Rep. Gillibrand Announces Legislation to Rein in Oil Speculation

Press Release

Rep. Gillibrand Announces Legislation to Rein in Oil Speculation

Today, local Congresswoman Kirsten Gillibrand announced that she will be sponsoring legislation that will attempt to rein in rampant oil speculation that many industry analysts believe has been key in the record high energy prices worldwide. H.R. 6330, the Prevent Unfair Manipulation of Prices (PUMP) Act attempts to shed light on the futures commodity market, where oil is traded. With oil prices reaching nearly $140 a barrel, many have pointed to oil speculation as a major contributing factor to the rapid rise in oil prices.

Over the last eight years, speculators share in the oil futures market grew from 37% to 71%. Industry analysts say that oil speculators make up anywhere from 30-50% of the price of oil on the market - meaning that actual oil prices should be closer to $60-$80 rather than the record high $140 a barrel. This legislation will close many loopholes in the regulatory system and increase federal oversight to ensure that energy speculators are basing trades on market realities rather than gaming the system to make money at the expense of Upstate New York families.

"Our energy security requires a comprehensive approach," said Congresswoman Gillibrand, a Member of the House Agriculture Committee, which has jurisdiction over the Commodity Futures Trading Commission. "This legislation is another piece of the puzzle to solving our energy future. Our ability to rein in the oil speculators that have contributed to such a rapid increase in oil prices must be met with significant investments in alternative energy, expanding domestic production using environmentally-sensitive technologies, and expansion of conservation methods, technologies and products that greatly reduce our energy usage."

Later today, the Congresswoman will be participating in a House Agriculture Committee hearing regarding the futures energy market and will hear testimony from the Chairman of the Commodity Futures Trading Commission.

"Rising energy prices is one of the most critical issue facing Upstate New York families, farms, and businesses," said Congresswoman Gillibrand, who sits on the Subcommittee on Conservation, Credit, Energy and Research. "I look forward to hearing the testimony of the CFTC Chairman as to what actions the Congress can take to aid the Commission in their efforts to rein in this rampant oil speculation."

Congresswoman Gillibrand has been a leader in Congress on short-term and long-term approaches to address the rising prices at the pump, and ensure America's energy security by moving the country forward on a path towards energy independence. In April of this year she called on the President to temporarily suspend planned future purchases to the Strategic Petroleum Reserve and drawdown an additional 15 million barrels of oil from the Reserve to infuse into the market.

Congresswoman Gillibrand has also called for expanded domestic energy production to address concerns about America's energy supply. She is a sponsor of H.R. 6256, the Responsible Ownership of Public Lands Act, which calls for economic incentives to get the oil and gas companies to utilize the 68 million acres of already permitted federal lands for energy exploration. "We can't drill our way out of this problem, but for the oil and gas companies to continue to make record profits while Upstate families are struggling with record prices at the pump, and not to use the leases they currently have, is unacceptable." "It is time for American energy policy to be dictated by the consumers and not the oil and gas industry."

Congresswoman Gillibrand has been a leading advocate for energy independence through the research and development of new energy technologies. "Our long-term energy security is tied to our ability to work toward achieving energy independence through investment and deployment of new energy technologies. I want America, and specifically Upstate New York, to be the market leader in the development of these new technologies that will, not only bring us closer to achieving energy independence, but will create ‘green collar' jobs and revitalize our agricultural and manufacturing bases. Our region is blessed with not just the natural resources that can create energy through solar, wind, hydroelectric, and geothermal power, but we also have the creativity and innovation to lead the region in the development of non-food based biofuels, fuel cell technology and energy efficient building and product manufacturing."

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