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Friday, July 25, 2008
Effort to curb oil speculation stalls in Senate
By DINA CAPPIELLO
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Senate Democrats failed Friday to advance a measure to rein in oil market speculators, one of a series of efforts to tell voters they are serious about addressing $4-a-gallon gasoline, and they rejected Republican calls to expand offshore oil production.

Democrats needed 60 votes to clear a parliamentary hurdle and bring their oil speculation bill to a final vote. They got only 50, as 43 Republicans held out for votes on numerous amendments they say would bring down energy prices.

Senate Majority Leader Harry Reid has formally offered them a vote on a single amendment on offshore drilling. In the House, Democratic leaders have blocked any vote on offshore drilling.

"The Republican senators have chosen to take a dodge," said Reid, D-Nev. "If you don't like our speculation bill, what do you want? Silence. They said they want this energy debate to go on forever."

The Senate Democrats' bill would require the Commodity Futures Trading Commission to set limits on trading in oil markets by investors and speculators. It also would close a loophole that lets speculators trading on the London oil market escape scrutiny by U.S. regulators.

Democrats say the rapid increases in oil prices have coincided with big rises in trading on oil future markets.

Republicans say high gasoline prices are being caused by the basic economics of supply not meeting demand.

"We are not leaving, we are not giving up," said John Cornyn, R-Texas. "We can tear down these walls that prohibit domestic energy production here in America."

The Senate scheduled a procedural vote Saturday on a measure to double subsidies to helping poor people pay what are expected to be record heating bills next winter. But as Congress headed into the final week before the August recess, chances of breaking the energy stalemate between Republicans and Democrats looked bleak.

On Thursday, House Republicans scuttled a bill to release 70 million barrels of oil from a national stockpile, which Democrats said would lower gasoline prices.

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The bill is S.3268.

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Subject: oil politics
I can't believe the audacity of the dem's and their fellow travellers promoting this lie that increasing domestic oil production will not lower the price of energy. They send up smoke screens (evil oil companies, speculators, etc.)and then make statements that counter these very arguments:

argument: ..skeptical that an robust oil drilling program in the US will lower the cost of a barrel of oil..

contradictory statement: ... It is certainly true that the revenue received by the US treasury may go up from increased domestic production. Certainly it will help with our balance of trade problem....

Well, I would bet that if we increase revenue to the US treasury and reduce our b-o-t deficit, then the value of the dollar will appreciate. A stronger dollar would result in lower oil costs.

If the dem's take control of gov't in the next election, it's a sure bet that they will allow increased domestic oil exploration. They will justify this action by saying that THEY are doing it in an environmentally responsible manner. Even though it will be no different than what is being urged at this time.

As a previous poster stated: the dem's WANT the US to suffer. They will then try to politically capitalize by crafting specious arguments that deflect the blame away from the dem's (it's the fault of speculators, oil co's, repub's, take your pick). In the end I hope US voters see through these cynical tactics.

Supply and demand...
for a commodity is what drives the cost of that commodity. That is what I was taught long ago and that is what I believe today. Now all of a sudden some have decided that speculation or some other stupid reason is the determining factor.

Oil prices are dropping because demand for oil is dropping. Businesses and consumers are doing everything they can to reduce consumption of high priced oil and this is having a major effect on the current drop in the price of a barrel of oil in my opinion.

Until the US has an alternative source for oil (which it doesn't) an increase in domestic oil production is the only solution to the oil crisis. Quit relying on government/politicians to solve this because they tend to make things worse. Quit relying so much on foreign sources. Stop listening to enviro alarmists. Quit worring about CEO salaries. Stop listening to the media and political pundits, because they don't have a clue. Let the free market forces do their job and America will solve this problem.
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