WASHINGTON – As crude oil closed at a record $139.64 on Thursday, the U.S. House of Representatives passed legislation directing federal regulators to use emergency powers to curtail excessive speculation on the energy markets, which has been identified as a key factor in skyrocketing energy costs.  H.R. 6377, the Energy Markets Emergency Act, directs the Commodity Futures Trading Commission (CFTC) to use its existing authority to investigate and limit excessive energy speculation.

“Excessive speculation is driving up energy costs for American families and crippling our entire economy,” Stupak said.  “Today’s vote is a critical first step and a wake-up call to the CFTC and speculators alike.  Congress is revoking the free-pass CFTC has granted these speculators, which has allowed them to operate in the dark for the past eight years.”

Stupak, chairman of the House Energy and Commerce Subcommittee on Oversight and Investigations, held a hearing Monday on energy speculation.  The hearing was the second in six months Stupak has held looking at gas prices and energy speculation.  In the marathon seven-and-a-half hour hearing, the 12 witnesses who testified were nearly unanimous in stating that speculation was a significant factor in rising energy prices.  They urged Congress to increase oversight of energy markets and close existing loopholes, actions they said could result in immediate relief for consumers and the entire global economy.

“Addressing high energy costs is a critical issue that must be priority No. 1 for Congress,” Stupak said.  “Experts testified before my subcommittee on Monday that oil prices could drop by as much as 50 percent within 30 days if my legislation were to be enacted.  Now is the time for Congress to take up this comprehensive legislation and close off the loopholes that are allowing speculators to manipulate the markets.”

Last week Stupak introduced comprehensive legislation that would close off the loopholes allowing Wall Street speculators to drive up energy costs.  H.R. 6330, the Prevent Unfair Manipulation of Prices (PUMP) Act, has 59 bipartisan cosponsors in the House and was introduced in the Senate this week by U.S. Senator Maria Cantwell (D-Wash.).  The bill would close what remains of the “Enron loophole” as well as loopholes for foreign boards of trade and swaps.  The bill also addresses bilateral trades and bona fide hedging exemptions.

Growing bipartisan support is building in Congress for further action to address energy speculation.  As Stupak has highlighted through his hearings and work on this issue over the past three years, the money flooding into the energy markets far exceeds fundamental factors, such as supply and demand, in driving exorbitant price increases for gasoline, diesel, home heating oil and other energy products.  In January 2000, speculators accounted for 37 percent of energy trading, a figure that had grown to 71 percent by April 2008.

“All sectors of our economy have been hit hard by rising energy costs and those costs are passed along to American consumers in the form of higher prices for gasoline, food, transportation and manufactured goods,” Stupak said.

The House is expected to hold a number of hearings in July to examine various legislative proposals – including Stupak’s – to address excessive speculation.  House leadership has indicated they expect to hold a vote on energy speculation legislation before August.  Of the more than 18 proposals introduced in Congress, Stupak’s legislation has been identified by outside experts and his colleagues as the most comprehensive.  It has been endorsed by 15 organizations including the National Farmers Union, the International Brotherhood of Teamsters and the Air Transport Association.