Marketing and trading

Delivering energy to America

Based primarily in Chicago and Houston, BP’s U.S.  marketing and trading business supplies a wide range of  products that can help reduce greenhouse gas emissions.

For example, BP is one of the largest suppliers of renewable  natural gas (RNG) to the U.S. transportation sector.  Produced entirely from organic waste, RNG — or “biogas” —  can reduce emissions by around 70 percent compared with  gasoline or diesel.

Thanks to its partnership with Clean Energy Fuels, BP now  owns RNG production facilities in Michigan and Tennessee,  along with a share of two RNG plants currently under  construction in Oklahoma and Georgia. 

“BP is committed to supporting the transition to 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 reflects that commitment, as  it helps us accelerate the growth of renewable natural gas  and promote a more sustainable energy mix.”

In California, BP supplies RNG to three transit agencies and  more than 70 compressed natural gas and liquefied natural  gas fueling stations.

The company also participates in California’s carbon  emissions trading market, which has helped the Golden  State become a global leader in addressing the climate  challenge.

In 2017, Energy Risk magazine named BP “Emissions  House of the Year,” praising its carbon emissions trading  expertise in markets from North America to Europe and  China.

A year later, the same magazine recognized BP as “Natural  Gas House of the Year,” citing its ability to supply gas across  global markets.

BP remains the largest marketer of natural gas in North  America, buying and selling more than 20 billion cubic feet  each day. 

The company manages more than 11 billion cubic feet  of transportation capacity and schedules gas flows on  approximately 180 pipelines across North America.

This represents a crucial part of its broader strategy to  advance the energy transition, since gas can dramatically  reduce carbon dioxide emissions in the power sector.  Indeed, the recent growth of natural gas in electricity  generation — displacing other fossil fuels — is the main  reason that America’s energy-related CO2 emissions declined by 14 percent between 2005 and 2017.

“In addition to our gas and power businesses, we are  expanding our natural gas liquids (NGLs) 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.”

Because its marketing and trading team is integrated with  the rest of the company, BP 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 business  serves more than 3,500 customers across North America.

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

It was the first energy company to register as a “swap  dealer” — an entity that participates in certain derivatives  markets — under the Dodd-Frank Act.