BP GDP Path
Hi everyone - I have an offer from BP's GDP and I am curious about the pay and exits(?). I have read on here that it is a top program, but tbh I don't know a single thing about any of the other shops or even BP really. Am I limited to Houston after the 3 years of the GDP or are there exits in NYC or somewhere else? I know that the pay in the GDP isn't great, but how does it go from there? I am very unsure and any insights that you are willing to share would be very appreciated!
Definitely take the job, congrats.
After the 3 year program, you can get a job at most any firm, this includes NYC and Chicago.
The pay often doesn’t get better after the program unless you get a trading seat. It’s rare to get a seat right away because everyone in the industry wants it.
Does the pay improve significantly once you secure a trader seat either at BP or at other commodity houses?
Yea traders can make a lot more. Base is low 6 figures but the bonus can hit 7 figures if you're good.
why does a prospect in IB M&A want to go into BP Trading? This just sounds like you don't know what you want to do and just want a brand name on the resume
It's a long story but to a certain degree you're right with the brand name part sadly
makes no sense for banking kids to take trading related jobs and then flounder to go into banking/PE 3 years later. If I could, I would love to short your trading career
I think you missed the point of this thread.
Lol how does one even get an offer from this program knowing so little about the business...I was under the impression these were competitive progs to get into lol...hiring team out for lunch ir what?
Don’t take the job if you don’t want to become a trader, you’ll be miserable and the exit opps won’t be of interest to you
I know a good amount about commodities and trading, but know very little about different firms or the long term career. Had an internship and proved myself enough to be near the top but was coming here for advice beyond the day to day. I can change over my username listing from m&a prospect to trading if that would help- I've had this account for years
Probably good idea to take offer and go from there, regardless of LT interest.
It's a good seat. I only say good because it is BP in Houston which means gas which I don't find nearly as interesting as crude/products, but probably has more longevity.
I don't think you're "stuck" in Houston, but in all honesty it's probably where the best seats are. Natural gas traders are a dime a dozen so there are roles all over the country, but the shops with the firepower to let you be the trader everyone on this board thinks they are destined to be are primarily ran out of Houston. If you plan on going the distance with this career, I'd keep that in mind.
You can get rich at BP and you're set up as well as anyone to get rich somewhere else, but it's definitely not as sure of a thing with banking. Having said that, the job is a million billion times more fun and the absolute upside is probably higher.
can you DM me?
why do you think gas is less interesting than crude?
Thanks for the great response! If you had the choice right now of entering the industry, would you choose NatGas or crude? I could see if a seat in Chi is open for bp's crude desk
My opinions on gas should be heavily discounted, but it's fungible and limited to moving around a certain way within which it is super efficient.
I would still choose an "oil" desk - crude, gasoline, or distillates. The trading of these products probably has plenty of race left. If you want to be on the cutting edge and on more strategy/business/project related stuff, I think a stronger argument could be made that long term opportunities seem more likely on gas though.
What about power products?
OP here. Also very interested in this. It seems like power is where the top traders are but I could be very wrong
can you explain why gas is better long term?
Gas has more vol. plain and simple. The big blowouts you see on crude you see in gas on a yearly basis but it might just not be in the market you “cover” if you work at a place like BP. For example: look at SoCal, looks at the west this last 2 years (everyone is looking for west gas traders now when everyone has been saying west gas is dead for years). Look at Permian. Look at aeco. Looks at the global LNG/gas trade this summer.
Learning gas and how it flows sets you up to be able to look at other regional gas markets and trade it financial. Lots of crude trades you need the logistics and to move the actually physical barrels to realize the trade. If you want to be physical, crude is better. Crude trading is all about optimizing your assets to exploit pricing inefficiencies. Gas markets the financial product is often more liquid that the physical product. Yea trading gas physical is super efficient and you will be grinding out pennies. But once you understand how pipeline flows and storage and how the market balances, you have the tools to trade more markets financially.
Full disclose this is all coming from a gas guy, but I also have 2 rows of crude traders behind me.
Pretty sure this has been touched on a bunch before, but generally the path through, and out of the GDP/TDP program in Houston looks like this:
1) Take and pass the Assessed Traders' Course. The pool of those folks every year is limited so nearly all find a seat. Which seat that is though depends on how well you network and keep relationships open through your rotations. If you want out of Houston, you have two options: NYC, where most of our Power trading is (you'll want to have a rotation or two in power to open that door) or Chicago (two options, we have a small physical gas desk that hasn't had an opening in years, or you could try and pivot to Oil/Products or Treasury, but both require a lot of networking out of your normal sphere).
2) Go into the Analytics team. We have a world-class analytical team, but it will be a few more years of learning and teeth-cutting. We haven't lost a ton of talent externally, but we have lost a chunk to our Chicago and London offices.
3) Go into our Marketing and Origination team, as a junior marketer. There is another assessment we have for that, but honestly this path is not great. We haven't really figured out how to grow marketers and originators (as we haven't really needed to) and honestly we probably should be moving folks out of our physical trading teams for thees roles rather than trying to grow 20-somethings into it.
4) Leave, which is fine. Every year we have folks leave to get an MBA, a JD, go to med school, or lateral move to another company. The BP alumni network is giant in the business. Work here for 10 years and you'll have former co-workers at nearly every other shop.
What is the difference between Trading and Marketing/Origination? I noticed there seems to be a distinction between the two in O&G markets.
Is Marketing/Origination focused purely marketing say a specific oil major’s asset volumes, and Trading to be focused with third party volumes at an oil major?
At least for us the distinction is risk. Trading prices and holds the price risk of their various products. Trading mostly deals with counterparties (either electronically or via voice brokers). Marketing & Origination is a more sales-based group. More like customers than counterparties, coming up with tailored solutions and new ideas to help others manage and reduce their risks. But at the end of the day, whatever exposure is generated from those Marketing deals (buy gas from a producer, say) ends up in Trading books. Marketers and Originators make their money on margin, Traders mostly on exposure management.
Makes sense. I guess in the markets that I deal in there is no clear separation of the two, and as a Trader we do both. I can see how it works to optimise both Marketer/Originator and Trading’s tasks by having that distinction.
Was wondering since you mentioned Trading mainly deals with voice over/electronic counterparties. Who would do the physical trading/marketing of cargoes, lie with Marketing/Origination?
Interested in this as well, no real distinction between the two in my market, save for physical/paper.
Someone once described it to me as "Origination/Marketing extends the trading desk." For gas/power they will go out and seek deals that are not available via the screen. Typically these will be off-takes, HRCOs (heat rate call options), tolling, etc.--basically deals that involve buying/selling physical gas and power associated w/ a power plant. As mentioned above, Origination will clip margin on the deal and get credited. The risk then gets worn by the trading desk. They'll be in charge of actually executing on the deal for the length of contract--supply physical gas, offtake power--and it is their choice on how to manage that risk.
To answer your question about trading/marketing of cargos (remember i'm a power/gas guy but know crude ppl), it would depend on the type of deal you're talking about. If it is a spot transaction then trade desk. If it is a longer term deal (outside of 1 year) then marketing/origination.
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