Pelosi, House Democrats to FTC: Investigate Record Gas Prices

Press Releases Contact: Brendan Daly/Nadeam Elshami 202-226-7616 For Immediate Release 04/25/2008 Pelosi, House Democrats to FTC: Investigate Record Gas Prices

Washington, D.C. – Speaker Nancy Pelosi and House Democratic leaders sent the following letter today to Federal Trade Commission (FTC) Chairman William E. Kovacic urging him to investigate record gas prices. The Energy Independence and Security Act of 2007 gives the FTC the authority to probe possible market manipulation of gas prices, but to date, the Commission has failed to exercise its power to protect consumers from skyrocketing energy costs.

In light of nationwide consumer concern about the record prices for oil and gas at the pump, we urge the Federal Trade Commission (FTC) to immediately initiate a rulemaking to implement the market manipulation authority mandated by Congress in the Energy Independence and Security Act of 2007 (P.L. 110-140). Congress provided this authority to the FTC four months ago -- but to date, the FTC has failed to exercise its power to protect consumers from skyrocketing energy costs. Recent price volatility and investor speculation in the oil market require the diligent oversight Congress called for, especially when oil prices break records daily, hitting $119 per barrel this week.

The Energy Independence and Security Act, which became law last December, directs the FTC to ensure that the U.S. petroleum market is free from price or supply manipulation. Congress gave you the power to levy tough penalties against those who might seek to profit from such illegal activities. Utilized effectively, this new authority will substantially strengthen consumer protections against high energy prices. More importantly, vigorous enforcement will help lower and stabilize prices, increase market transparency, and provide Americans with confidence that retail gasoline and diesel prices are free from the influence of anticompetitive practices and the exercise of market power.

This new authority granted to the FTC is modeled on the anti-manipulation authorities utilized by other agencies such as the Securities and Exchange Commission (SEC) and the Federal Energy Regulatory Commission (FERC). Specifically, Title VIII, Subtitle B of the Energy Independence and Security Act is modeled on section 10(b) of the Securities Exchange Act of 1934 for which a substantial body of case law has been developed over the last half century. In fact, the Supreme Court has compared this body of law to “a judicial oak which has grown from little more than a legislative acorn.” Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723, 737 (1975).

FTC has acknowledged that oil and gas markets are susceptible to manipulation. In 2006, the FTC’s Congressionally-mandated investigation of gasoline prices after Hurricane Katrina acknowledged the possibility that the petroleum industry can manipulate prices by reducing production, distribution, or inventories or increasing margins.

We need aggressive oversight to ensure such actions are not presently occurring, and to punish them if they are cheating consumers. The FTC must no longer delay action on implementing the mandate from Congress to stop market manipulation as American families and businesses struggle to deal with record gas prices.

Not so. Basis last Monday, price of wholesale gasoline on the same date each year has risen 229.74% since 2003. Part of this rise is constituted by the front-end amortising of costs associated with switching from RFG II to RBOB.

Wholesale pricing is the only meaningful comparison when it comes to motor gasoline, because state and local taxes vary widely, as well as costs associated with state and local ''boutique fuel'' requirements.

The column in the table below that will be of interest to you is the 'end price' column. Stats courtesy of Time & Timing, via NYMEX.

History of buying May Gasoline from 04-20 to 04-21, contract years 2003 through 2008

   start     prev    start    --interim--    end     end    -- results --    yr %   max %  max %
    date    10 day   price    high    low   date    price   1-yr      cum   result  highr  lower

2003-04-21   4.17%   90.40   90.40   90.40  04-21   90.40   -0.15    -0.15  - 0.17   0.00   0.00  
2004-04-19  10.06%  116.50  116.50  112.05  04-21  113.43   -3.22    -3.37  - 2.76   0.00   3.82  
2005-04-19  -5.37%  157.01  162.40  157.00  04-21  162.00    4.84     1.47  + 3.08   3.43   0.01  
2006-04-19  15.01%  223.94  225.50  216.00  04-21  223.84   -0.25     1.22  - 0.11   0.70   3.55  
2007-04-19  -1.88%  208.88  208.88  208.88  04-19  208.88   -0.15     1.07  - 0.07   0.00   0.00  
2008-04-21   7.39%  298.09  298.09  298.09  04-21  298.09   -0.15     0.92  - 0.05   0.00   0.00

Because, contrary to the Neo Isolations dogmas of the Paulbots, Iraq has never been about Oil

Why Iraq

One of the really infuriating things in modern politics is the level of disinformation, misinformation, demagoguery and out right lying going on about the mission in Iraq. Democrats have spent the last 3+ years lying about Iraq out of a political calculation. The assumption is that the natural isolationist mindset of the average American voter, linked to the inherent Anti Americanism (what is misnamed the “Anti War movement”) of the more feverish Democrat activists (especially those running the US’s National “News” media) would restore them to national political dominance. The truth is the Democrat Party Leadership has simply lacked the courage to speak truth to whiners. The truth is that even if Al Gore won the 2000 election and 09-11 still happened we would be doing the EXACT same things in Iraq we are doing now.

Based on the political situation in the region left over from the 1991 Gulf War plus the domestic political consensus built up in BOTH parties since 1991 as well as fundamental military strategic laws, there was NO viable strategic choice for the US but to take out Iraq after finishing the initial operations in Afghanistan.

To start with Saddam’s Iraq was our most immediate threat. We could NOT commit significant military forces to another battle with Saddam hovering undefeated on our flank nor could we leave significant forces watching Saddam. The political containment of Iraq was breaking down. That what Oil for Food was all about. Oil for Food was an attempt by Iraq to break out of it’s diplomatic isolation and slip the shackles the UN Sanctions put on it’s military. There there was the US Strategic position to consider.

The War on Islamic Fascism is different sort of war. in facing this Asymmetrical threat, we have a hidden foe, spread out across a geographically diverse area, with covert sources of supply. Since we cannot go everywhere they hide out, in fact often cannot even locate them until the engage us, we need to draw them out of hiding into a kill zone.

Iraq is that kill zone. That is the true brilliance of the Iraq strategy. We draw the terrorists out of their world wide hiding places onto a battlefield they have to fight on for political reasons (The “Holy” soil of the Arabian peninsula) where they have to pit their weakest ability (Conventional Military combat power) against our greatest strength (ability to call down unbelievable amounts of firepower) where they will primarily have to fight other forces (the Iraqi Security forces) in a battlefield that is mostly neutral in terms of guerrilla warfare. (Iraqi-mostly open terrain as opposed to guerrilla friendly areas like the mountains of Afghanistan or the jungles of SE Asia).

Did any of the critics of liberating Iraq ever look at a map? Iraq, for which we had the political, legal and moral justifications to attack, is the strategic high ground of the Middle East. A Geographic barrier that severs ground communication between Iran and Syria apart as well as providing another front of attack in either state or into Saudi Arabia if needed.

There were other reasons to do Iraq but here is the strategic military reason we are in Iraq. We have taken, an maintain the initiative from the Terrorists. They are playing OUR game on ground of OUR choosing.

Problem is Counter Insurgency is SLOW and painful. Often a case of 3 steps forward, two steps back. One has to wonder if the American people have either the emotional maturity, nor the intellect” to understand. It’s so much easier to spew made for TV slogans like “No Blood for Oil” or “We support the Troops, bring them home” or dumbest of all “We are creating terrorists” then to actually THINK.

Westerners in general, and the US citizens in particular seem to have trouble grasping the fundamental fact of this foe. These Islamic Fascists have NO desire to co-exist with them. The extremists see all this PC posturing by the Hysteric Left as a sign that we are weak. Since they want us dead, weakness encourages them. There is simply no way to coexist with people who completely believe their “god” will reward them for killing us.

So we can covert to Islam, die or kill them. Iraq is about killing enough of them to make the rest of the Jihadists realize we are serious. They same way killing enough Germans, Italians and Japanese eliminated the ideologies of Nazism, Fascism and Bushido.

Americans need to understand how Bin Laden and his ilk view us. In the Arab world the USA is considered a big wimp. We have run away so many times. Lebanon, the Kurds, the Iraqis in 1991, the Iranians, Somalia, Clinton all thru the 1990s etc etc etc. The Jihadists think we will run again. In fact they are counting on it. That way they can run around screaming “We beat the American just like the Russians, come join us in Jihad” and recruit the next round of “holy warriors”. Iraq is also a show place where we show the Muslim world that there are a lines they cannot cross. On 9-11-01 they crossed that line and we can, and will, destroy them for it -

If you will not fight for the right when you can easily win without bloodshed; if you will not fight when your victory will be sure and not too costly; you may come to the moment when you will have to fight with all the odds against you and only a small chance of survival. There may even be a worse case: you may have to fight when there is no hope of victory, because it is better to perish than to live as slaves.”

Winston Churchill

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Republicans should hammer her onher obstruction to development.

Yeah...not the best time for the pubbies to demagogue THIS particular issue.

Drilling in ANWR was debated in the Senate in April 2002. By a vote of 46 to 54, the Senate failed to vote cloture and thus limit debate on April 18th.

Majority Party (June 6, 2001-November 12, 2002 --):
Democrat (50 seats)
Minority Party: Republican (49 seats)
Other Parties: 1

So...who were the republicans that sold us out and stopped drilling in ANWR?
Roll Call Vote
NAYs ---54
(republicans voting with the rats)
Chafee (R-RI) -- FIRED!
Collins (R-ME)
DeWine (R-OH) -- FIRED!
Fitzgerald (R-IL)
* John Sydney McCain (R-AZ) * -- "presumptive republican presidential nominee...yippee!
Smith (R-NH)
Smith (R-OR)
Snowe (R-ME)

YEAs ---46
(Rats voting with the Republicans)
Akaka (D-HI)
Breaux (D-LA)
Inouye (D-HI)
Landrieu (D-LA)
Miller (D-GA)

Drilling in ANWR came up for a vote again in 2005. Once again, the "republicans" in the sInate stopped it dead!

ARCTIC DRILLING (Published: 03.20.2005)
On Wednesday the Senate, voting 49 for and 51 against, rejected a plan by Democrats requiring a higher hurdle for the Senate to approve oil and gas drilling in the Arctic National Wildlife Refuge (ANWR). This occurred during debate on the congressional budget blueprint (S Con Res 18).

The vote makes any bill to launch drilling filibuster-proof by allowing the Senate to approve it on a simple majority vote. In previous years, supporters needed 60 votes to authorize drilling. The project would directly affect about 2,000 coastal acres in the pristine region of northeastern Alaska.

A yes vote opposed ANWR drilling.
● Yes: John McCain, R -- Ooooops! There you are again, Johnny!

Any guesses as to how Vice President Cheney would have voted to break a tie on this vote?

Thank you. That was a nice lead in to the email I just sent Ms. Pelosi.

On April 24, 2006, Nancy Pelosi made this promise:

“With skyrocketing gas prices, it is clear that the American people can no longer afford the Republican Rubber Stamp Congress and its failure to stand up to Republican big oil and gas company cronies. Americans this week are paying $2.91 a gallon on average for regular gasoline – 33 cents higher than last month, and double the price than when President Bush first came to office.

“With record gas prices, record CEO pay packages, and record oil company profits, Speaker Hastert and the Majority Congress continue to give the American people empty rhetoric rather than join Democrats who are working to lower gas prices now.

“Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies, and increasing production of alternative fuels.”

Please inform Ms. Pelosi that she has ‘failed’ in her policies, ‘failed’ as Speaker of the House, and ‘failed’ overall in all her policies.
Over and above all that, she proves she is an imbecile everytime she opens her mouth.

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