2008-03

Resolution Urging U.S Congress to Ban Excessive Energy Commodities Speculation

Senator Juan M. Pichardo

WHEREAS, Earlier this year the price of a barrel of oil reached and all-time high; and

WHEREAS, Top ranking oil executives have stated that they expect the price of oil to rise above $250 per barrel in 2009; and

WHEREAS, Studies have found that one quarter of the worldwide increase in energy costs was not due to changes in supply and demand; and

WHEREAS, A report of the U.S Senate’s permanent Subcommittee on Investigations of the Committee on Homeland Security and Governmental Affairs explained”…there is substantial evidence supporting the conclusion that the large amount of speculation in the current market has significantly increased prices;” and

WHEREAS, The Commodities Futures Modernization Act of 2000 has allowed speculators to buy and sell contracts for oil and other energy commodities, acting as middle-men and artificially increasing energy prices; and

WHEREAS, Since 2006, the Commodities Futures Trading Commission has allowed certain companies to conduct after-hours, unregulated, over-the-counter oil transactions via electronic trading terminals; and

WHEREAS, Numerous industry experts fear that such speculation is creating an “energy bubble” similar to the internet and housing bubbles that led to economic downturn over the past ten years; and

WHEREAS, An energy bubble has the potential to have even more dramatic effects on the U.S and world economy than previous bubbles because a great portion of the modern economy is driven by energy-intensive industries; and

WHEREAS, Local and International leaders have called for a “ban on speculation in the commodities market as a key to a new global financial order”

WHEAREAS, the rising cost of energy is already creating problems for the average American consumer, and millions of people worldwide, causing increasing poverty and higher prices for everyday items; making it increasingly difficult for families to afford food, heating, housing, and many other necessities.

THEREFORE LET IT BE RESOLVED, that NHCSL calls upon policy makers at all levels of government including but not limited to U.S Congress to stop excessive Energy Speculation by the Commodities Futures Trading Commission;

BE IT FURTHER RESOLVED THAT, that upon adoption, copies of this resolution be sent to members of the U. S. Congress and The Senate Committee on Homeland Security and Government Affairs.

This resolution was adopted on November 15, 2008, at the National Hispanic Caucus of State Legislators Executive Committee Annual Meeting held in Las Vegas, Nevada.

Representative Joseph Miró (DE), NHCSL president

Sponsored By: Senator Juan M. Pichardo