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!
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.
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?
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.