End Oil Subsidies – An All-Of-The-Above Approach to American Energy
These days, we’re getting another painful reminder why developing new energy is so important to our future. Just like they did last year, gas prices are starting to climb. Only this time, it’s happening earlier. And that hurts everyone – everyone who owns a car; everyone who owns a business. It means you have to stretch your paycheck even further. Some folks have no choice but to drive a long way to work, and high gas prices are like a tax straight out of their paychecks.
You know there are no quick fixes to this problem, and you know we can’t just drill our way to lower gas prices. If we’re going to take control of our energy future and avoid these gas price spikes down the line, then we need a sustained, all-of-the-above strategy that develops every available source of American energy – oil, gas, wind, solar, nuclear, biofuels, and more. We need to keep developing the technology that allows us to use less oil in our cars and trucks; in our buildings and plants. That’s the strategy we’re pursuing, and that’s the only real solution to this challenge.
Now, we absolutely need safe, responsible oil production here in America. That’s why under my Administration, America is producing more oil today than at any time in the last eight years. In 2010, our dependence on foreign oil was under 50% for the first time in more than a decade. And while there are no short-term silver bullets when it comes to gas prices, I’ve directed my administration to look for every single area where we can make an impact and help consumers in the months ahead, from permitting to delivery bottlenecks to what’s going on in the oil markets.
President Obama 3/17/12 Weekly Address
At a time when instability in the Middle East is contributing to rising global oil prices that impact consumers at the pump, it is critically important to give American families confidence that illegal manipulation, fraud and market rigging are not contributing to gas price increases.
President Obama has already taken significant action to step up oversight of oil markets and close dangerous loopholes that for too long allowed energy traders to operate in the shadows. Early on in the Administration, the Commodity Futures Trading Commission (CFTC) moved to close the “Enron” and “London” loopholes, which previously allowed traders to evade oversight by using electronic and overseas platforms. Through Wall Street Reform, the President fought for new position limits to ensure that no single trader can manipulate oil markets and to enhance the CFTC’s anti-manipulation authorities. And at the President’s direction, the Attorney General has been working to ensure that enforcement agencies are exercising their full authorities through the Oil and Gas Price Fraud Working Group. (See Appendix for full record).
Today, the Administration is going further – announcing new steps to strengthen oversight of energy markets while calling on congress to pass a package of measures that would deter illegal behavior and hold accountable those who manipulate markets for financial gain at the expense of consumers. Congress should act immediately on these measures to ensure that illegal manipulation by financial traders is not contributing to prices at the pump.
The President’s Five-Part Plan Includes:
1. Requesting Immediate Funding to Put More “Cops on the Beat” Overseeing Oil Markets
2. Funding Critical Technology Upgrades in the Oversight and Surveillance of Energy Market Activity
3. Substantially Increasing Civil and Criminal Penalties for Manipulation in Key Energy Markets
4. Empowering the CFTC to Raise Margin Requirements in Oil Futures Markets
5. Taking Immediate Steps to Expand Access to CFTC Data to Better Understand Trading Trends in Oil Markets
CRACKING DOWN ON MANIPULATION IN OIL MARKETS
Details of the Administration’s Five Part Plan:
1. Immediate Funding to Put More “Cops on the Beat” Overseeing Oil Markets
2. Critical Technology Upgrades in the Oversight and Surveillance of Energy Market Activity
3. Increased Civil and Criminal Penalties for Manipulation in Key Energy Markets:
4. New Authorities for the CFTC to Raise Margin Requirements in Oil Futures Markets
5. Immediate Steps to Expand Access to CFTC Data to Better Understand Trading Trends in Oil Markets
Contact your Congress person to pass a package of measures that deters illegal behavior in the oil market!