The most prominent topic of conversation among energy executives recently is what is on the minds of CFTC commissioners, especially Scott O’Malia. As the only commissioner with significant experience in the energy business, O’Malia is considered to be the primary driver of the agency’s energy position.

The timing couldn’t be more important because the CFTC is considering new limits on energy trading positions that will come with exceptions for hedging. The agency issued a notice of proposed rule making last month for which it is accepting industry comments until April 26. Industry executives have lots of questions about how the hedging exception will work and how the CFTC will discern what trades are speculative and, therefore, prohibited for those companies that are granted exemptions.

An even bigger concern for many energy companies is what shape CFTC regulation of the OTC derivatives market will take if Congress grants the agency authority over those markets. CFTC commissioners have not been shy about their desire to regulate OTC markets and there are several bills working their way through Congress that seek to provide it that authority.

O’Malia previously served as the Staff Director to the Senate Subcommittee on Energy and Water Development, Committee on Appropriations. From 2003 to 2004, he served on the Senate Energy and National Resources Committee under Chairman Pete Domenici (R.-NM) as senior policy advisor on oil, coal and gas issues.  During his career, O’Malia established the Washington office of Mirant Corp., where he worked on rules and standards for corporate risk management and energy trading among wholesale power producers.

The Summit is co-sponsored by the Committee of Chief Risk Officers and SNL Energy.

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