Whitfield to Help Lead Congressional Hearing Examining Energy Crisis | News | Congressman Ed Whitfield

News | Congressman Ed Whitfield | United States Representative

Whitfield to Help Lead Congressional Hearing Examining Energy Crisis June 13, 2008 WASHINGTON - U.S. Representative Ed Whitfield has been tapped to help lead a congressional hearing examining speculation in the energy market, which many analysts believe is driving up the costs of petroleum and producing record-breaking prices at the pump by as much as 38 percent.

"There are a number of factors contributing to the astronomical prices folks in the First Congressional District are being forced to pay to fill up their gas tanks and heat and cool their homes - and this hearing will examine whether speculators in the oil market are one of them," Whitfield said. "This hearing will provide an important opportunity to examine the effects of manipulation and speculation in the energy market and consider what steps are necessary to drive down prices."

Whitfield will help lead a hearing being held on Monday, June 23rd by the House Subcommittee on Oversight and Investigations. The hearing is entitled "Energy Speculation: Is Greater Regulation Necessary to Stop Price Manipulation - Part II." The hearing will examine the effects of manipulation and speculation in futures markets and consider whether additional regulation is necessary to prevent market manipulation.

Futures contracts for energy are traded on the New York Mercantile Exchange (NYMEX), which is regulated by the Commodity Futures Trading Commission (CFTC). Due to a loophole included in the Commodity Futures Modernization Act of 2000, large energy traders-those with at least $10 million in net worth-can trade economically-linked contracts on largely unregulated exempt commercial markets, most notably the Atlanta-based Intercontinental Exchange (ICE).

By trading on unregulated "dark markets," traders can avoid CFTC's rules, which are in place to prevent price distortions or supply squeezes. This makes it difficult for regulators to detect excessively large positions, which could lead to price manipulation. Whitfield has sponsored legislation to discourage energy market speculators and prevent excess speculation in currently unregulated energy markets.

Whitfield has been leading an effort in Washington to ease the burden of skyrocketing gasoline prices on Kentucky drivers by introducing legislation which would provide a tax rebate to commuters who have been forced to pay record-breaking prices at the pump and provide a long-term solution to the nation's energy crisis. Additionally, Whitfield has sponsored legislation which would encourage the development of alternative fuels such as ethanol, coal-to liquids and nuclear power; repeal Section 526 of the 2007 Energy Bill which bars the government from purchasing abundant alternative fuels; and encourage the building of new domestic refineries.

Back to headlines