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WASHINGTON – U.S. Congressman Bart Stupak (D-Menominee) wrote today to Secretary of Energy Samuel Bodman requesting comments on legislation Stupak introduced to regulate excessive speculation in energy markets, a driving factor in skyrocketing energy costs. Stupak was following up on a commitment Bodman made at a February budget hearing to explain his position on Stupak’s Prevent Unfair Manipulation of Prices (PUMP) Act.
“While investors and speculators reap the rewards of unregulated energy markets, skyrocketing energy prices continue to squeeze Michigan families,” Stupak said. “Even as oil and gas prices hit record highs, this Administration continues to turn a blind eye to our nation’s energy problems.”
Stupak, a member of the House Energy and Commerce Committee and Chairman of its Subcommittee on Oversight and Investigations, held a hearing in December 2007 on the PUMP Act (H.R. 594). Economists testified that the bill would reduce the price of crude oil by as much as $20 to $30 a barrel. It is estimated that a gallon of gas drops 19 cents for every $10 decrease in the price of a barrel of oil.
There are currently two types of oil futures trading. Market trading takes place through the New York Mercantile Exchange (NYMEX) and is overseen through the Commodity Futures Trading Commission (CFTC). However, an increasing amount of oil futures trading occurs “over-the-counter.” This trading is conducted off the market, without any regulation or oversight by the CFTC.
“The PUMP Act would require all energy traders to play by the same rules,” Stupak said. “Without proper oversight, it is difficult to determine whether traders are basing their trades on market realities or just gaming the system to drive up prices.”
According to AAA Michigan, the statewide average for gas is $3.33 per gallon. That’s 66 cents higher than a year ago. The Upper Peninsula continues to have the highest gas prices in the state, with the average in Marquette at $3.50 per gallon. Crude oil and gasoline have both hit record high prices nationwide in the past month, with oil reaching $111 a barrel and the nationwide average for a gallon of gas reaching $3.29.
The PUMP Act has the support of 35 bipartisan cosponsors in Congress and Stupak continues to work with his colleagues to advance the legislation. In the letter to Bodman, Stupak notes that it has been eight weeks since the hearing on the Energy Department’s budget in which Bodman promised Stupak an answer to questions about the bill.
“I want to work with Secretary Bodman and my colleagues in Congress to pass this important legislation,” Stupak said. “As rising energy costs continue to put a strain on Michigan families, now is the time to address this important issue.” |
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![[News From Congressman Bart Stupak]](stupakpr.gif)
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