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Marketing and trading

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
Trading floor with text overlay

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% 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. 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.
Carey MendesHead of oil, products and low carbon trading

 

 

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% 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.