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Sen. Byron Dorgan, D-N.D., said Tuesday that Senate Democrats are working on a new energy package that would deal just with the issue of market speculation, which lawmakers suspect of helping drive up oil prices. In a sign the package may have bipartisan appeal, Sen. Kay Bailey Hutchison, R-Texas, said Republicans might be open to such a plan, although they hope to pair it up with increased domestic drilling.
"There is something wrong with the cost of a barrel of oil, even with all of the fees and the taxes," Hutchison told reporters. "There's got to be a speculation-in-the-futures-market part of that that we ought to be able to do something about."
Recommendations
1. Eliminate Enron Loophole. Congress should eliminate the
Enron loophole that currently limits CFTC oversight of key U.S.
energy commodity markets and put the CFTC back on the beat policing
these markets.
2. Require Large Trader Reports. Congress should enact legislation
to provide that persons trading energy futures ''look-alike''
contracts on over-the-counter electronic exchanges are subject to
the CFTC's large trader reporting requirements.
3. Monitor U.S. Energy Trades on Foreign Exchanges. Congress
should enact legislation to ensure that U.S. persons trading
U.S. energy commodities on foreign exchanges are subject to the
CFTC's large trader reporting requirements.
Originally posted by Keyhole
In that report, back in 2006, the Senate Subcommittee reported how speculation was the driving force pushing gas and oil prices higher, and yet they DID NOTHING!
[edit on 6/12/2008 by Keyhole]
FOR IMMEDIATE RELEASE
June 27, 2006
The report recommends that the CFTC’s large trader reporting system be extended to require all U.S. traders of energy futures to report large trades to the CFTC, regardless of where the trade takes place – on the NYMEX, on an over-the-counter electronic exchange, or on a foreign exchange.
*****SKIP*****
“We need to explore legislative ideas to ensure that energy prices reflect the true market forces of supply and demand and guard against speculators driving up prices,” Coleman said. “It is becoming increasingly clear that our efforts must be proactive, as the energy futures market is really about whether families will be able to afford to heat their homes and fill up at the pump. As more and more trading occurs on electronic markets without oversight, it’s time to determine whether the scale needs to be tipped from the speculator to the regulator.”
B. Recommendations
1. Eliminate Enron Loophole. Congress should eliminate the Enron loophole that currently limits CFTC oversight of key U.S. energy commodity markets, and put the CFTC back on the beat policing these markets.
2. Require Large Trader Reports. Congress should enact legislation to provide that persons trading energy futures “look-alike” contracts on over-the-counter electronic exchanges are subject to the CFTC’s large trader reporting requirements.
3. Monitor U.S. Energy Trades on Foreign Exchanges. Congress should enact legislation to ensure that U.S. persons trading U.S. energy commodities on foreign exchanges are subject to the CFTC’s large trader reporting requirements.
4. Increase U.S.-U.K. Cooperation. The CFTC should work with the United Kingdom Financial Services Authority to ensure it has information about all large trades in U.S. energy commodities on the ICE Futures exchange in London.
5. Make ICE Determination. The CFTC should immediately conduct the hearing required by its regulations to examine the price discovery function of the ICE OTC electronic exchange and the need for ICE to publish daily trading data as required by the Commodity Exchange Act.
May 19, 2008—Sen. John McCain says he opposes the $307 billion farm bill because it would dole out wasteful subsidies, but his chief economic adviser Phil Gramm also wants to stop its proposed regulation of energy futures trading, a market that was famously abused when Enron Corp. manipulated California’s electricity prices in 2001.
Originally posted by marg6043
But you see, why should congress want to allow more drilling in American, when they are up to their necks in the butts of those that are reaping the wealth.
We have a government that is run by oil men and corporate America.
They are all doing very well when it comes to personal wealth.
Originally posted by Keyhole
This is a very interesting and informative article:
McCain Defends 'Enron Loophole'
May 19, 2008—Sen. John McCain says he opposes the $307 billion farm bill because it would dole out wasteful subsidies, but his chief economic adviser Phil Gramm also wants to stop its proposed regulation of energy futures trading, a market that was famously abused when Enron Corp. manipulated California’s electricity prices in 2001.
This article describes how Enron manipulated the price of electricty in California through this "Enron Loophole", and goes on to explain how other energy commodities began be manipulated by speculators through this loophole.
It's a very good informative article that's worth the read!
[edit on 6/12/2008 by Keyhole]