Cantwell Renews Push for Consumer Protections
Senator calls for vote on her consumer protection and transparency legislation following news of federal inquiry into possible oil market manipulation
WASHINGTON, DC – Tuesday, following a Wall Street Journal report that federal investigators are looking into possible manipulation of crude-oil and unleaded-gasoline markets by oil giant BP, U.S. Senator Maria Cantwell (D-WA) renewed calls for tougher consumer protections to guard against schemes to raise energy prices. According to news reports, the Commodity Futures Trading Commission is investigating BP and energy traders for possible crude oil market manipulation during 2003 and 2004. The suspect actions relate partly to trades in some over-the-counter energy commodities, which are beyond the reach of federal regulators, thanks to an “Enron loophole” in U.S. commodity trading laws that Cantwell has fought to close. According to the article, the U.S. Department of Justice is also looking into possible gasoline price manipulation by BP in 2002.
“This inquiry provides still more evidence that record gas prices and sky-high oil company profits may not be due solely to market forces,” said Cantwell. “We need more transparency and oversight so that American consumers can have confidence the prices they are being asked to pay are fair. I call on the Republican leadership to allow an immediate vote on my gas price gouging bill and on my legislation to rein in energy markets operating beyond the reach of regulators. Today’s record energy costs are taking hundreds of billions of dollars out of family pocketbooks and the bottom lines of businesses across the country. We need to act now.”
Earlier this year, Cantwell joined Senator Dianne Feinstein (D-CA) and Olympia Snowe (R-ME) in introducing bipartisan legislation (S.2642) to enhance transparency of energy commodity trading—up to 80 percent of which is currently taking place beyond the reach of federal regulators. This means trades on these markets often have no audit trail, and few restrictions on using insider information or market power to manipulate oil prices and boost profits.
Last year Cantwell also proposed legislation, now supported by nearly a third of the Senate, that would make gas price-gouging a federal crime. Her measure garnered 57 votes when it was considered last fall—including the support of 13 Republicans—but required 60 votes for Senate passage at the time. Cantwell’s legislation would outlaw gas price-gouging at all levels, impose tougher fines and criminal penalties on violators, give federal and state authorities new powers to ensure greater market transparency, and go after companies that manipulate oil and gas prices. Both pieces of the Cantwell legislation are expected to come up for consideration when Senate leadership agrees to take up legislation to reauthorize the Commodity Futures Trading Commission.
Cantwell has long worked to get to the bottom of years of rising fuel costs. At a hearing last November, Cantwell questioned oil company CEOs about below-average reserve capacities, unregulated trading markets, and gasoline exporting during times of record U.S. prices. In response, oil executives promised Cantwell they would provide data to answer her questions, but later failed to disclose much of the requested information. Cantwell has continued to push to get answers, and requested a Government Accountability Office investigation into fuel inventory practices, refining capacity, and market transparency.
Cantwell has been a consistent advocate of measures to lower gasoline prices and increase our nation’s energy independence including promoting greater use of domestically produced biofuels, developing a biofuels industry in Washington state, increasing the availability of flex-fuel vehicles and biofuel pumps, and improving national fuel economy standards. In June, Cantwell introduced her bipartisan Ten-in-Ten Fuel Economy Act (S.3543), which would increase combined corporate average fuel economy (CAFE) standards to 35 miles per gallon by 2017 for all passenger cars and light trucks, including sport utility vehicles. She has also sponsored comprehensive energy legislation (S.2829) legislation that provides specific legislative measures to reach a national goal of reducing domestic oil consumption equivalent to 40 percent of America’s projected imports in the next 20 years.
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