Marketing and trading

Delivering energy to America

BP’s marketing and trading business reliably delivers energy supplies around the world, while offering financial services that help customers guard against fluctuations in energy prices. It works with a wide range of companies, as well as other BP businesses, to buy, sell and transport commodities such as natural gas, natural gas liquids (NGLs), power, crude oil, chemicals, sulphur and refined products.

Because the marketing and trading team is integrated with the rest of BP, the company can maximize the value of its energy resources. For example, the trading group buys crude oil for BP’s refineries and helps them maintain their product inventory levels.

In an average year, BP’s marketing and trading team completes around 1.2 million transactions in the U.S. and serves about 3,500 customers across North America. The company’s two major U.S. trading hubs are located in Houston and Chicago, and its North American marketing and trading business also has offices in Canada and Mexico.

BP is the No. 1 marketer of natural gas in North America, selling enough to meet the average daily needs of every home and commercial building in the United States.
“In addition to our gas and power businesses, we are expanding our natural gas liquids business both domestically and globally,” says Orlando Alvarez, head of BP’s gas, NGLs, and power marketing and trading business in Houston. “We have deep expertise across the value chain — including in pipelines, railcars and ships — which allows us to deliver to multiple destinations for our U.S. customers.”

Beyond oil and gas, BP provides customers with access to renewable energy products. For example, the company has been active in carbon emissions trading markets since their inception, including the one that took effect in California in 2013. Energy Risk magazine named BP the Emissions House of the Year in 2017, recognizing its carbon emissions trading expertise in markets from North America to Europe and China.

BP also is the largest supplier of renewable natural gas (RNG) to the U.S. transportation sector.

In 2017, the company acquired Clean Energy’s RNG production facilities, including existing plants in Michigan and Tennessee, along with Clean Energy’s share of two plants currently under construction in Oklahoma and Georgia. Produced entirely from organic waste, RNG fuel is estimated to result in up to 70 percent lower greenhouse gas emissions than from equivalent gasoline or diesel-fueled vehicles.

“BP is committed to helping drive the transition toward a lower-carbon energy future,” says Carey Mendes, head of BP’s oil, products and low-carbon trading business in Chicago. “Our partnership with Clean Energy is part of that commitment, as it enables us to participate in the growth of renewable natural gas and support a more sustainable energy mix in the United States.”

For its industrial customers — including oil and gas producers, refineries, petrochemical plants and power generators — BP provides hedging products and other risk management services that support capital investments and promote long-term economic growth.1

1 BP Energy Company is the entity that is provisionally registered under the Dodd-Frank Act.