UH GEMI Hosts Eighth Annual Energy Trading Conference Where
Energy and Financial Experts Shed Light on Dodd-Frank Act’s Implications
The University of Houston Global Energy Management Institute (UH GEMI) drew record attendance to its eighth annual energy trading conference, “The Impact of Dodd-Frank on Energy Trading,” held on March 23.
Held at the UH University Hilton, the conference included a slate of presentations in the morning followed by a luncheon keynote featuring CME Group CEO Craig Donohue. More than 150 people attended the event, including students from UH Bauer College as well as industry professionals. The conference was sponsored by CME Group (scholarship sponsor), Willis Group (breakfast sponsor), who also announced a $5,000 scholarship be donated to the C. T. Bauer College of Business in honor of professor Craig Pirrong, and SAS (luncheon sponsor).
In addition to Donohue, speakers at the event included CFTC Commissioner Scott O’Malia; J.P. Morgan Global Head of Commodities Strategy Colin Fenton; Williams & Jensen Principal George Baker; IPR-GDF Suez Energy Marketing President & CEO Sam C. Henry; Shell Energy Vice President of Regulatory Affairs Bob Reilley; and Deloitte & Touche Director of Enterprise Risk Service William Hederman.
By hosting programming like the energy trading conference, Bauer College is cementing its place as the energy business school, said Dean Latha Ramchand.
“We’re bringing in the energy industry regulators and facilitating a dialogue so that the issues that the industry faces are brought to light,” she said. “We want to serve as the source that opens up the conversation and engage our students and faculty in the conversation.”
What is Dodd-Frank?
Passed by the U.S. Congress in 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act brings the most sweeping changes in financial regulation to the American business sector since the Great Depression. The 848-page federal statute — a response to the 2007-2010 financial crisis and government bailout — is one of the most pressing issues for the energy industry, according to Craig Pirrong, the finance professor and UH GEMI director of energy markets who organized the conference, making it an obvious centerpiece for this year’s conference.
“Dodd-Frank is going to have a major impact on firms throughout the energy business,” Pirrong said. “So essentially everybody in the energy value chain is going to be impacted in multiple ways.”
GEMI Speakers On Dodd-Frank
“We’re in a new era of regulation with Dodd-Frank and if we take shortcuts to enforce these regulations, it could mean problems for our future with unintended consequences.”
U. S. Commodity Futures Trading Commission (CFTC)
“My job is to manage the risk in the energy trading business and the Dodd-Frank Act will make that more difficult because it will probably will mean a lot of participants will change the way they do business and there will be fewer transactions, less hedging, less liquidity and higher costs.”
President and CEO
IPR-GDF SUEZ Energy Marketing NA Inc.
“My concern with Dodd-Frank is that we haven’t specified the problem to even come up with a solution on how to comply with the new regulations.”
Global Head of Commodities Research and Strategy
J. P. Morgan
“What’s stunning to me is how many companies have not put away money for Dodd-Frank projects and that will affect them down the line.”
Enterprise Risk Service
Deloitte & Touche LLP
“Until all regulations are finalized in the Dodd-Frank Act, the energy industry cannot move on implementing these new rules.”
Williams & Jensen
“The Dodd-Frank imposes banking style regulation on the energy industry and it’s not an easy fit for non-financial companies.”
“The Dodd-Frank is a massive piece of legislation and I think too much was delegated to constituents.”
By Amanda Sebesta