Which firm/bank to choose for S&T in Houston
I am looking to get an S&T internship in Houston next Summer and could do with some help.... Could anyone with relevant information tell me the advantages and disadvantages of choosing a bank, rather than one of the major oil firms like Chevron, Shell and BP.
What are the differences in pay and culture like for example? Anything info is helpful, I'm just trying to get an idea of where I want to apply to next year.
They're super different. If you're interested in the physical trading side go to a supermajor, at a bank you may do other things. Also, keep in mind at a supermajor you won't become a full-fledged trader for a few years. Also, applying to both would be pretty easy.
Haven't been in touch with them lately, but I really enjoyed the guys from Merrill Lynch Commodities.
Super classy act, and the only firm to "reimburse" me for my expenses with a $300 gift card, after already covering the flight, hotel, and taxis to and from the airport.
Like the poster said above; you should differentiate between "physical" traders, who own an asset base and seek to optimize its production; or screen traders, who generally make online markets only.
Physical traders are generally energy co's and a few select banks (GS comes to mind), while certain banks just trade screen.
Screen traders are like traditional S&T roles where you seek to make markets, and the atmosphere/pay resembles a normal trading floor (albeit a little more wild given it's commodities). Analysts likely transition into a P/L role within 1-2 years, similar to trading in other products.
Physical traders, especially energy co's, will have their trainees rotate through ops/logistics for 1-3 years (with some never leaving) before giving them a P/L trading role. Physical trading is much more centered around protecting the "bacon" in efficiently allocating your assets and obligations to deliver; and hoping a blowout or some other phenomenon happens every 5 years which you can pile into. The pay is lesser here at the start (likely $65 vs $85), but good physical traders ultimately make a killing as they have a natural advantage that can't be replicated by screen.
Thanks. Where can I find out more about physical trading? I assume it is more about long term investments rather than trading? Can I get internships doing this sort of thing? Also, would I be expected to fly to Houston every time I get an interview for a bank/energy co. Might get a bit pricey.
the company will pay and schedule your flight and hotel for interviews.
CCI, Macquarie, BP
Banks-Macquarie Majors-BP, Shell, ConocoPhillips, P66, Chevron, ExxonMobil Physical Shops- EDF, Sequent, Castleton, CIMA, PacSummit, Mercuria
Bank rotational programs are slim to get into in Houston. Think Citi is the only one with a structured commodities S&T program. Macquarie doesnt have one. Goldman only has about 5 people in the Houston office, not really sure what MS is doing these days, BAML is always restructuring with people coming and going
Best best is to go to a supermajor and learn the physical markets then leverage that knowledge into a trading role at another company
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