BP Rejects Gas Manipulation Allegations in US

BP rejects any allegation of market manipulation in late 2008, writing in a note to be disappointed that the US Federal Energy Regulatory Commission (FERC) has brought this action.

“The FERC bases its allegations on a recorded two-minute phone conversation between a BP trainee and BP natural gas trader that the regulator has taken completely out of context,” said BP vice president and Head of U.S Communications Geoff Morrell. 

The FERC and the US Commodity Futures Trading Commission (CFTC) are currently investigating several BP entities regarding trading in the next-day natural gas market at Houston Ship Channel during October and November 2008. 

“We will vigorously defend against these allegations,” commented Morrell.

The proposed fine for BP is near $30 million, much smaller than others FERC has pursued over the last months. BP has 30 days to pay to fine or contest the order.