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Speculation bill: Can somebody help me with this?
07/22/08
Let me see if I understand this:
Pelosi said more drilling would take a decade to have an impact on gas prices, and she argued that a faster way to lower gas prices would be to release oil from the 700 million-barrel Strategic Petroleum Reserve.
More oil won't have an impact on prices for years to come. Therefore, let's pass a law against "oil speculation." Whew!
From here.
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1 comment
Comment from: Henry Gomez [Visitor] · http://bucl.org
We need a short term, mid term and long term strategy. As far as releasing oil from the SPR, Newt Gingrich proposed this a while back when he introduced the Drill here, drill now petition. The logic is that it will shock the speculators out of the oil market in the short term because 100 million barrel bursts of new petroleum on the market will lower prices and have them running for the doors. There are 700 million barrels presently in the SPR so this can be done periodically.
In the mid-term, closing the loopholes that allow speculators and institutional investors that don't really handle oil to run up the market price of oil is called for. Also policies that strengthen the dollar will have the effect of lowering oil prices. Dollar depreciation could account for up to 30% of the recent hike in crude oil prices.
And in the long-term we need to drill. The prospect of additional future supplies drives down oil futures prices and falling oil futures prices lead to lower prices now.
07/22/08 @ 15:08
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