BP plc · LSE:BP.
BP — Investor Presentation (May 2010)
25 slides from BP's investor presentation, May 2010
Slide 1: The Enterprise Trading Game: Introductory presentation
The Enterprise 2" Trading Game Introductory presentation — ensllenges your ™ students to engage in a simulation of real-life oil trading! ° 2 4 4 BP is proud to be a tier one partner for the London 2012 Pe -tareSho e Olympic and Paralympic Games
Slide 2: Your challenge
bp Your challenge ie ) You are going to trade crude oil. ©) You will work as a trading team competing against other teams. ©) Your task is to demonstrate the same skills that BP traders rely on in their everyday business. ©) Your objective is to make a profit. RR official partner of He Olympic ene!
Slide 3: Olympic and Paralympic Values and trading
bp Olympic and Paralympic Values and trading? ae ©) BP is the official oil and gas partner and a sustainability partner of the London 2012 Olympic and Paralympic Games. )) The Olympic and Paralympic Values are important principles for all walks of life. )) The Values of determination, respect and ex
Slide 4: Building success
Building success Success in this game means: ) showing drive — a determination to win ©) working together as a team — respecting opinions and communicating ©) using analytical and thinking skills — demonstrating excellence. These Values and enterprise capabilities are integral to the game. $3 offici
Slide 5: Importance of crude oil
bp Importance of crude oil ie ()} The commodity you will be trading is crude oil. ©) This is ‘unprocessed’ oil that is extracted from deep beneath the earth. ) It is not useful in its raw form — so is refined to make petrol, diesel and other useful products. (5) It provides us with: - energy for hea
Slide 6: Trading crude oil
Trading crude oil )) Crude oil is the world’s most actively traded commodity. {) Traders buy crude oil at the best available price and then sell it at the best price to meet demand. ©) This price is largely set by: - how much crude oil is for sale (Supply) - how many buyers there are for it (demand)
Slide 7: Entry-level game > Standard game >
Entry-level game > Standard game >
Slide 8: Playing the Entry-level game
Playing the Entry-level game 6
Slide 9: 1: Form a company
Step 1: Form a company There are four different roles within the company: !) Chair: calls meetings and oversees progress )) Market Analyst/s: leads on interpreting market information )) Trader/s: completes Trading request form and gets it to the Assistant Controller within the time limit {)) Account
Slide 10: 2: Company brief
Step 2: Company brief Your aim is to make a profit by: - buying barrels of oil at the lowest price possible - selling barrels at the highest price possible. {) Each company begins with a set amount of $US dollars (trading fund) and barrels of oil in stock. ©) You will play: * 3 practice rounds «6 tr
Slide 11: Step 3: Buying and selling
bp Step 3: Buying and selling ie {)) Each trading round starts with a news bulletin. sion ti aa ©) Decision time: NEWS wees aoa does your company think it’s a good time to: - buy (when you think the price will go up) - sell (when you think the price will go down) - not trade at all? ()) How will you
Slide 12: 4: Trading request form
Step 4: Trading request form A Trader from your team must complete a Trading request form and get it to the Assistant Controller before the end of the round. All trading decisions must be made as a team! official partner of the Olympic and Paralympic amex ie Company name: | A1 Team Practice round: |
Slide 13: 5: Financial report
Step 5: Financial report ie ) During the game your Accountant Table of accounts = . Company name: Al Team “0 will need to keep track of your “Deep mc ct your ts and stock ung the gum, you wl ned in comple this tbl of accounts Hager atthe ond ef each round barr company’s funds and stock by filling ——
Slide 14: Trading range and regulations
bp Trading range and regulations ie Prices can vary! In July 2008, crude oil traded for a record price of $147 a barrel — but fell to a price of around $40 a barrel within just a few months. ) Therefore, during the game expect to trade within the range of $40-$140 a barrel. Regulations {) Commission
Slide 15: Trading tips
Trading tips ()) What is your team’s market view? Are prices going up, down or staying stable? ) Trade so that your position reflects your market view. ) Buy low and sell high. ©) Keep within time — and trading limits. {)) Always keep track of your position. ©) You can only buy or sell up to 4,000 b
Slide 16: Playing the Standard game
Playing the Standard game 4 4 oficial partner of the Olympic andl Parslyenpic Games
Slide 17: 1: Form a trading team
Step 1: Form a trading team There are four different roles within your team: !) Chair: calls meetings and oversees progress )) Market Analyst/s: leads on interpreting market information )) Trader/s: completes Trading request form in consultation with team, and gets it to the Assistant Controller wit
Slide 18: 2: Team brief
Step 2: Team brief ) You will be trading in crude oil futures. ©) This means you will be making agreements during the game to buy or sell oil at a certain price. {)) However, the actual exchange will take place in the future (at the end of the game). ) Therefore it is not necessary to own something
Slide 19: Trading terminology
Trading terminology Market view ©) Bullish — an expectation that prices will go up. ) Bearish — an expectation that prices will go down. Feeling mega Slightly ‘bearish’ Slightly ‘bullish’ Feeling mega ‘bearish’ ‘bullish’ (Max short -100) (Max long +100) Market position ©) Long — you’ve bought more t
Slide 20: 3: Trading guidelines
Step 3: Trading guidelines ) You will be trading in ‘lots’. 1 lot = 1,000 barrels of oil. ©) You must trade in increments of 10 lots. () Your market position must be between -100 and +100 lots (+/- 100,000 barrels). {)) At the end of the game” you need to be flat. (©) If your position is short at th
Slide 21: 4: Buying and selling
Step 4: Buying and selling ie {)) Each trading round starts with a news bulletin. ) Market prices will change as supply and demand of oil is affected by events. ) Decision time: does you think it’s a good time to: - buy (when you think the price will go up) - sell (when you think the price will go d
Slide 22: Expected trading price ranges
Expected trading price ranges ) The price of oil is volatile! ©) Market prices will change as supply and demand of oil is affected by events. © In July 2008, crude oil traded for a record price of $147 a barrel but fell to around $40 a barrel within just a few months. ) Therefore, during the game ex
Slide 23: 5: Trading request form
Step 5: Trading request form ie A Trader from your Team name: | Al Team Practice round: | 1 team must complete a Trading request form : F and get it to the Assistant Ai Teens (S20| come x 1/000 barrels Controller before the = —= = = $1,200,000 end of the round. lots of oll @ per barrel = fs | . - je
Slide 24: 6: Financial report
Step 6: Financial report ie ©) During the game your Accountant will need to keep track of your team’s market position by filling in the table of accounts on the Financial report. {) At the end of the game the Accountant must complete the final calculations on the Financial report. An example of a co
Slide 25: Trading tips
Trading tips ()) What is your team’s market view? Are prices going up, down or staying stable? ) Trade so that your position reflects your market view. ) Buy low and sell high. ©) Keep within time — and trading limits. {)) Always keep track of your position. ) Trade in increments of 10 lots (10,000