pearlpro
Expert Expediter
Have you written your congressman, or representative to see WHY oil prices are so high, Here in this letter Senator Dick Durbin makes it clear FUTURES TRADING is the reason why, and the commission charged with reeling this in is in effect a Paper tiger with no teeth, maybe its time for some letters.
Thank you for contacting me about increasing gasoline prices. I appreciate hearing from you and share your concern about this issue.
Today’s high fuel prices cannot be explained by the market interplay between supply and demand alone. Excessive speculation and manipulation in energy commodity markets may be a significant factor in higher prices, and the Commodity Futures Trading Commission (CFTC) does not have the resources or the authority to address this problem fully.
The gas pump is just one place Americans are being hit by gas prices. Taxpayer dollars are provided to big oil companies in the form of subsidies. Taxpayer dollars also are allocated to pay interest on the money the U.S. borrows from foreign countries, such as China, to pay for these subsidies.
Mergers among the large oil companies have weakened real competition and the accompanying pressure to lower prices and profits, denying Americans the lowest fuel prices they would receive in a truly free market. Five oil companies currently enjoy some of the largest profits in U.S. business history without the competition that would force a moderation in their pricing. In the last five years, these oil companies have used over 71 percent of profits to boost their share prices compared to 12 percent on exploration and new development costs which could help lower gas prices.
I recently co-sponsored S. 940, the Close Big Oil Tax Loopholes Act, introduced by my colleague, Senator Bob Menendez of New Jersey. The bill would eliminate large tax breaks and deals on drilling rights that cost the federal government and taxpayers billions of dollars. S. 940 would save Americans over $4 billion a year – funds that could be allocated to reduce our deficit. Although this bill was voted down by the Senate on May 17, I am hopeful its provisions may be incorporated into another measure.
To gain real energy independence and break our addiction to oil, we need to continue to invest in energy innovation and research. That means reducing oil demand and making our means of transportation more efficient, manufacturing clean and renewable energy technologies such as wind and solar power, and, in accordance with our needs and with changes in technology, reforming appropriate safety and environmental standards.
I will continue to look for ways to address the high price of gasoline in addition to promoting the development of energy efficient and renewable energy technology.
Thank you again for your message. Please feel free to keep in touch.
Sincerely,
Richard J. Durbin
United States Senator
Thank you for contacting me about increasing gasoline prices. I appreciate hearing from you and share your concern about this issue.
Today’s high fuel prices cannot be explained by the market interplay between supply and demand alone. Excessive speculation and manipulation in energy commodity markets may be a significant factor in higher prices, and the Commodity Futures Trading Commission (CFTC) does not have the resources or the authority to address this problem fully.
The gas pump is just one place Americans are being hit by gas prices. Taxpayer dollars are provided to big oil companies in the form of subsidies. Taxpayer dollars also are allocated to pay interest on the money the U.S. borrows from foreign countries, such as China, to pay for these subsidies.
Mergers among the large oil companies have weakened real competition and the accompanying pressure to lower prices and profits, denying Americans the lowest fuel prices they would receive in a truly free market. Five oil companies currently enjoy some of the largest profits in U.S. business history without the competition that would force a moderation in their pricing. In the last five years, these oil companies have used over 71 percent of profits to boost their share prices compared to 12 percent on exploration and new development costs which could help lower gas prices.
I recently co-sponsored S. 940, the Close Big Oil Tax Loopholes Act, introduced by my colleague, Senator Bob Menendez of New Jersey. The bill would eliminate large tax breaks and deals on drilling rights that cost the federal government and taxpayers billions of dollars. S. 940 would save Americans over $4 billion a year – funds that could be allocated to reduce our deficit. Although this bill was voted down by the Senate on May 17, I am hopeful its provisions may be incorporated into another measure.
To gain real energy independence and break our addiction to oil, we need to continue to invest in energy innovation and research. That means reducing oil demand and making our means of transportation more efficient, manufacturing clean and renewable energy technologies such as wind and solar power, and, in accordance with our needs and with changes in technology, reforming appropriate safety and environmental standards.
I will continue to look for ways to address the high price of gasoline in addition to promoting the development of energy efficient and renewable energy technology.
Thank you again for your message. Please feel free to keep in touch.
Sincerely,
Richard J. Durbin
United States Senator
