Nothing is going to get better until there is a huge public outcry. The only way politicians will do anything is if they fear they will not get re-elected due to their actions or inactions.

We should join our truck driver brethren and make a march on capital hill. Have them blow those loud horns until it drives the city nuts.

As far as writing letters, everyone needs to write their elected representatives a certified letter. It requires a signature. If everyone would do this, it would bombard their office with tons of mail that requires signature. This would cause some attention as well.

Of course a transportation workers strike that would shut down the national transportation system would definately get attention. However, not everyone would get on board to do that.

 

On several occasions in the past few months, I have written about the impact of skyrocketing fuel prices on airline customers – in their daily lives and when they travel (Final Approach May 1 and Final Approach May 28 ). In the long run, to lower oil prices for all Americans, we need to increase domestic supply, increase exploration, alternative energy sources and conservation. However, one near-term solution to the problem is for government to investigate and rein in oil speculators.

What is the Commodities Market? – Commodities are raw materials purchased by manufacturers of finished products such as food manufacturers, oil refiners or builders. Businesses that are highly dependent on oil – refineries, heating oil dealers, airlines and trucking companies among others – lessen their risk of significant price fluctuations by purchasing future delivery contracts at predetermined prices in what is known as the commodities or futures markets. The two largest U.S. commodities markets or futures exchanges are the Chicago Mercantile Exchange and the New York Mercantile Exchange, where people trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity at a specified price with delivery set at a specified time in the future.

What is the Problem with Oil? – There is a significant disconnect between the paper market for oil (speculators) and the physical market for oil (consumers). In recent years, speculators have taken advantage of actual consumers of oil by bidding up the price for futures contracts. If a speculator purchases a contract for delivery of oil at a high price six or 12 months in the future but has no intention of actually taking delivery of the oil in that contract, then a physical customer who needs that oil – to deliver home heating oil, to operate trucks or airplanes, or even to process in a refinery – will be forced to pay the higher price in order to obtain the oil that is needed.

How Do They Get Away with That? – Increasingly, sophisticated institutional investors have managed to manipulate the rules and regulations governing commodities transactions through a series of exemptions and waivers, including the so-called “Enron loophole,” low margin requirements and the dodging of U.S. public disclosure requirements. These complex arrangements have a similar impact: They put people engaged in oil-related businesses at a disadvantage with those who gamble relatively small sums that the price of oil will increase out of proportion to marketplace demands. If that happens, as it has regularly over the past few years, those who need oil for their businesses pay a premium, which is passed on to you – the consumer.

What Can Government Do Now? – In the near term, Congress needs to address the impact of unchecked speculation in the commodities market. Commodities trading is overseen by a small, but very powerful government agency known as the Commodities Futures Trading Commission (CFTC) . Congress can require the CFTC to implement a host of controls such as imposing limits on the quantity of commodities contracts speculators may purchase, closing the loopholes that allow speculators to trade exempt from any government oversight or regulation, and requiring reporting by those who are engaging in speculation. Experts say that closing regulatory loopholes in the trading of commodity futures will result in a significant reduction in fuel prices.

What’s Next? – Congress is expected to debate some of these issues in the next few weeks and it is urgent that they hear your voice. To facilitate public participation in the debate over speculators, we have launched a broad-based coalition, S.O.S. NOW, that provides a wide array of information on speculation and its impact on the price we all pay for oil. S.O.S. NOW stands for Stop Oil Speculation Now, and we urge you to go to the Web site Stop Oil Speculation Now | S.O.S. NOW and send a message to Congress about oil speculation.

Sincerely,


James C. May
President and CEO
Air Transport Association

 

take 7 minutes out of your life to listen to this explanation on speculation.

YouTube - Oil speculation and oil prices

 

YouTube - Who's to blame for price of oil?

Even the Saudis are saying Speculation is in large part to blame.

http://www.youtube.com/watch?v=BA8AfcWkIc4

 

Of course the Saudis are going to blame everybody but themselves and OPEC...but hey, at least they let girls burn to death rather than let them be seen in public in their pajamas.

http://news.bbc.co.uk/2/hi/middle_east/1874471.stm

I'd be careful about quoting the Saudis. They are not your friend.

 

i agree, i used it as just one of the many references on speculators being a big part of the problem. Just trying to back up my opinions.

 

This is my first post. I am not an airline pilot, but my uncle is a Captain at AA. I do hold an IFR rating, but I am not current right now.

I own a small trucking company that has 3 trucks and trailers. I think the Trucking industry and the Airline Industry should come together and put a stop to the rampant oil speculation. We are the two biggest industries that this country depends on and the biggest fuel users.

Remember that if you got it, a truck brought it.

Thank you for letting me post this, as I enjoy reading the posts on this forum about career that once dreamed of having.

 

The purpose was to invoke a sense of apathy from the traveling public. You put "Chautauqua" on there, and they're going to start thinking this is for the benefit of Native Americans.

 

yep - setting the stage for the next major bk... "don't make us liquidate; it wasn't OUR fault!"

 

the website is pretty easy - i just used it to write my reps and ask that they lay off speculators...