CONGRESSMAN LARSON INTRODUCES LEGISLATION TO FIX BROKEN ENERGY MARKETS, LOWER GAS PRICES

FOR IMMEDIATE RELEASE: June 13, 2008

CONTACT: Emily Barocas/202-225-2795/202-593-1377

CONGRESSMAN LARSON INTRODUCES LEGISLATION TO FIX BROKEN ENERGY MARKETS,LOWER GAS PRICES

Washington, DC -- Today, CongressmanJohn B. Larson (CT-01), Vice Chair ofthe Democratic Caucus, introduced legislation that would take speculators outof the unregulated energy futures markets. It is these speculators who are unfairly driving up the cost of gas andhome heating oil and making it impossible for average Americans to make endsmeet. Day after day we see gas priceshit new record highs. This isunsustainable and unfair.

This bill would require that anyone who invests in oilfutures on the "dark" markets be able to actually take inventory of the productin which they are investing. That meansno speculators who are out to make a profit at the expense of the Americanpeople and our economy.

Congressman Larson said, "I know that this is a bold step. But, given the gravity of the currentsituation, bold action is exactly what's needed."

Experts around the country agree that speculation, not justsupply and demand, is driving up the cost of oil. Gay Caruso, Administrator of the EnergyInformation Administration, said in testimony before the Senate thatspeculation is adding as much as 10 percent to the price of oil. The CEO of Exxon Mobil, Lee Raymond, evenadmitted back in 2005 that, "we are inthe mode where the fundamentals of supply and demand don't really drive theprice." And, during questioning thisyear before the House Select Committee on Energy Independence and GlobalWarming, executives from the big oil companies cited speculation as one of themajor factors driving up the cost of oil and gas.

"I recognize the rolethat speculators play in a functioning market. But with the volume of tradesand amount of money in today's market, that role has been grossly distorted,"said Congressman Larson. In fact,the amount of money invested in energy futures has increased more than 1000%since 2000. Then, there were $9 billionin the energy futures market. Today,that number is up to $250 billion.

And, much of this trading is happening on markets wherethere is absolutely no regulation or oversight.

"Clearly the marketis broken," said Congressman Larson. "It is time to put the Americanpeople first and restore the concept of supply and demand to our oil markets."

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