Senate Energy-Speculation Bill Is Blocked

[sasha031]

WASHINGTON -- Senate Republicans on Friday blocked a vote on legislation to rein in speculation in the energy markets, instead calling for energy votes that would expand domestic petroleum production and more nuclear power development.

Democrats, in a 50-43 vote, failed to gain the 60 votes needed to bring the speculation bill forward for consideration on the Senate floor. Now they face another week of energy debate as Republicans threatened to hold the measure up to hammer home their "drill more, use less" policy.

The Democrats' legislation would require the Commodity Futures Trading Commission to set limits on the amount of speculative trades that can be made by participants who aren't buying futures to offset their exposure to the actual commodity, including in over-the-counter markets and other exchanges exempt from the same oversight as the New York Mercantile Exchange.

"There's clearly nothing more important in the country for Congress to deal with ... than the price of gas at the pump," said Sen. Mitch McConnell (R., Ky.). The minority leader said his party would continue to hold up business on the Senate floor until Democrats allowed them to offer a series of amendments on expanded offshore drilling, oil-shale development, nuclear power and other energy alternatives.

Republicans have been trying to use a swell of public support for increased petroleum production -- including areas currently closed on the Outer Continental Shelf -- to break Democrats' opposition to lifting a decades-old drilling moratorium.

[Name removed]

1. Deleted message

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[katnapped]

2. Well of course they don't want to rein it in

They're reaping the benefits of it (money gushing in, plus having the ability to blame the Democrats for it)

[sasha031]

4. thank you so much for posting, excellent link

[girl gone mad]

10. The financial collapse made this crystal clear, imo.

Once these speculators lost access to capital, the bottom fell out of the market. Real demand is significantly lower than the price reflects.

[CrownPrinceBandar]

3. McConnell is a jerk...........

"There's clearly nothing more important in the country for Congress to deal with ... than the price of gas at the pump," Oh really? Sounds like a guy who doesn't have to drive himself to work everyday, or do his own shopping.

Totally in the pocket of the oil industry. Fuck him.

[endless october]

5. while i wouldn't be against requiring speculators to have to take delivery of the oil they buy,

what would be the resulting effect on supply if the price of oil were to drop significantly? and, continuing that logical thread, what would be the motivating force to drive fuel efficiency innovation and alternatives? conversely, would the price really drop at all, or would the increased demand for fuel caused by lack of motivation for efficiency just send it right back up?

what i feel somewhat certain about is this : at some point in this century, oil reserves will become depleted enough that a large war over the remaining reserves will become inevitable if we don't replace oil. i don't, however, support artificially raising the price to speed this research, as it will be a tax paid predominantly by lower income earners.

[DCKit]

7. You make the most sense of anyone I've ever seen posting about oil.

Don't get used to the accolades.

[jpak]

6. This needs a wider audience - gas prices are sapping family budgets and GOP cronies get rich

fuck the GOP

yup

[DCKit]

8. Some of us (here on DU) have been on this for years.

The opposition has been almost as strong as that defending the disaster at Fukushima.

[Proud Liberal Dem]

9. Use less?

How, in some areas (without increased public transportation), is that possible? The Republicans don't support public transportation much either. :shrug: Also, are oil companies using all of their existing drilling permits already? I seem to remember that, at least as of 2008 (the last time gas prices were spiking- though not as badly by comparison), the news was reporting that oil companies aren't utilizing all of the permits they were already granted and, in fact, most of their refineries weren't even operating at full capacity. Without evidence to the contrary, I would have to assume that not much (anything?) has changed. Does McConnell or anybody else have some kind of information that oil companies are all tapped out with their current permits and/or that their refineries are operating at maximum level???? :shrug:

[pa28]

11. Even Goldman is saying speculation is to blame for driving the price up.

Democrats need to take a page out of the Republican playbook once in a while and make their case directly to the public.

If McConnell is feeling no public pressure we're going to get more of the same. Nothing.