Oil speculation bill fails
A bill proposed by Senate Democrats to reign in excessive speculation in the oil futures market failed this morning because it fell short of the 60 votes it needed to end debate and move to a vote on the measure. Now the Senate will move on to other legislation leading up to its break for an August recess.
A key point of contention was off-shore oil drilling. Republicans were adamant that any energy bill needed to include the lifting of moratorium on off-shore oil drilling, while Democrats said there was no need to open protected areas when plenty of land was already available for lease, or already leased and not being produced.
"Many experts agree that speculation on Wall Street is having a serious effect on the price of oil. I believe this bill would have cracked down on some of that speculation and helped bring down oil prices," Sen. Jeff Bingaman said in a press release. "I’m disappointed that it failed."
Sen. Pete Domenici's spokesperson, Matt Letourneau, told the Independent earlier this week that while Domenici wasn't opposed to regulating oil futures speculation per se, he would oppose this bill because it didn't also include lifting the moratorium on off-shore oil drilling.
Domenici condemned Senate Democrats for blocking the ability of Republicans to add more than one amendment in a press release Wednesday, which meant an off-shore oil drilling could not be introduced and debated on the floor. Today he voted no to end debate and move to a vote on the speculation bill.
Because the speculation bill failed, an amendment offered by Bingaman won't immediately be considered. In addition to energy conservation measures, his amendment would have encouraged energy companies to drill on 68 million acres of land already leased, by giving the Secretary of the Interior authority to shorten lease terms, raise rental rates, and require companies to comply with progress benchmarks. It also would have accelerated the process for leasing land already available for drilling.
“New Mexicans are worried about high energy prices. So it’s my hope that we will find another opportunity to consider this important proposal,” Bingaman said regarding his amendment.
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