On June 25, 2007, the Permanent Subcommittee on Investigations held the first of two days of hearings entitled, Excessive Speculation In The Natural Gas Market. The Subcommittee’s hearing examined the reasons for the extreme price levels and volatility in the natural gas futures markets in 2006 and how excessive speculation by a single hedge fund, Amaranth LLC, dominated the natural gas market and distorted natural gas futures prices. The hearing also examined the extent to which excessive speculative trading on unregulated energy exchanges contributed to the price distortions, and the need for statutory and regulatory changes to prevent manipulation and excessive speculation on unregulated exchanges from detrimentally affecting energy prices.
Staff Report – Excessive Speculation in the Natural Gas Market
Appendix – Excessive Speculation in the Natural Gas Market
President, New England Fuel Institute
Northeast President, Petroleum Marketers Association of America
Professor, Jesse H. Jones Graduate School of Management