BP plc · LSE:BP.
BP — Investor Presentation (November 2015)
15 slides from BP's investor presentation, November 2015
Slide 1: The Enterprise Trading Game
The Enterprise Trading Game BP Schools Link: Introductory presentation a \v fa that ct Saag — challenges your students to engage in a simulation of real-life oil trading! it:
Slide 2: Your challenge
Your challenge () 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. bp
Slide 3: United States Olympic Committee and Team USA
United States Olympic Committee and Team USA © iStockphoto
Slide 4: Gasoline, diesel and other useful products
gasoline, diesel and other useful products. © iStockphoto
Slide 5: 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 6: How to play the game...
How to play the game...
Slide 7: Step 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: completes Trading Request form in consultation with team, and gets it to the Assistant Controller within
Slide 8: Step 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 somet
Slide 9: Trading terminology
Trading terminology Market view ©) Bullish — an expectation that prices will go up. ©) Bearish — an expectation that prices will go down. Bearist Neutra Bullist < Prices are falling Prices are rising > Feeling mega Slightly ‘bearish’ Slightly ‘bullish’ Feeling mega ‘bearish’ ‘bullish’ (Max short -10
Slide 10: Step 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 not flat at
Slide 11: Step 4: Buying and selling
Step 4: Buying and selling {)) 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 12: Expected trading price ranges
bp Expected trading price ranges ie )) 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
Slide 13: Step 5: Trading request form
bp Step 5: Trading request form ie A Trader from your Team name: | A1 Team Practice round: | 1 team must complete a Trading request form ———— and get it to the Assistant pd Lied becrot Controller before the = $1,200,000 end of the round. Instruction to sell e ae emember: round: 2 All trading decisio
Slide 14: Step 6: Financial report
Step 6: Financial report (©) During the game your Table of accounts Accountant will need to Sees ten tn OR keep track of your team’s - = market position by filling in 2 si0 the table of accounts on ; are the Financial report. Uplate (©) At the end of the game the Accountant must complete the final c
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. ) Trade in increments of 10 lots (10,000