Oil Watchdog
06-09-2008
by dugan
A project of 
6-9-08 by dugan
With gasoline at $4.04 nationally, and nearly $4.50 in California and a few other states, Washington is sleepwalking. President Bush today still had no better idea than drilling for oil in the Arctic wildlife refuge--a piddling, long-range and environmentally rotten idea from the beginning. He's obviously deaf to anyone but his pals in the oil business. Congress has better instincts, but no action. Take the farm bill--home of an amendment that would put some controls and oversight on the unregulated speculative energy markets that are driving oil prices. Unlike drilling in the Arctic, regulation could drop prices in a matter of months. Yet it's still not done, though Congress passed the bill overwhelmingly four weeks ago.
President Bush vetoed the bill May 22nd. The veto was about to be overridden when Congress discovered a "clerical error"--the version sent to the White House was missing a whole section. So Congress had to pass the bill again, which it finally did today. Now it has to go back to Bush for another purely symbolic veto--but he's off to Europe for a a week on a lame-duck tour. Then Congress has to override the veto--next month? Then the understaffed and unambitious regulators at the Commodities Futures Trading Commission have to write the regulations--plenty of room and time for mischief there.
How many of these folks actually have to pump and pay for their own gas? Obviously, not enough of 'em. The easy path for the loophole bill would have been to pass it separately. But Washington has its ways. Sen. Dianne Feinstein and a few allies tried to pass the bill for six straight years and couldn't. Even if Congress passed it, Bush would have been likely to veto it, since it had the word "regulation" in it. So including the measure in the farm bill was a last-ditch effort. Too bad it didn't happen way back last year when gas was under $3.00. Or in 2002, the year the Enron loophole bill was first introduced--and gasoline averaged $1.35 a gallon.
COMMENTS
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I live in Henderson, Nv. I filled my tank today at a Chevron station, the price was 4.119 a gallon. My last fillup was 3.659 a gallon on 5/13/08. Lucky for me Iam retired and don't drive 50 miles a day. I am so sick over the cost for gas and how fast it has gone up. There is no doubt in my mind that oil speculators are causing our problem. That plus the large ETF's that are now investing in oil and commodities because it's easy pickings. "To Hell" with the average American driver. As long as they make money they could care less about anyone else.
I have written my Senators and Congressmen asking for immediate help. I saw President Bush leaving for Europe today and he said he was sorry for the high price of gas. "Wow", Why doesn't he ask for an immediate task force to bring to justice the criminals causing our problem? I am a conservative Republican and voted for President Bush twice. I can't beleive he is standing by and watching the rape of the American people occur. I feel so sorry for the single mom's trying to work, support the family, and pay the gas bill. In my reading alot of people are putting the cost on a credit card now. God help them when the bills come due.
Someone needs to use "Common Sense" and get an investigation going. Common sense tells you that this problem is not supply and demand, it's speculators after the almighty buck and "To Hell" with anyone in their way.
Pete Ferrell, Henderson NV.
06-09-2008 | USER: hpete
Actually the problem is demand. Speculators, because demand is rising so high (Asia and India growing and industrializing like crazy), are speculating on the cost rising ever further. Keep in mind though, speculators DO NOT set the price of a barrel of oil, oil producers/exporters do, period! We are being price gouged by OPEC and the like. Getting angry with American oil companies who bring us our much-needed gasoline is like shooting the messenger who brings you bad news.
As for folks charging their gas on credit cards, perhaps they should try taking the bus for a change (providing that such service is available to them of course). I'll bet that muni bus service is not much busier than normal. Americans love their cars and are willing to pay just about anything to drive them versus riding a bus.
06-13-2008 | USER: cmfawn@surewest.net
Sounds like it is both the magic market and un-regulated speculation. Plenty of testimoney to support that.
Does anyone know if the new law in the Farm bill will even work? I saw Michael Greenburger speaking at a Senate Cmte hearing on June 3. He basically said the way it is written it's un-enforcable.
06-16-2008 | USER: joefootz