FERC Issues Notice of Alleged Natural Gas Market Manipulation

Federal energy regulators are assuming expanded roles as the administration prioritizes energy dominance and infrastructure development to meet unprecedented power demand. FERC Chairman Laura Swett has vowed to expedite data center interconnections while addressing jurisdictional challenges, warning that unmet electricity demand could drive data centers abroad and create national security risks. The agency is processing pipeline applications faster than in prior years and considering blanket authorizations for certain LNG and hydroelectric projects to streamline approvals. 

Pipeline projects previously stalled by Clean Water Act permits are being revitalized, particularly in northeastern states where historically high electricity prices have increased openness to natural gas infrastructure. The Department of Energy is expanding its emergency authority to require retention of generation resources and has granted major LNG export approvals, signaling commitment to expanding U.S. export capacity under a streamlined framework that deprioritizes climate considerations.  

The Administration is bullish on the opportunities for the U.S. energy industry in Venezuela and eager to support companies willing to navigate the political risk inherent in the operations at the moment. Early meetings with President Trump and industry leaders showed the path forward may be longer and more complex than anticipated by the President. 

As permitting reforms advance and the pendulum swings toward fossil fuel favorability, the regulatory and policy landscape is fundamentally reshaping energy infrastructure development timelines and investment opportunities. 

Oil & Gas in 2026: Energy Policy & Regulation 

Delve into the complete regulatory & policy outlook at our Oil & Gas in 2026 report.

Macroeconomic turbulence and volatile commodity markets significantly influenced oil & gas M&A activity throughout 2025, with deals showing renewed momentum only in the year's second half.  

On February 19, 2026, the Federal Energy Regulatory Commission (FERC) issued an order rescinding the soft price cap for bilateral spot market energy sales in the Western Electricity Coordinating Council (WECC) region.¹ As previously covered, on July 15, 2025, FERC initiated a Federal Power Act Section 206 proceeding following the D.C. Circuit’s decision finding that FERC must apply the Mobile-Sierra public interest standard before ordering refunds for above-cap bilateral sales and vacating FERC’s orders requiring refunds for certain bilateral spot market transactions in the WECC region that exceeded the $1,000 MWh soft price cap.² FERC’s Order follows through on the proposal it made last July to eliminate the WECCs soft price cap and marks a recognition that Western wholesale markets have evolved over the past two decades to become sufficiently competitive to render the soft price cap unnecessary.  

The oil & gas industry is experiencing a fundamental transformation in how companies access and deploy capital in 2026. Despite strong balance sheets and robust free cash flow generation, the sector is witnessing strategic shifts in funding sources and investment priorities that signal a new era of capital allocation.