2002

The Commodity Futures Trading Commission (CFTC) Wednesday announced that Greg Mocek, director of the division of enforcement since March 2002, will leave the the agency within 60 days to return to private practice as a partner in the energy and derivatives markets practice group at the law firm of McDermott Will & Emery in Washington, DC. Mocek spearheaded the agency’s investigations of several hundred energy companies, hedge funds and traders in recent years, which resulted in the filing of actions against more than 66 traders and corporations and the assessment of more than $445 million in penalties. Stephen J. Obie, the regional counsel/associate director and regional administrator for the CFTC’s New York office, has been named acting director of the division of enforcement, effective immediately. Obie joined the CFTC in 1998.

U.S. generation capacity additions in 2005 totaled 17 GW, down 25% from 2004 and 75% from 2002, and FERC staff predicts additions of new capacity will fall again this year. In a presentation to the full Commission Thursday, Stephen Harvey, deputy director of FERC’s Office of Market Oversight and Investigations, said current plans indicate that additions in 2006 are likely to be roughly half the 2005 level.

Energy merchant markets are predicted to grow 30% between 2002 and 2006, with oil and natural gas majors and financial service firms dominating the market, while asset-based traders — particularly in power — reengage, according to a report by Massachusetts-based Energy Insights. On the horizon, the study predicted there will be even more participation by financial institutions between 2008 and 2010.

The players that took charge of the energy merchant sector following the dismal 2001-2002 shakeout continued to lead North American wholesale natural gas sales in 1Q2005, with BP plc, Sempra, ConocoPhillps, Coral and Atmos holding the top five spots in NGI’s latest natural gas marketing survey. However, new participants began “immigrating” into the business during the first quarter, and more are expected to follow, industry experts predict.

Oil and gas production in some regions may have peaked, but global natural gas reserves are estimated to be 13% higher than estimated in 2002, and oil reserves are about 10% higher, according to BP plc’s Statistical Review of World Energy 2004, unveiled on Tuesday.

Dominion Resources and Statoil ASA announced last Monday they have signed a 20-year agreement that gives Statoil access to increased capacity at the Dominion Cove Point liquefied natural gas plant (LNG) located on the Chesapeake Bay in eastern Maryland.

Oil and gas production in some regions may have peaked, but global natural gas reserves are estimated to be 13% higher than estimated in 2002, and oil reserves are about 10% higher, according to BP plc’s Statistical Review of World Energy 2004, unveiled on Tuesday.

The Committee of Chief Risk Officers (CCRO), which was formed in 2002 to establish bottom-line standards for energy traders, plans by this summer to establish a best practice financial framework to serve as the foundation for the Standard & Poor’s (S&P) quarterly request for financial data.

The Committee of Chief Risk Officers (CCRO), which was formed in 2002 to establish bottom-line standards for energy traders, plans by this summer to establish a best practice financial framework to serve as the foundation for the Standard & Poor’s (S&P) quarterly request for financial data.