Fox News
Expand
Browse All Video
Watch Live

You're watching...

House Democrats push probe into oil market speculators

Details

  • Description

    Rep. Chris Van Hollen on potential investigation

  • Duration 7:01
  • Date

Clips

Also in this playlist...

Latest News

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

House Democrats and -- a vigorous -- or whether speculators are manipulating these markets forty to Democrats led by -- congressman Chris that Colin.

-- -- a letter to attorney general Eric Holder in -- they say and I quote here we urge you to use every investigatory law enforcement tool at your disposal to ensure.

Proper functioning of our oil and gas.

Markets congress.

Right now congress and -- -- Really think it's it's speculators running amok here -- resistance to convenient.

Excuse to take the attention off.

The drilling critics of the president and all the suns.

Neil I think a lot of factors I go into the prices of oil and gas the biggest driver of course.

Are the forces of supply.

And demand.

But there's no doubt that a component.

Of the cost of gas today one of the things that helped drive up prices to where they are.

-- has to do with excessive speculation.

In the marketplace that's been -- -- component I mean and how big of him.

The figures I've seen range from fifty cents to a dollar per gallon.

Of the of the cost and we just had a case recently as you as you probably know.

Where company settled for having manipulated the price back during the last oil spikes we saw back in -- yeah.

John as you know congress they've done investigators believe I'm not apologists are little companies aren't as on the Williams tunnels -- and don't -- -- stock I don't.

Care one way or the other but I will say -- congressman on.

The president's interior secretary Ken some -- -- confront confront.

That the administration has gotten a lot more strict denying oil drilling permit since Steve what -- -- and he contended -- the president is pursuing an effective all of the above energy strategy but he did don't want to -- and -- colonias.

We have new sets of regulations that have been put into place by.

Have been focusing on these reviews and they are rigorous we make sure that any company that is going to be operating in the -- the United States.

Complies with these rules we set up and other words.

He's saying we've been cutting back.

So so there's -- supply and demand -- and oblique.

Well well a couple things yeah first -- you know we're dealing with prices on the world market right so.

There there -- a lot bigger sources of -- supply and other parts of the world we should try and maximize.

The US supplied to the market consistent with environmental protection after the huge oil spill.

In the golf I think it's very reasonable and I think the American people agree it's reasonable.

That we should ensure that oil companies that are drilling in deep water.

I comply we don't have that congress sentencing until we don't have -- face value actually route to getting one world.

Will will will doubt you know how important that is but if we look at any accurate stepping back.

Three years these latest three users the prior three years it is down markedly 37%.

Now this speculator -- it might be very germane.

But then again it might be something far simpler right.

Well I think it's a combination of events it's -- it's the world demand as well so for example.

As the Chinese economy.

-- continues to chug along at about 8% growth this you continue to have some growth in India and other markets.

More and more people are using oil and gas you got more people driving that obviously.

Creates a a -- on the man.

What do you think you and your colleagues are to blame for not used as an Oregon -- but you know by not coming up with a budget that in three years.

Both sides playing this game Republicans -- Democrats and never going to be getting this financial house in order.

Did its -- our dollar oil is priced in dollars it cost more dollars to buy oil that it might be a simple.

As you in Washington.

Not getting your job done we look like a joke so the world it cheapens our dollar it cheapens our image.

And it sends gas and oil prices -- -- out now -- mix and a couple things I I totally agree totally agree that we should get our fiscal house in order.

And that's why -- support the approach that bipartisan groups -- recommend that we got to get our budget deficit down through a combination.

Of -- but also through revenue including a lot of big tax loopholes but I do not think.

That the current us budget situation a Washington.

Is what's setting the world oil prices I think that's a.

Big not at all I not -- oil is priced in dollars I mean if we had a normal.

A normal stable currency.

Oil would be 30% less than what it is now.

Now I'm not saying that's the sole reason as I told -- the -- But I am saying that we we overlook something that's right beneath their announced that that been priced in dollars as it is and the dollar gets cheaper.

And it costs more dollars to get our readily agree -- -- it's not the sole reason.

But it is contributed to this and it is setting it in its stages and inflationary spiral it goes way beyond whatever speculated.

But no I I disagree with you there I think if you look at the number of folks who are.

Speculating in the oil markets and it goes way beyond the people who were simply.

-- For their own business reasons so it goes -- yeah.

I and I don't want to belabor this terms but it 2007 when those same speculators.

We're pressing down the price of oil to take advantage of a downward trend in well at the time.

I don't remember you were a lot of your colleagues coming after those nefarious SOB's then now they're they're up to no good.

-- I guess let's say is a double standard here.

Actually actually -- that the case I was just talking about where they just.

Succeeded in bringing a case against out folks per -- played the market that was back during the 20072008.

Period as you remember we had a big spike in oil prices.

In 2008.

Speculation was again a part of it.

We -- yeah we have the united swelled.

-- speculating Kennedy's in this country.

Let's say let's say eighty or bed immediately you -- did that then then stand in the -- that went.

It -- look what you have is you've you've got two things going on.

One are folks who were trying to actually manipulate the market and again -- a legal case was successfully brought them their people who were simply engaging in.

Is speculation so they're betting on oil prices.

And to the extent that you have lots of people.

Who are simply gambling that the oil prices will go a lot so for example because of this situation in the Persian gulf right.

That has a lot of dollars chasing after.

A commodity and that also has an Iraq again nights it's about fifty cents to a dollar I'm not I'm not the experts without -- -- experts say so again I'm not saying that.

You're gonna bring.

The oil prices down -- two dollars a gallon but -- fifty cents that -- -- -- -- -- Our numbers are out there a lot of work here in congress and on house.

Always been having regardless thank you good to be with you -- thanks woman running -- of -- and.

Load More