BERKLEY VOTES TO CURB OIL SPECULATION

Seeks to Protect Nevadans From More Price Spikes at the Gas Pump

(September 18, 2008 -- Washington, D.C.) Congresswoman Shelley Berkley today voted to protect consumers and lower energy costs by curbing speculation in the oil market. Experts blame lax regulations and lax enforcement by the Bush administration for failing to protect the nation from oil speculators allowed to profit at the expense of families paying record prices at the gas pump.

“Combined with our clean energy package, this bill is meant to help families save at the pump by cracking down on run-away oil speculation that experts say has contributed to higher gas prices,” Berkley said.

“By closing the Enron loophole and strengthening enforcement we can prevent market manipulation. Leading experts have testified that excessive speculation we are out to end with this legislation may be responsible for adding another $20 to $60 to the price of oil. While that’s led to record profits for oil companies, it has hurt families in Las Vegas and the Valley’s economy and that is why we must act today to end this rip-off,” said Berkley.

A new independent study by Masters Capital Management found that speculation by large investors was a primary reason for the surge in oil prices during the first half of the year.

H.R. 6604, The Commodity Market Transparency and Accountability Act, takes crucial steps to curb excessive speculation in the energy futures markets, including:

• Tighter Oversight: Makes offshore markets trading in the U.S. follow the same rules as U.S. exchanges. About 30 percent of U.S. oil futures trades fly below the regulatory radar because they are transacted on a U.S. exchange that works through a subsidiary in London.

• Stronger Limits: Requires the Commodity Futures Trading Commission (CFTC) to set rules to limit the ability of trades to distort the market.

• More Enforcement to Prevent Market Manipulation: calls for a minimum of 100 full-time employees to strengthen enforcement, to prevent manipulation and to prosecute fraud.

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