House Republican leader Eric Cantor (R-VA) addressed te CME, a group of oil traders in Chicago yesterday and told them that Republicans will keep the Democrats from restricting their speculation in oil.
It is speculation by Wall Street traders that is responsible for the current record high prices. Speculation increases gas prices by 30%. It’s not supply and demand, and it’s not turmoil in the Middle East: it’s Wall Street speculation that raises gas prices.
Maybe he didn’t mean all Americans, just those who are sick of high gas prices.
Republicans and big oil are joined at the hip: Cantor is pro-big oil
First, all but two Republicans voted to keep giving the $4 billion a year subsidies to oil companies yesterday, which killed the Democrats bill to end the subsidies. President Obama is calling for the end of taxpayer subsidies to big oil, but Cantor has “got big oil’s back.”
Then Cantor goes to New York to tell the Wall Street speculators Republican will keep the Democrats off their backs. It is clear whose back the Republicans have.
Exxon chairman admits to Congress that Wall Street speculation increases gas 30%
In a hearing in the Senate Finance Committee May 12th, Exxon oil chairman, Rex Tillerson, was asked what the real cost of a barrel of oil should be. His answer was that it ought to be the “…the price of producing the next marginal barrel of oil.” When asked what that cost was, he responded “…somewhere in the $60 and $70 range.”
Oil was trading at $100 a barrel that day, down from $112 a barrel earlier this quarter. What that means is that $34 or about one third of the price of a barrel of oil has nothing to do with costs of production, or supply and demand. It is totally due to Wall Street speculation.
Speculation by traders that Eric Cantor says Republicans will protect.
Cantor promises to protect big oil from pesky regulations
Eric Cantor went further. He also said that Republicans would protect Wall Street and oil companies from regulations by the Dodd-Frank Act, the EPA (Environmental Protection Agency), the FTC (Federal Trade Commission) , the SEC (Securities and Exchange Commission) and half a dozen other agencies. The Dodd-Frank Act regulates Wall Street. The FTC regulates price gouging and unfair business practices.It is widly accepted that a lack of regulation of Wall Street led to the crash and recession of 2008.
The EPA is charged with protecting air and water form things like the BP oil spill. All these are apparently in the GOP’s cross hairs.
Republicans are awash in money from oil companies and Wall Street
In the last decade, oil companies gave $187 million dollars to candidates for Congress according to Federal Election Commission. Last year alone, they gave $30 million of which $21.8 million went to Republicans. Top Democrat beneficiaries were Mary Landrieu (D-LA), Ben Nelson (D-NE) and Senator Begich (D-AK).
All but two Republicans and three Democrats voted to let big oil keep their subsidies. Maybe you can take a wild guess who those three Democrats were (hint, look at last sentence in previous paragraph).
I guess $30 million to buy Congress is a good deal if you get $4 billion in subsidies in return. Buy low, sell high. Then, to protect its investment, they spend a little bit more investing in misleading T.V. commercials about big oil.
Democrats will force another vote on the subsidies this year. They have no prospect of passing despite the fact 74% of American want the oil company subsidies gone. Nearly 100% want lower gas prices—everyone but Eric Cantor, oil executives, Wall Street Traders, Republican Senators, and the three adopted Democrats. The three Senators adopted by big oil.
Despite their recent flirtation with tea, Republicans are still the Grand Oil Party.
If you like this article, follow me on Facebook, or click the white button with orange letters “Subscribe” next to my picture (above) for a free, anonymous subscription to this news column!
Feel free to leave a comment below. Dissenting views are fine, but trolling and profanity will not be tolerated.