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Senate Proceeding on Jul 23rd, 2008 :: 4:43:33 to 4:58:14
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Amy Klobuchar

4:34:08 to 4:43:33( Edit History Discussion )
Speech By: Amy Klobuchar

Amy Klobuchar

4:43:20 to 4:43:33( Edit History Discussion )

Amy Klobuchar: done. it is time to act on speculation. in conclusion, the cost of energy is hurting americans from all walks of life and businesses in every sector of our economy. we need to work hard, and i have

Dianne Feinstein

4:43:33 to 4:43:47( Edit History Discussion )

Dianne Feinstein: been pushing for the last year and a half for a long-term energy policy. we need that bold energy policy to carry our nation forward. but we also need to do something now, today, not tomorrow, not next

Dianne Feinstein

4:43:33 to 4:58:14( Edit History Discussion )
Speech By: Dianne Feinstein

Dianne Feinstein

4:43:47 to 4:43:57( Edit History Discussion )

Dianne Feinstein: week, not in september. let's pass this speculation bill and help the people of this country. thank you, mr. president, and i yield the floor. mrs. feinstein: mr. president? dethe presiding officer:

Dianne Feinstein

4:43:57 to 4:44:10( Edit History Discussion )

Dianne Feinstein: the g senator from california is recognized. mrs. feinstein: i ask unasanimous consent to speak for 12 minutes. the presiding officer: the senator is recognizenad.| mrs. feinstein: i wish i could come

Dianne Feinstein

4:44:10 to 4:44:27( Edit History Discussion )

Dianne Feinstein: to the floor and say s there is a quick fix for gasoline prices at the pump. this is needed as much as anywhere in california where gas prices are high and at times the very highest. i wish i could

Dianne Feinstein

4:44:27 to 4:44:39( Edit History Discussion )

Dianne Feinstein: say there was this quick fix but i really can't. i wish i could sayou that if wee could dr ill all of the outer ocontinental shelf, if we could drill on all of the public land in america,, the price

Dianne Feinstein

4:44:39 to 4:45:00( Edit History Discussion )

Dianne Feinstein: of gasoline at the pump would drop immediately, but i can't. in all good conscience i don't believe that opening the outer continental shelf to new drilling would lower the prices at the pump any time

Dianne Feinstein

4:45:00 to 4:45:19( Edit History Discussion )

Dianne Feinstein: in the near future. first place, it takes two years for minerals and management services to do the contracts. second place, all drilling rigs are now leased. there need to be new rigs. third place, there

Dianne Feinstein

4:45:19 to 4:45:35( Edit History Discussion )

Dianne Feinstein: is no additional refining capacity. fourth place, p drilling in the outer continental shelf and on o public lands in america over the last eight years has increased by 361% and at the same time

Dianne Feinstein

4:45:35 to 4:45:52( Edit History Discussion )

Dianne Feinstein: the price of oil has doubled. so there is no relationship betweenbe drilling on the outer continental shelf, drilling on public lands in america and the price ofof oil. i. deeply believe this. t some

Dianne Feinstein

4:45:52 to 4:46:09( Edit History Discussion )

Dianne Feinstein: say it's simply a problem of supply and demand butd physical supplies of oil and natural gas have remained relatively stable over the past year. in fact, if you remember, executives from oil companies

Dianne Feinstein

4:46:09 to 4:46:23( Edit History Discussion )

Dianne Feinstein: testif ied before congress recently and asserted that the price should be about $60 a $ barrel if it were just a matter of supply d demand. now, some point to instability in the middle east and

Dianne Feinstein

4:46:23 to 4:46:39( Edit History Discussion )

Dianne Feinstein: africa's producti on regions. others have pointed to the falling dollar. these are certainly factors. but it can't explain the t sharp uptick in prices we've seen at the pump over the last few

Dianne Feinstein

4:46:39 to 4:46:58( Edit History Discussion )

Dianne Feinstein: months. so what's reallyy going on? what's new in this picture? consumption in america has dropped 3% this year over the same period last year. so what's new? there's only one thing that's different.

Dianne Feinstein

4:46:58 to 4:47:17( Edit History Discussion )

Dianne Feinstein: there's only one thing that's new and it's a massive influx of speculation in the marketplace. this is the 800-pound gorilla. increasingly experts now say that rampant speculation in energy markets account

Dianne Feinstein

4:47:17 to 4:47:33( Edit History Discussion )

Dianne Feinstein: for anywhere from 25% to 40% of the energy price increase. some will say even e more. so i think we've got to take a look at why this is the case and what we can do about it. in may, congress took

Dianne Feinstein

4:47:33 to 4:47:52( Edit History Discussion )

Dianne Feinstein: a major step forward in the effort to bring more oversightig too energy futures markets when we enacted legislation to close the notorious enron loophole. the senator from minnesota just referred

Dianne Feinstein

4:47:52 to 4:48:08( Edit History Discussion )

Dianne Feinstein: to it. i had worked on this for six years. came to the floor when phil gramm argued against it. lost. got just 48 votes. came back again. we finally got it in the farm bill this time and the notorious

Dianne Feinstein

4:48:08 to 4:48:29( Edit History Discussion )

Dianne Feinstein: enron loophole, today, is closed. now, what was that? this loopholeis was created in 2000 when a measure was inserted in the dark of night into a must-pass appropriations bill at the behest of enron and

Dianne Feinstein

4:48:29 to 4:48:51( Edit History Discussion )

Dianne Feinstein: others to essentially eliminate them from the commodities modernization act. two commodities were left out: negative andnd energy and metals. during the crisis in 1999 and 2000 we saw the costs soar from $8

Dianne Feinstein

4:48:51 to 4:49:04( Edit History Discussion )

Dianne Feinstein: billion in 1999 to $27 billion in 2000. and then to $27.5 billion in 2001. the reason for this was, in the main, manipulation, fraud, and reckless speculation of the worst sort all because you could

Dianne Feinstein

4:49:04 to 4:49:24( Edit History Discussion )

Dianne Feinstein: trade on electronic lat electronic platforms with no transparency and there was no antifraud or antimanipulation oversight by the commodities futures trading commission. when all was said and done

Dianne Feinstein

4:49:24 to 4:49:42( Edit History Discussion )

Dianne Feinstein: the energy traders left california taxpayers with an increased bill of about $40 billion. to date, 32 countries have pled guilty to market manipulation and settled $6 billion in claims. in recent

Dianne Feinstein

4:49:42 to 4:49:59( Edit History Discussion )

Dianne Feinstein: years we also saw the $6 billion collapse of the amaranth hedge fund because of unregulate d speculation inon natural gas futures on electronicec exchanges. and the list goes on. and this has typified

Dianne Feinstein

4:49:59 to 4:50:16( Edit History Discussion )

Dianne Feinstein: the energy marketplace. so it became clear that a t legislative fix was needed and we finally got that done, as i said. the bill, which is now law, ensures that all major trades of energy futures

Dianne Feinstein

4:50:16 to 4:50:33( Edit History Discussion )

Dianne Feinstein: that could drive up prices or have what's called a price discove impact, are placed under the oversight of the commodities futures trading commission. the new law imposes limits on rampant speculation,

Dianne Feinstein

4:50:33 to 4:50:48( Edit History Discussion )

Dianne Feinstein: prevents fraud and a manipulation, requires traders for the first time to keep records and provide an audit trail to the cftc. this was a significant victory. it's signed into law. but as we continue

Dianne Feinstein

4:50:48 to 4:51:04( Edit History Discussion )

Dianne Feinstein: to learn more about what's really going on with energy futures markets, it's clear that more work remains to be t done. we're learning about additional loopholes t hat must be closed. and the legislation before

Dianne Feinstein

4:51:04 to 4:51:31( Edit History Discussion )

Dianne Feinstein: us is critical to ensure that we can level the playing field in energy markets, that there's transparency there. first, the problem of large institutional investors like pension funds -- this is what's

Dianne Feinstein

4:51:31 to 4:51:50( Edit History Discussion )

Dianne Feinstein: new in this market. from 2003 to 2008 institutional investments in commodity index funds rose from $13 billion to $317 billion. that's in five years -- from $13 billion to $317 billion. now, you

Dianne Feinstein

4:51:50 to 4:52:07( Edit History Discussion )

Dianne Feinstein: might say, what does that have to do with it? well, daniel yergin said what it has to do with it when he said that oilth has become the new goldol a financial asset i which investors seek refuge as

Dianne Feinstein

4:52:07 to 4:52:23( Edit History Discussion )

Dianne Feinstein: inflation rises a rnd the dollar weakens. investors seek refuge. so the implications are potentially devastating. and here's why. unlike gold, energy and agricultural commodities meet essential

Dianne Feinstein

4:52:23 to 4:52:40( Edit History Discussion )

Dianne Feinstein: needs in every day life of average people. they are limited. they aren't pork bellies. energy is limited in the amount we have. and these institutional investors, the big pension funds like my m

Dianne Feinstein

4:52:40 to 4:52:56( Edit History Discussion )

Dianne Feinstein: own, the california public employee retirement fund, has inves ted over $1 billion in these markets.. these institutional investors are trading longg on energy futures prices. in other words, theyhe

Dianne Feinstein

4:52:56 to 4:53:14( Edit History Discussion )

Dianne Feinstein: are betting that the prices in these future f markets continue to rise. they're not hedging against the risk of changing oilil prices as p airlines and utilities frequently do. they never take delivery

Dianne Feinstein

4:53:14 to 4:53:34( Edit History Discussion )

Dianne Feinstein: of a product. they participate in the oil markets only on paper. yet these investors, e big ones, are a currently exempt from cftc regulation when they execute these trades through brokers or dealers.

Dianne Feinstein

4:53:34 to 4:53:55( Edit History Discussion )

Dianne Feinstein: ese trades are called "swaps." currently, the cftc limits speculation positions to a total of 20 million barrels of oil and three millionarrels of oil in the last three days of a contract. however, these same

Dianne Feinstein

4:53:55 to 4:54:13( Edit History Discussion )

Dianne Feinstein: investors avoid these limits by executing their trades as swaps. this is a mistake. m institutional investors have become speculators. last month, the cftc announced it would review trading practices

Dianne Feinstein

4:54:13 to 4:54:32( Edit History Discussion )

Dianne Feinstein: for these investors and this is a positive step. but legislation is still needed to level the playing field and close the loophole. this bill before us will limitim the size and influence of institutional

Dianne Feinstein

4:54:32 to 4:54:53( Edit History Discussion )

Dianne Feinstein: investor positions in energy markets. to further increase transparencyre this bill also requires the cftc to begin distinguishing between the institutional investor index trader and the swaps dealers who

Dianne Feinstein

4:54:53 to 4:55:10( Edit History Discussion )

Dianne Feinstein: broker their trades. this legislation closes the swaps loophole bringing trns -- transparency and speculativecu limits from contracts c executed through swaps dealers. in that way, preventing a price

Dianne Feinstein

4:55:10 to 4:55:31( Edit History Discussion )

Dianne Feinstein: discovery function as mucnh as possible to keep prices froms continuing to escalate. specifically, the bill gives thehe cftc the authority to begin collecting data on large over-the-counter traders so it

Dianne Feinstein

4:55:31 to 4:55:47( Edit History Discussion )

Dianne Feinstein: can determine whether price manipulation or excessive speculation is taking place. and this would ensure that the cftc has a clear picture of all trading in over the counter commodity markets. now,

Dianne Feinstein

4:55:47 to 4:56:01( Edit History Discussion )

Dianne Feinstein: the london loophole. what is the london loophole? we must prevent u.s. crude oil contracts from being traded on international exchanges without robust oversight. may i ask unanimous consent for two more

Dianne Feinstein

4:56:01 to 4:56:20( Edit History Discussion )

Dianne Feinstein: minutes, please. the presiding officer: without obhojection, so ordered. o mrs. feinstein: a recent report found that traders were using the london exchange to trade united states crude oil futures

Dianne Feinstein

4:56:20 to 4:56:36( Edit History Discussion )

Dianne Feinstein: to avoid u.s. regulations. in other words, go around it. i trades exceeded u.s. speculationpe limits. every single week since 2006. last month, cf testimony c announced it would limit this offshore

Dianne Feinstein

4:56:36 to 4:56:53( Edit History Discussion )

Dianne Feinstein: marketre speculation and require recordkeeping and an audit trail for these traders. that's a start. but legislation is still needed to codify the legislation. andd this legislation will require foreign

Dianne Feinstein

4:56:53 to 4:57:06( Edit History Discussion )

Dianne Feinstein: exchanges with customers in the united states to adopt the same speculation trading limits and reporting requirements that apply to united states trade ending the regulatory race to the bottom.

Dianne Feinstein

4:57:06 to 4:57:22( Edit History Discussion )

Dianne Feinstein: this language is i based on legislation that senator levin and i introduced previously. i believe very strongly that weth must ensure that american energy commoditie s are protected from manipulation

Dianne Feinstein

4:57:22 to 4:57:40( Edit History Discussion )

Dianne Feinstein: and excessivees speculation regardless of where the commodities are traded. so bottom line: this bill brings transparency, it brings accountability, it brings recordkeeping, it i brings oversight to

Dianne Feinstein

4:57:40 to 4:57:55( Edit History Discussion )

Dianne Feinstein: the energy markets. it wouldou impose sound, proven, econic principles to markets that are currently broke and where speculation has increased so dramaticallyra that it is pushing price up. itit would close

Dianne Feinstein

4:57:55 to 4:58:14( Edit History Discussion )

Dianne Feinstein: regulatory and legislative loopholes that prevent the cftc from f enforcing the commodity exchange act in energy commodity markets. i hope my colleagues will support it. i suspect it may not pass.

Sheldon Whitehouse

4:58:14 to 4:58:23( Edit History Discussion )

Sheldon Whitehouse: i hope it does because there is no question in my mind that the 800-pound gorilla and the price of gasoline at the pump is excessive speculation on commodities futures markets deals withit energy.

Sheldon Whitehouse

4:58:14 to 5:04:16( Edit History Discussion )
Speech By: Sheldon Whitehouse

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