Undue

The federal agency overseeing offshore drilling activities announced a new policy Tuesday aimed at preventing undue influence by the oil and natural gas industry on agency employees and averting conflicts of interest.

Chief Administrative Law Judge Curtis L. Wagner Jr. Friday suspended FERC enforcement proceedings against Energy Transfer Partners LP (ETP), saying that the two sides are in settlement negotiations to resolve the pending price manipulation charges against the Dallas, TX-based energy company.

Whether one believes speculators exert undue influence over commodity prices likely depends as much on one’s market position as on any empirical evidence that speculative trading is “good” or “bad.” So rather than trying to call out market sinners, a new report on gas market speculation from the National Regulatory Research Institute (NRRI) merely offers a primer on the long-debated topic and advice for state utility regulators who must weigh the impact of hedge fund activity on ratepayers.

Whether one believes speculators exert undue influence over commodity prices likely depends as much on one’s market position as on any empirical evidence that speculative trading is “good” or “bad.” So rather than trying to call out market sinners, a new report on gas market speculation from the National Regulatory Research Institute (NRRI) merely offers a primer on the long-debated topic and advice for state utility regulators who must weigh the impact of hedge fund activity on ratepayers.

Constant revisions to the weekly natural gas storage surveys contribute to undue market volatility, according to commenters on the Energy Information Administration’s (EIA) proposed survey changes. The comments ranged from warnings that changes to the storage revisions policy could lead to market manipulation, to recommendations that companies frequently reporting revisions be penalized.

Constant revisions to the weekly natural gas storage surveys contribute to undue market volatility, according to commenters on the Energy Information Administration’s (EIA) proposed survey changes (see Daily GPI, July 12). The comments ranged from warnings that changes to the storage revisions policy could lead to market manipulation, to recommendations that companies frequently reporting revisions be penalized.

Sen. Dianne Feinstein (D-CA) has asked the Senate Committee on Governmental Affairs to investigate the possibility of an improper relationship between the energy industry and the Federal Energy Regulatory Commission based on an exchange between FERC Chairman Curtis Hebert and Enron Chairman Ken Lay as reported recently in The New York Times.

Sen. Dianne Feinstein (D-CA) has asked the Senate Committee on Governmental Affairs to investigate the possibility of an improper relationship between the energy industry and the Federal Energy Regulatory Commission based on an exchange between FERC Chairman Curtis Hebert and Enron Chairman Ken Lay as reported in The New York Times.