With the surge in energy prices over the past few years, as well as the perceived increase in trading volatility, regulators have fixed their sights on potential fraud and manipulation in the energy markets. Some of these efforts, such as the Department of Justice’s creation of an Oil and Gas Price Fraud Working Group, have received significant public attention, despite the fact that it remains unclear whether—and how—this will actually impact oversight of the markets.
Less attention has been given to the work that already has been undertaken by the Commodity Futures Trading Commission (CFTC), the Federal Energy Regulatory Commission (FERC), and other law enforcement officials to police the energy markets—efforts that have led to turf battles between regulators competing to assert their jurisdiction in this arena. Less attention also has been given to the overlap between these enforcement activities and regulators’ parallel efforts to determine whether structural forces are impacting commodity pricing. It remains to be seen whether the Working Group will help streamline and coordinate these efforts, or whether the heightened interest in this area will generate yet more jurisdictional struggles and duplicative inquiries.
The Working Group
