Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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The Hedging Policies of BP with the Systematical Analysis

Authors
Nan Huang1, a,*, †, Shang Jiang2, b, *, †, Yuting Sun3, c, *, †, Ziting Yuwen4, d, *, †
1School of Mathematics, University of Birmingham, B15 2TT, Birmingham, United Kingdom
2School of Business, University of Birmingham, B15 2TT, Birmingham, United Kingdom
3Faculty of Business and Administration, University of Macau, Macau, China
4Leeds Business School, University of Leeds, LS2 9JT, Leeds, United Kingdom
†

These authors contributed equally.

*Corresponding author Email: anxh871@foxmail.com
Corresponding Authors
Nan Huang, Shang Jiang, Yuting Sun, Ziting Yuwen
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.183How to use a DOI?
Keywords
Hedging policy; BP; financial derivative; oil and gas industry
Abstract

The article provides a general overview of BP’s hedging policy. We analyze how the company hedges risks and risks the company hard to hedge. BP is a multinational oil and gas company, the main risks in the area of swapping the economic exposure and managing its normal business exposures. Based on analyzing data from annual reports of BP and comparing with the SHELL, we estimate how BP hedges risks. BP mainly used financial derivatives instruments such as futures and options to hedge risks such as market risks. Except for price and market risk, our study also finds that climate change and geopolitical risk are hard to hedge for BP. Our research may provide some reference for the company like BP to make hedging strategies in the future.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
10.2991/assehr.k.211209.183
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.183How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Nan Huang
AU  - Shang Jiang
AU  - Yuting Sun
AU  - Ziting Yuwen
PY  - 2021
DA  - 2021/12/15
TI  - The Hedging Policies of BP with the Systematical Analysis
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1129
EP  - 1134
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.183
DO  - 10.2991/assehr.k.211209.183
ID  - Huang2021
ER  -