Senate Advances Bill Curbing Oil Speculation

Washington, D.C. (AHN) - Democrats and Republicans in the Senate voted Tuesday to continue debate on a bill limiting speculation in oil markets, but quickly found themselves in a standoff after disagreeing on an offshore drilling provision.

Senators voted to 94-0 for cloture on a measure requiring the Commodity Futures Trading Commission to curb excessive speculation in energy markets. Under the bill, traders would have to provide more information about exchanges to avoid price manipulation.

Lawmakers are in disagreement about what amendments to include in the bill. Democrats are opposing Republican efforts to include a provision lifting the ban on coastal oil exploration. Senate Majority Leader Harry Reid (D-NV), the main sponsor of the measure, proposed to limit amendments to one from each party, but Republicans insisted for a full debate.

"They can offer their drilling amendment, and we would offer our own alternative. Both measures would receive a vote. That is how the legislative process is supposed to work," Reid had said.

Senate Minority Leader Mitch McConnell (R-KY) was quoted in the Boston Globe, "The American people will not accept a timid approach to such a major problem. This is the biggest issue in the country right now, by far."

Democrats believe excessive speculation in energy markets is causing the steep rise in oil prices, but Republicans contend that supply and demand is the problem and that opening up new lands for drilling is the only solution.

Reid said earlier this month he will let a vote on drilling reach the floor. He called the president's call to lift the moratorium on offshore drilling "a political gimmick" and said oil companies should first explore the 68 million acres of coastal land already leased to them.

White House Press Secretary Dana Perino said Tuesday lawmakers should focus on legislation increasing domestic oil resources.

"Speculation does cause some volatility in the day-to-day market fluctuations of oil prices. But we believe that the root causes of high energy prices is supply and demand," Perino said.

"So while they can have the vote on speculation and they can move forward on that, we think that it is critical that we start focusing on the resources that we have in our own country and the ways that we can access those resources in environmentally friendly ways, including oil shale, offshore oil drilling and opening up a small bit of the Alaska National Wildlife Refuge to drilling," she added.

Offshore drilling is prohibited by a legislative moratorium adopted in 1981 and an executive order issued by former President George H.W. Bush in 1990. President George W. Bush lifted the executive order on July 14, a month after he called on Congress to end the legislative ban.