Effort to curb oil speculation stalls in Senate

Original Link: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/07/22/national/w085150D65.DTL

By DINA CAPPIELLO, Associated Press Writer

Senate Democrats failed Friday to advance a measure to rein in oil market speculators, one of a series of efforts to tell voters they are serious about addressing $4-a-gallon gasoline, and they rejected Republican calls to expand offshore oil production.

Democrats needed 60 votes to clear a parliamentary hurdle and bring their oil speculation bill to a final vote. They got only 50, as 43 Republicans held out for votes on numerous amendments they say would bring down energy prices.

Senate Majority Leader Harry Reid has formally offered them a vote on a single amendment on offshore drilling. In the House, Democratic leaders have blocked any vote on offshore drilling.

"The Republican senators have chosen to take a dodge," said Reid, D-Nev. "If you don't like our speculation bill, what do you want? Silence. They said they want this energy debate to go on forever."

The Senate Democrats' bill would require the Commodity Futures Trading Commission to set limits on trading in oil markets by investors and speculators. It also would close a loophole that lets speculators trading on the London oil market escape scrutiny by U.S. regulators.

Democrats say the rapid increases in oil prices have coincided with big rises in trading on oil future markets.

Republicans say high gasoline prices are being caused by the basic economics of supply not meeting demand.

"We are not leaving, we are not giving up," said John Cornyn, R-Texas. "We can tear down these walls that prohibit domestic energy production here in America."

The Senate scheduled a procedural vote Saturday on a measure to double subsidies to helping poor people pay what are expected to be record heating bills next winter. But as Congress headed into the final week before the August recess, chances of breaking the energy stalemate between Republicans and Democrats looked bleak.

On Thursday, House Republicans scuttled a bill to release 70 million barrels of oil from a national stockpile, which Democrats said would lower gasoline prices.