Congress Aims At Oil Trading: Democrats Offer Another Bill To Curb Oil Speculation

Reality Check: Americans are suffering from high prices at the gas pump, the price of oil is being pushed higher by higher world demand and a clear majority of Americans want something done to ease the pain and a viable solution for long-term relief. So, what do the Dems do? They hold hearings in an attempt to shift the blame away from where it properly belongs: with Congress.

First, they tried, unsuccessfully, many times, to blame the oil companies for price gouging. But the truth prevailed and it became clear the Dems were leveling false charges. So now, the Dems are going after investors or "speculators" as the culprits for the high price of oil. Does anyone else see where this is going and why it is such a sham?

From CNN:

Congress will focus on energy speculation on Monday, as some lawmakers blamed Wall Street traders for record oil and gasoline prices. Rep. Bart Stupak, D-Mich., the chair of a House Energy and Commerce subcommittee, will investigate whether further regulation of trading is warranted. ... Congress is awash in nine different bills that attempt to limit the role of speculators.

First let's look at the economics here. Oil prices are not high because the speculators came running over to trade futures, speculators came running over to trade futures because oil prices are high. You see, people don't start their car engines because they drove somewhere, they drove somewhere because they started their car engines. Get it?

This is simply another lame attempt at deflecting blame and a clear example of economic ignorance. They tried to blame the oil companies and then they tried to blame OPEC. They failed on all accounts.

Now they are trying to blame investors who are simply responding to the high prices that Congress is responsible for.

Congress has limited our supply by forbiding new drilling. Congress has bowed to environmental extremists and refused to allow new refineries to be built. Congress mandated the use of ethanol which required the use of even more oil and drove the price of gasoline even higher and drove up food prices as well.

Overall, this new attempt by the Dems to shift blame will have the same effect as all the proposed and enacted policies that came from the Dem leadership: not one drop of oil will be produced, not one drop of gasoline will be refined and the cost of energy won't be reduced by a single cent.

You can access the complete article on-line here:

Congress Aims At Oil Trading
Dave Goldman
CNN.com
June 23, 2008

Petronomics 101

I am almost amazed that there has been no major outcry from the American consumer about the price of gasoline. After all, it is the life blood of our economy.

But the price keeps going up and up and up. Not because of any "greedy" oil companies (their profit margin is a lowly 6%) but because of two reasons:

1) Increasing Global Demand
2) Decreasing Supply

Either one of these by themselves will drive prices up, but a combination of both will be like launching prices with JATO packs. What we have is a combination of both. The global demand is something that is out of our control. We simply cannot tell India and China that they have to stop using so much oil as it is the life-blood of their economies too.

The decreasing supply on the other hand, is something we could do something about, if only the leftist Dems (and a few Republicans) in Congress would get off of their high horses and join the rest of us in reality.

Lt. Col. Oliver North's most recnt column deals with these topics. From TownHall.com:

While Washington's political elites in both parties have debated and dithered, the price of crude oil has risen to $123 per barrel -- nearly double what it was at this time last year. The average cost of a gallon of gas at the pump is approaching $4 per gallon. Some analysts now are predicting that the price of a barrel of oil could approach $200 in the next two years -- and that gasoline could be $6 a gallon. An equal amount of diesel may cost truckers as much as $7.50.

But, when Congress tried to do something about it, this happened:

Ethanol: The Side Effects
84rules
April 29, 2008

And this:

Big Corn And Ethanol Hoax
84rules
March 13, 2008

And Lt. Col. North continues:

The cost of crude oil is out of sight and climbing. Petrodollars are funding a radical Islamic jihad being waged against us. Here at home, the cost of everything from fuel to food is going up, and we're sending out of the country capital needed to resuscitate an economy that is, at best, sluggish and, at worst, foundering. The majority in Congress has responded by proposing tax increases for domestic energy production, suggesting new mandates on producers, demanding that coal-fired electric plants be shut down, and whining that foreign governments need to increase oil production -- while opposing exploitation of reserves here at home. In a news conference two weeks ago, President Bush criticized Congress for blocking efforts to expand domestic oil production in the Arctic National Wildlife Refuge. And this week, in a noteworthy understatement, White House spokesman Scott Stanzel observed, "We have here, in this nation, resources that we are not utilizing." No, really? The newest oil refinery in the United States was built by Marathon in Garyville, La., in 1976. Since then, every effort to construct new facilities has been thwarted by protests and lawsuits from "environmental" groups and government red tape. It has been 12 years since the last nuclear reactor came on line to generate electrical power in the United States.

But not all in Congress are so blinded by PC idiocy:

Sen. Kay Bailey Hutchison of Texas has proposed a realistic solution: the Domestic Energy Production Act of 2008. Her bill would permit exploitation of more than a trillion barrels of U.S. territorial oil and nearly 600 trillion cubic feet of natural gas -- more than the combined hydrocarbon reserves of Saudi Arabia, Mexico, Nigeria, Venezuela, Libya and Iran. The measure also would streamline the process for building new refineries and clean, safe nuclear power plants, as well as funding to develop alternative fuels. But none of that -- and the consequent reduction in energy costs -- ever will benefit American consumers, unless Congress acts.

The longer we wait to get a comprehensive energy plan, the higher gas prices will go and the less money we will have to research and convert to alternative sources later on.

Please write to Congress and ask them to stop being so short-sighted and to support the Domestic Energy Production Act of 2008.

You can access the complete column on-line here:

Petronomics 101
Lt. Col. Oliver North
TownHall.com
May 9, 2008