A vote by Representative Scott Garrett that didn't get mentioned by anybody was his vote for the Energy Markets Emergency Act of 2008.
The bill empowers the Commodity Futures Trading Commission to go after those artificially inflating the cost of oil through speculation. I've been very critical of Congress for it's inaction dealing with speculation within the oil markets and the impact it's having on prices at the pump.
While this doesn't deal with the favorable taxation that have brought hedge funds and day traders into the oil markets; it is a very good first step in reversing the trend and I'm glad to see Garrett supported it.
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In terms of commodities futures, there is always a buyer and seller on both sides of the trade. Warren Buffet, who is a democrat, said that the high oil price is the result of supply and demand, not speculation. He also laughed when asked a question about a windfall profits tax. How about the United States using its technology to drill for oil? World demand for oil has greatly increased. This bill is more populist nonsense. It will not reduce the price of oil. People conserving as well as increasing supply will reduce the price of oil. Why does this country have no energy policy and has had no energy policy for over 30 years? I am wondering about this blog. I just think it is another way to defeat Congressman Garrett. I am sorry but Dennis Schulman does not represent my views. He is another New Jersey liberal democrat.
Appreciate the comment. The reason the US isn't drilling for oil is because we're not in the oil business, private companies are. They hold the leases, and they're not going after the proven reserves under their control, thus limiting supply. That, refining capacity, consumption, a weak dollar, and yes, speculation, all are contributing to this.
However, this has all markings of a bubble in terms of rapid escalation in prices where no consistent correlation can be drawn between supply & demand factors.
We had the beginnings of an energy policy with the Executive Order signed by Clinton to green the buildings and the auto fleets of the government. It was scrapped by Bush. Special interests have also often squashed efforts to legislate conservation and efficiency.
As far as wondering about the blog, I’ve done nearly 400 posts at this point. Yes, 60% have been about Garrett and a number of them have called into question things he’s done or said.
I’m an idealist who wants their elected officials to be held accountable. I was here long before Shulman entered the race and I’ll still be here regardless of who wins on Election Day (barring moving out of the District).
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