Pain at the Pump: John Sununu Votes Against Curbing Reckless Speculation on the Price of Oil, Tax Credits for Renewable Energy as New Hampshire Families Pay More than $4 Per Gallon for Gas
Tuesday June 10, 2008

Sununu votes against increased accountability and transparency in oil futures trading market, tax incentives to develop renewable energy industries

(Manchester, NH) – Today, Senator John Sununu voted against a series of measures to curb the reckless Wall Street speculation that is driving up the cost of gas for New Hampshire families and against tax incentives to promote energy independence.  At a time of record high gas prices in New Hampshire and around the country, Sununu today voted against increased transparency and accountability in oil futures trading, against prohibiting traders of US crude oil on offshore markets from evading limits on speculation and against requiring the Commodities Futures Trading Commission to increase the margin requirement for oil futures trades.  He also voted against the Renewable Energy and Job Creation Act, which would have provided tax breaks for middle class families and tax incentives to develop alternative energy sources.

 

"While New Hampshire voters are struggling to afford $4-per-gallon gasoline costs, John Sununu voted today to protect the interests of billion dollar hedge funds and Wall Street traders over middle class families," said Jeanne Shaheen, former Governor and current candidate for US Senate.  "We need leaders who won't just be part of the problem, but who will fight for real solutions for New Hampshire families.  We must crack down on reckless Wall Street speculation that is driving up the cost of gas and we should provide tax breaks to develop alternative sources of energy.  We need a new direction in Washington."

 

Even as John Sununu continues to deny the impact of Wall Street speculation on the price of oil, the Commodities Futures Trading Commission, the regulatory body that oversees futures trading on oil, announced that it is six months into a wide-ranging investigation of speculation and market manipulation in oil markets given the unprecedented volatility we have seen over the past few months. [Associated Press, 5/29/08]  And over the last few weeks, economists, analysts and even former hedge fund managers testified before the Senate – some before Sununu's own committee – that speculation is adding at least $40 to the price of a barrel of oil. [Washington Post, 6/6/08]

 

Over the past months as Jeanne Shaheen has traveled around New Hampshire talking with voters, she has advocated proposals to crack down on reckless speculation and market manipulation, including:

 

 *Close the Enron loophole.  Supply and demand should drive the price of oil, not speculation.  The Enron loophole allows large energy traders such as hedge funds to trade on an electronic exchange with little oversight.
 
*Require transparency on any foreign exchange of US energy commodities. Those who trade US energy commodities on foreign exchanges should be required to comply with large trader reporting requirements.  

*Create an Oil and Gas Market Fraud Task Force to investigate allegations of oil and gas market manipulation and fraud, similar to the Corporate Fraud Task Force established in 2002 in the wake of the Enron scandals.