Energy Costs

Again a disclaimer that the following is not my idea but as a follow up to an earlier post on oil costs, this is the only option that is a viable way to control energy costs, otherwise our fuel prices wil just continue to skyrocket.

I constantly receive tips on how to make the oil companies “Knuckle under”. They don’t work. Here's something that might really work. The biggest problem?: “Some $260 billion is invested in commodity funds, 20 times the amount in 2003”, the Economist May31st, 2008.



This is money chasing money. Anywhere from $30.00 to $50.00 of the current price of a barrel of oil on the commodities market is due to speculation. Speculators are adding at least 25% to the cost of every gallon of gasoline, propane and heating oil. President Bush can end that in a minute with a National Security directive that forbids speculation on energy commodities (heating oil, propane, gasoline, diesel, etc), Congress can end it by law. If only legitimate buyers (energy dealers) and sellers (energy producers) are allowed to buy and sell energy products, prices will drop substantially and more accurately reflect real supply and demand. Some of these speculators are actually the countries selling us oil!



The New England Fuel Institute, the Maine Oil Dealers Association, the NH Fuel Dealers Association and other groups have been lobbying unsuccessfully for an end to speculation in energy commodities. We agree. Cutting speculators and hedge funds out of the market will cut prices to consumers like you and me.



This is everyone's fight; oil in New England, propane in the Midwest, natural gas in our cities and gasoline for the cars we drive; they are all traded and speculated on the commodities market. We've created a Web Page to lobby to ban speculators from the energy market. Go to http://www.otchoice.com/petition.asp and a) sign the petition and b) if you wish to, send an email or contact your Congressional representative. The timing is right, the Homeland Security & Governmental Affairs Committee is considering a bill right now to limit speculation in oil & food. The question is, are we going to do something about it or just sit back and take it?



Please Sign the petition and send this to everyone you know. If everybody calls and/or emails their US Senators, we WILL see some changes.