercial transaction. By necessity they work closely with the risk, accounting, compliance and legal teams, to maximize value to BP and to mitigate sources of contractual risk. Structuring resource is present in all of BP’s major trading locations and works across commodity-lines.

Members of the team typically possess technical backgrounds in mathematics, engineering and finance.

Quantitative analytics

The team comprises analysts located in BP’s London and Houston-based commercial centres. Option pricing, statistical analysis, hedging strategies and real option valuations of physical assets or contractual terms are the main focus. The team maintains and develops a proprietary derivatives valuation library, and draws heavily from the domains of mathematical finance and optimization theory to provide industry leading analytics in support of the commercial agendas across the globe. Determining the option premium and Greeks of power generation units, natural gas storage assets and sophisticated risk management instruments are current areas of work. Technical innovations developed in other asset classes, including rates, foreign exchange and equities, are often harnessed to provide novel solutions in an energy and commodities context. The team works in partnership with the commercial, risk and technology teams to put in-place robust, fit-for-purpose systems and processes for the controlled and disciplined trading of complex non-linear risk.

Members of the team hold advanced degrees in mathematical finance, physics, mathematics and computational mathematics.

Data strategists

The team will soon have analysts in each of our main business locations, including London, Chicago, Houston, New York and Singapore. In close collaboration with traders and market analysts the data strategists utilize machine learning, artificial intelligence and advanced statistical methods to identify patterns in large data sets that might be monetized by the front office. Employing public domain and BP proprietary data sets, the team delivers tools and decision analytics to advantage our commercial teams.

The data strategists also partner with the technology teams to engineer a robust systems infrastructure for the rapid processing of massive data sets, as well as for co-developing advanced visualization tools to aid the communication of complex analysis.

Members of the team hold advanced degrees in mathematical finance, physics, mathematics and engineering.