Fresh from New York after Eric Bolling revealed his secret plan to reduce gas prices on “Paying At The Pump” with Governor Sarah Palin. His idea to change the margin requirements for traders certainly has merit and should be explored immediately. I appreciate the opportunity to express some ideas on the show but wish we would have been allowed more time to discuss other ideas.
While changes in the way traders move the price of oil and other commodities is something that should be addressed now, it does not replace our need to drill more wells and build more infrastructure including pipelines and refining capacity. Natural gas is already abundant and there should be efforts immediately to shift some of the demand now on oil over the Natural Gas.
We need more access to Federal Lands to make a real difference and the American public has both the desire and right to access these lands. Immediate changes should be made in policy to allow for more access in a timely manner without the heavy handed regulation that plaques growth in the sector. We must accept that refining is necessarily going to have to grow in order to meet demand as the nation continues to grow.
Huge amounts of capital will have to be invested. This should not come from taxpayers. The industry and the private sectors will provide the capital necessary just as they did for the gas producers over the last 5 years. There is more than $1 trillion setting on the sidelines waiting for opportunities to finance and to invest in our energy future if government would simply get out of the way and/or provide the environment that streamlines the processes that are necessary.
To jump start the process. Consider that there are $750 billion in offshore profits held by companies that would like to bring those funds back to the US, but are reluctant to do so under the current tax burden that would be placed on these repatriated funds. A huge and immediate boost to the economy, the job market and every American if a portion of these funds were made available for energy improvements.
Congress should consider and pass a law that would exempt all repatriated funds if used in some manner to develop energy related projects. Whether it is green energy, black, purple or gold makes no difference. The market should decide winners and losers and not the government.
The American people can turn our energy situation around fast if government would simple allow for the tools necessary. It really is that simple.
Lets us contemplate the idea of raising energy margin requirements. I completely disagree with the notion of our govt. passing a law/rule that increases margin requirements. Why in the world would we knowingly invite congress/govt. to "fix the problem?" More central control/planning is the last thing we need right now. How exactly would raising the margin requirements decrease speculation and lower energy prices? ---Be back later, gotta run---
ReplyDeleteMajor banks should not be allowed to purchase vast numbers of contracts at no cost only to sell them at the end of the day. If futures traders where required to fund some portion of their risk at or near the time of purchase, real market foreces would have more influence.
ReplyDeleteI do not support more goverment involvement. I would hope the indexes (exchanges) would step up and do this which they have the power to do.