Government's Oil Investigation 6 Months Underway

WASHINGTON — Federal regulators are six months into a wide-ranging investigation of U.S. oil markets, with a focus on possible price manipulation.

The Commodity Futures Trading Commission says it started the probe in December and is taking the unusual step of publicizing it "because of today's unprecedented market conditions."

Crude prices have risen more than 42 percent since early December, when they hovered below $90 a barrel. Gasoline prices are nearing a national average of $4 a gallon, up from about $3.20 a year ago.

The agency said details of the investigation remain confidential.

Comments

[Zentomato]

Does anyone with even half a brain think that this will amount to anything? We have the best government that big oil can buy.

[KillTheMessenger]

You should keep in mind that there is a real possibility that big oil is happy with this government AND that oil production is peaking. The first part can be mediated by electing different politicians. The second part can be changed about as much as the constant of gravity. If you buy a car today and it is anything else than a hybrid or small compact, you are basically betting financially against the laws of nature. In my personal experience (I work with these laws professionally) that is an awfully poor bet to make.

[EinChicago]

You just convinced me to trade in my hybrid for an SUV. If you bet this way, it has to be wrong. :)

[peachfuzz]

Like OJ is looking for the real killer.

[robbor]

absolutely lovely

[Daly]

Oil cost more the world over and now the goverment is interested; where were they when SUV was the king of the road and no consideration was given to conservation plus they thought it a good idea to have China fund our crazy war. Now Iraq goverment has lots of cash but still we are handing over funds to run their government as welll as paying the protection $ to the "bad" guys.

[loki]

If you have kept track of this, its only in the lead up to an election when Big Oil , wealthy wall street types and corporate leaders are pulled into investigations of some kind. There is never anything actually found or done to fix the problems they were investigated for, but campaign contributions from those being investigated tend to increase greatly just after these hearings. Go ahead, check it out. You will see. Just like in 04, 00 and even further back. Its a clear pattern. This is DCs way of asking for a raise from their owners.

[cdnnewsjunky]

"This is DCs way of asking for a raise from their owners." - loki Posted 10:45 PM on 05/29/2008

Still chuckling. I'd flag it as favorite but then I'b be admitting I'm just as twisted and cynical as yourself.

[vippy]

Due to the stupidity of us voters who don't pay attention to their new laws they pass. The recent
energy policy was horrible yet Kerry spoke out and said he was proud of that piece of crap.
The CAFE Standards are behond belief and the American Public stayed unaware, ergo stupid.

[Podewumun]

The price of a barrel DROPPED to $126 today. Maybe the speculators are spooked. LOL

[BlueToTheCore]

Sounds like you own stock in the oil companies or have a vested interest...typical oil corporation operative...

The oil "speculators" on wall street are their lapdogs as well...its all a big scam to get the American people to cave in on drilling in Alaska and off the coast of Florida...

Make it so painful that they allow what you are hoping for...

Luckily people are seeing right through this BS...

[BlueToTheCore]

my bad this was meant for the moronic comment below from Red Wolverine ;o)

[KillTheMessenger]

The "speculators" are taking profits. I wouldn't get too excited about all of this. It goes up, it goes down. But mostly, it goes up.

[DBBearden]

For years I have speculated that when ever the Republicans needed to raise campaign finance money for Bush, the price of gasoline at the pump rose. But the price of gas always dropped just in time for the election cycle so that voters did not go to the polls angry at the oil man over gasoline prices.

MSNBC has a piece about the "Oil Bubble" that I believe to be accurate: http://www.msnbc.msn.com/id/24625005/
Rather than following the McCain/Clinton gas tax holiday, the US strategic petroleum reserve should be dumped onto the market immediately. Now of course with Bush still in office through the rest of the year that ain't going to happen. But it could after January 2009. Combined with a nationwide boycott of all oil companies waged by consumers would result in a collapse of oil prices back to 1980s levels. Environmentalists will of course advocate higher gas taxes to pay for conversion to alternative fuels and modes of transportation. I for one will be working from home and trying to figure out how I can afford a hybrid version of my All American SUV.

[MetalCanuck]

ITS THE FALLING DOLLAR!!

DUH!

Now give me the money they are spending on this.

[CaptainHowdy]

Yeah, the dollar has been losing an average of 6% per year since Bush took office. Nobody seems to want to report that side of the story though.

[RedWolverine]

Drill Here....Drill Now....Pay less

[KillTheMessenger]

Drill where? We haven't been finding enough oil to replace what we are producing for decades:

http://www.energybulletin.net/image/primer/discovery_gap.gif

Scary... isn't it?

[maschwab]

http://www.google.com/search?hl=en&q=peak+oil&btnG=Google+Search
http://en.wikipedia.org/wiki/Peak_oil
http://en.wikipedia.org/wiki/Hubbert_peak_theory
Peak oil is here. Prices will go up until demand drops below supply.

[cdnnewsjunky]

"We haven't been finding enough oil to replace what we are producing for decades"
- KillTheMessenger Posted 10:12 PM on 05/29/2008

True enough, at least as long as your talking about new finds, there are old oil fields called the Bakken oil fields that stretch arcoss North Dakota and parts of Canada. The Canadian counter part to the field has been producing for the last couple of decades, so it wouldn't suprise me that North Dakota is sitting on hundreds if not thousands of billions of barrels of oil protected up until now, by the shale that holds it.

[BPCentrisAmerican]

Deregulation zealot and former Texas Senator Phil Gramm, is John McCain’s economic advisior, and active banking lobbyist. Senator Gramm is responsible for the what’s lovingly called the Gramm / Enron loophole in the energy bill past in 2001, as a result of the Cheney’s fascist secret energy task force and we all know what Enron did, screwing their customers and investors alike. Gramm was also very tight with Ken Lay, as was the Administration. Gramm’s finger prints are all over the current housing crisis. There will be hearings next week in the Senate and Gramm’s name will come up. Just think of the current energy price run up as Enron on a national scale. Considering Phil Gramm was on McCain’s short list for Energy Secretary, as was Ken Lay was with the current criminals running the country, I would not put to much confidence in John McCain’s judgment.

PS. The oil price run up is not a supply and demand issue, although energy independence is a good thing, oil consumption has been flat since the 80’s and the rise of China accounts for only 2.5% of oil consumption. In a recent Senate hearing the out the going CEO of Shell, when asked how much the barrel cost of oil should be, he responded $50 to $60 a barrel, so something is rotten in River City.

[Ihaveadream]

Yeah this "investigation" will be like the Warren Commission or the 911 Commission - Find out what Cheney's secret energy task force decided to do and their plan. Then and there will you find the answers.

End of story.

[Rule Of Law]

Left one out, sorry...

So?!

[kasinca]

It was $4.15 per gallon for self service regular when I went to lunch and I came out and it had gone up to $4.21 per gallon!

[preatorius]

Duh~!
What difference will it make. The government relies on oil companies just like you and me!
It is time to demand alternative fuel sources.
It is time for US auto makers to build more hybrids, Toyota, and Honda have several. Even Lexus has a hybrid.
Sorry folks, for the rude awakening, but it is also time to surrender your gas guzzling SUVs!
Now that the U S has caught up with the rest of the world, we are howling. The writing has been on the wall for years!

[Bobleblah1]

Does anybody believe that anything will come of this?
How many times have we heard this?
Does anybody believe that even $1 net dollar will be returned to the American consumer?
Does anybody believe anything the Criminal bush cheney government says?

[ItHasToGetBetter]

I agree. Why does it take 6 months to investigate something so obvious? I guess they have to look like they're doing something. All of this is squeezing so many people financially that I'd be interested in seeing how they'll be able to afford to buy a hybrid or anything else. I love it. Demand has decreased. The price per barrel has decreased. Yet, we're fed more excuses as to why the prices keep going up. It's gone up 17 cents a gallon in the last two days where I live.
What a disgrace.

[SouthJerseySteve]

When the "investigation" is finished, will they take their black marker and rub out all evidence that doesn't prove that everything is fine? They did that with Global Warming, Iraqi intelligence, and Homeland Security. Why would we trust them again with our future energy sources?

[hey0there]

let me guess, their conclusion will be a recommendation to start opening areas for oil drilling to lower prices

[WIpatriot]

Confidence is NOT high....

[Henry]

Sounds a bit like Gov Spitzer checking into rumors of prostitution in the big city! The shock, the urgency.