Stop Excessive Energy Speculation Act of 2008--Motion to Proceed

Floor Speech

STOP EXCESSIVE ENERGY SPECULATION ACT OF 2008--MOTION TO PROCEED -- (Senate - July 22, 2008)

BREAK IN TRANSCRIPT

Mrs. MURRAY. Mr. President, all of us who go home and listen to our constituents each weekend know one thing and one thing only is on their mind these days; that is, the rising price of gas. I have made a habit of writing down what I pay each weekend when I fly out to Washington State, and when it hit $4 a month or so ago, I was aghast. Imagine what everyone filling their tank in Washington State is thinking now that the price in my home State is pushing $4.50 a gallon. We need action. We need action now.

For months, Democrats have been trying to address this problem by providing short-term relief along with a long-term strategy. For months, we have heard only two things from our friends on the other side of the aisle: No, and drill. Democrats know there is no silver bullet to this crisis. It is going to take a series of steps, both short term and long term, to bring some sanity back to the situation.

Today, we are going to vote on another of those short-term solutions, and we are going to try to end excessive speculation in the markets. Democrats believe we have to rein in Wall Street and our traders who are unfairly driving up these oil prices. With regard for nothing but their own profits, some traders are bidding up oil prices by buying huge quantities of oil just to resell it at an even higher price. For nearly 8 years now, the Bush administration has turned a blind eye and let these questionable practices continue with virtually no oversight. Some experts are saying this kind of trading now accounts for 20 to 30 percent of what we pay at the pump.

The Senator from Texas, Mr. Cornyn, was on the floor earlier and asked for specific citations. Mr. President, I ask unanimous consent to have printed in the Record remarks from a series of economists, such as Gerry Ramm of the Petroleum Marketers Association, the Acting Chairman of the Commodity Futures Trading Commission, the former Director of the Commodity Futures Trading Commission, and others.

There being no objection, the material was ordered to be printed in the Record, as follows:

Economist Mark Zandi Said Speculation Played a Role in Driving Up Oil Prices. Asked if he believed speculation played a role in driving up oil prices, Zandi responded, ``Yes, I believe so, yes. The oil market has become a financial market. And it's affected by all kinds of speculators, momentum players, people just betting on prices increasing or falling, in this case, obviously, increasing. And so they ran in quickly and drove up the price. And that clearly has played a role. I mean, you don't see a $10 move in the price of oil without some financial speculation in-Ðvolved, as well.'' [PBS Online Newshour,Ð 6/6/08]

Gerry Ramm of the Petroleum Marketers Association of America Blamed Speculation for Driving Up Oil Prices. ``Excessive speculation on energy trading facilities is the fuel that is driving this runaway train in crude oil prices today. Excessive speculation is being driven by what Michael Masters of Masters Capital Management refers to as index speculators, as compared to traditional speculators.'' [Testimony of Gerry Ramm, Petroleum Marketers Association of America, before Senate Committee on Commerce, Science and Transportation, 6/3/08]

Acting Chairman of Commodity Futures Trading Commission Said the Oil Markets Are ``Ripe for Those Wanting to Illegally Manipulate the Market.'' Walter Lukken, Acting Chairman of the Commodity Futures Trading Commission, conceded that crude Ðoil markets are ``ripe for those wanting to Ðillegally manipulate the markets.'' [CNBC,Ð 06/17/08]

Former Director of Commodity Futures Trading Commission's Trade Division Michael Greenberger Said Speculation Went Beyond Supply-and-Demand Problem in Oil Market. Michael Greenberger, a former top staffer at the Commodities Futures Trading Commission, said, ``There can be no doubt that there is a supply-and-demand problem at work here. But many believe, including me, that there's a speculative premium that goes beyond what supply-and-demand factors dictate. And that's what could be drained with aggressive United States regulation.'' [McClatchy, interview of Michael Greenberger, 6/17/08]

Greenberger Calculated 70 Percent of Oil Market is Driven by Speculators, Rather Than Those With Commercial Interests. ``My calculation is right now that about--at least 70 percent of the U.S. crude oil market is driven by speculators and not people with commercial interests. Most of those speculators do not have spec limits. They can buy whatever they want.'' [Testimony of Michael Greenberger, Professor at University of Maryland Law School, before Senate Committee on Commerce, Science and Transportation, 6/3/08; McClatchy, 6/17/08]

Former Director of Commodity Futures Trading Commission's Trade Division Michael Greenberger Said Oil Speculation Adds 25-50 Percent to the Cost of Oil. When Michael Greenberger, a former top staffer at the Commodities Futures Trading Commission, was asked how much oil speculation increased costs per barrel of oil, he replied, ``Well, there have been various estimates--anywhere from 25 percent to 50 percent.'' [CBS News, 06/17/08]

Mrs. MURRAY. Mr. President, the Stop Excessive Energy Speculation Act of 2008 that the Senate is going to move to proceed to will shine a light on those trading markets. It will increase oversight and reporting on oil trading, and it will significantly improve the resources available to the Commodity Futures Trading Commission. While addressing speculation is not the silver bullet that will bring prices down at the pump, we do believe that by increasing our oversight and regulation, we will ensure that consumers are better protected in the months and years to come.

Unfortunately, as I mentioned earlier, our friends on the other side have their message down pretty pat now. They say no to any reasonable solutions we offer, and then they turn around and say we just need to drill more. We say fast-track our domestic production. They say no. We say increase the supply of oil now. They say no. We say accelerate investments in alternative energy to help break that addiction to oil. They say no. And now we say end excessive speculation. I hope they won't say no again.

Do they offer anything more than no? Well, yes. They say drill, drill, and drill--a plan that even their party's leaders said has mainly psychological benefits, a plan that even President Bush's own team says will not affect our oil prices, and a plan that will not produce a drop of oil for 7 to 10 years.

Unfortunately, their plan on that side is nothing more than a continuation of the Bush-Cheney big oil love affair that got us into this mess in the first place. Republicans seem committed to fattening big oil's bottom line. Well, Democrats are more worried about your bottom line.

The oil companies made $250 billion last year. It is time for us to deal with consumer prices. We have tried to do things the Republican way for 8 years now and unfortunately what we hear from them today is more gimmicks and tired old ideas, the same status quo.

With record gas prices and our economy spiraling deeper into recession, Democrats think it is long past time for a bold new direction. We hope our Republican counterparts will join us today and move this bill forward.

I yield the floor.

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