09.15.08

Maria's Monday Memo

Renewing The Charge to Stop Excessive Oil Speculation
 
Last Wednesday, I renewed efforts to crack down on irresponsible oil speculators, raising questions about speculators’ outsized influence over the energy futures market, the cost of energy, and perhaps even the federal agency responsible for regulating them. This week is”energy week" in Congress, and there will be hearings to address volatile oil speculation. Senator Dorgan (D-ND), Chair of the Energy and National Resources Subcommittee, and I pointed to a new independent report that outlines how speculators drove oil prices to record levels this summer, and then suddenly switched their position and “began a mass stampede for the exits” starting on July 15. Issued by Michael W. Masters of Masters Capital Management and Adam K. White of White Knight Research & Trading, the report uses data from the Commodities Futures Trading Commission (CFTC), the Energy Information Administration, and investment sources to show how speculators, not supply and demand or a weak dollar,  were the leading cause for  driving up energy prices. Eighty percent of Americans believe that oil speculators are manipulating the price of oil, and Mr. Masters’ report proves that they are right. Americans won’t stand for being held up at the pump by these Wall Street scoundrels every time they fill up their gas tank.
 
 
Pentagon’s Decision to Cancel Tanker Competition
 
In addition to cracking down on oil speculation, last Wednesday, the Pentagon decided to cancel the tanker competition leaving the decision to a new Administration. I know a restart is better than a false start and a false start is where the Air Force was headed.  Hopefully, a new start will be a fair process to fully understand the requirements and give contractors the proper time to bid. I am glad the Department of Defense recognized the need to allow enough time to consider the new requirements.  I will continue to push the Air Force and the Defense Department to make sure there is a fair, open and transparent process as it relates to requirements and the RFP bid process.  And I will continue to fight to ensure taxpayers get a fair deal for the plans that the Air Force needs. Our men and women in uniform need new tankers, which are vital to the United States’ national security.  I will continue to press to ensure there is a fair rebid of the tanker contract and that Defense Department gets it right for both the American taxpayer and war fighter.  All costs must be taken into account and all national security implications must be fully reviewed and considered.
 

CFTC Report Fatally Flawed
 
Last Thursday, I called claims by Commodities Futures Trading Commissioner Walter Lukken fatally flawed when he said during a House Agriculture Committee hearing that there is no strong evidence that speculators are driving up oil commodity prices. In a new report issued last week, the CFTC said, it was not able to “quantify the amount of speculative trading occurring in the futures markets.” However, since July 7, 2008, when Congress began debating steps it would take to curb oil speculation, prices began to fall, resulting in $6.7 billion in savings at the pump for American consumers. Continued inaction by the CFTC to bring the light of day to unregulated markets is unacceptable. By not properly policing the oil markets, the CFTC is turning a blind eye to artificial volatility.  They may be the only group in America that believes all is well in the oil markets. American consumers have saved $6.7 billion at the gas pump since Congress started acting. Now it’s time for the CFTC to step up and permanently rein in excessive speculation. I will continue to place a hold on the nominations of CFTC Commissioners Lukken, O’Malia, and Chilton.
 
 
Energy Committee Passes Pacific Northwest Scenic Trail Legislation
 
The Senate Energy and Natural Resources Committee passed a bill I sponsored last Thursday. This bill will designate the 1,200 mile Pacific Northwest Scenic Trail as a National Scenic Trail.  National Scenic Trails provide recreation, conservation, and delight of significant scenic, historic, natural, or cultural qualities. Representative Norm Dicks introduced identical legislation, the Pacific Northwest National Scenic Trail Act of 2008, which will promote the protection and maintenance of the Pacific Northwest Trail.  Washington state, and the Pacific Northwest in general, is home to some of the most pristine nature and breathtaking scenery this country has to offer. The Pacific Northwest Trail, zigzagging from the Continental Divide to the Pacific Coast, offers all of these spectacular views. This is one more important step in to designate the Trail as a National Scenic Trail, which will give it the proper recognition, bring benefits to countless neighboring communities, and promote its protection, development, and maintenance. I have long emphasized the need to protect and promote recreation on America’s public lands, including in our National Parks and National Forests. 
 
 
The Seventh Anniversary of the Attacks of September 11
 
This past Thursday, we honored all those who lost their lives in the September 11th terrorist attacks, seven years ago. We still feel the pain and loss of such a horrific day.  While some memories may fade over time, we still honor the spirit of those who lost their lives, and those who gave their lives for others. Our nation’s most enduring values were attacked on that day. We have a responsibility to those who died, to never let this tragedy be repeated. We must continue protecting our country with policies that will make our communities safer. My thoughts and prayers remain with the families who lost loved ones on that fateful day; and we continue to cherish the memory of those we lost.
 
 
 
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