Those that live in the DFW area are fortunate to have Ed Wallace (
Ed Wallace's Inside Automotive) keeping an eye on the petrochemical industry. He hosts a automotive related show on Saturday mornings (
Talk Radio 570 KLIF). This AM he had special guest Professor Michael Greenberger of The University of Maryland and also a former board member of the Commodities Futures Trading Commission (CFTC). They were elaborating on
the current mess in deregulated energy futures and how energy prices can be manipulated by the UNREGULATED Intercontinental Exchange (ICE) based out of Atlanta (but, officially headquarted in London).
The Intercontinental Exchange took great exception to his articles in The Fort Worth Star Telegram. See these links for the articles in question:
ICE, ICE, Baby | Ed Wallace | Star-Telegram.com
and Part II:
ICE, ICE, Baby, conclusion | Ed Wallace | Star-Telegram.com
Things change. This past week the Commodities Futures Trading Commission moved to expand surveillance of ICE Futures Europe to improve oversight of this exchange, "to ensure they reflect fundamental economic forces of supply and demand." In spite of ICE's insistence that his reporting was incorrect, there is now validation in the CFTC's new position. You can read the entire story of the CFTC's changes in this link, starting at paragraph 5.
TheStar.com | Business | U.S. regulators probe crude oil market
High fuel prices are NOT a supply/demand issue.
An excerpt from Ed's article:
"In the past month we have added 11.9 million barrels of oil into our stock reserves, giving us 32.3 million more barrels of oil than we had on hand January 1. On May 5, we found out that for the second time in as many years, Iran was storing its excess crude oil on tankers in the Persian Gulf, because it had run out of storage space in the desert and was awaiting buyers for its heavy crude. That same day Saudi Arabia cut the discount price for its Arabian Heavy crude to $ 7.45 hoping to entice more buyers for immediate delivery. We didn't hear that news, either."
Prof. Greenberger testified in front of the House Committee on Energy and Commerce on December 14 of last year. Under discussion that day was the manipulation of the energy markets and prices, but Prof. Greenberger added these comments: "Three, four months from now, you're going to have a hearing on the subprime meltdown, and you're going to find that the very same legislation [deregulating energy] deregulated something called collateralized debt obligations (CDOs)." That legislation directly ties the mortgage meltdown to the high price of energy today.
It was called H.R. 5660, the Commodities Futures Modernization Act of 2000. At first this bill went nowhere in the House, not even up for debate. Then, a few months later, late one night a 242 page bill written by Wall Street lawyers, with the exact same as the former house bill, was quietly added to an 11,000 page appropriations bill, and the Enron loophole was created. The power behind that bill was one Texas Senator, one Texas Congressman and their wives. As a Texan - I am embarrassed that they were involved.
What can be done to remedy the problem?? Get in touch with your representatives and let them know you are sick and tired of high energy costs and artificial manipulation of the energy markets without regulation.
re.ac.tor
06-01-2008, 03:49 AM
High Fuel Prices................the TRUTH
High Fuel Prices
Somehow I thought road use and fuel taxes went in part to highway maintenance. Enough about the roads, we were speaking of fuel weren't we. Check out the webpage below, it is and interesting site.
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