MOC, NEFI and PMAA Take Action to Address High Energy Prices
MOC has been working with industry leaders around the country for months on various fronts to address super-high energy costs and the impact on Oilheat dealers and consumers. Our activities have included consistent Congressional outreach and unified public relations. But much more needs to be done and MOC and others are taking action.
Following a lengthy conference call on March 17 with industry representatives from across New England, in New York, New Jersey and from the Petroleum Marketers Association of America (PMAA), MOC and others agree and have agreed for months: The energy market has been overtaken by investment banks and hedge funds to the detriment of Oilheat dealers, homeowners, motorists, and businesses large and small.
The high prices and extreme volatility are especially disastrous for the small business members of MOC as profit margins shrink and accounts receivable explode. Therefore, MOC believes that the following actions should be undertaken by policymakers immediately:
§ Only those who can take delivery of an energy commodity can trade the commodity
§ As an alternative, increase the margin requirement to those who speculate on energy to 100%, as opposed to those who take physical delivery on energy commodities
§ Encourage the Federal Reserve to immediately implement a strong dollar policy
§ Request the Farm Bill Conferees to adopt the Senate language on speculation to Close the Enron Loophole (CTEL)
§ CFTC should repeal all no action letters issued to foreign boards of trade relative to energy
§ Stop filling the Strategic Petroleum Reserve
§ Release product from the Northeast Regional Product (Heating Oil) Reserve
§ Fully fund LIHEAP in the FY 2009 Budget at its authorized limit of $5.1 billion
MOC has already signed onto a letter (read letter) to President Bush and U.S. Energy Secretary Samuel Bodman calling for the release of product from the Northeast Regional Product Reserve, and will be signing a letter to U.S. Treasury Secretary Henry Paulson calling for commodity trading reform and market transparency. MOC will also be meeting with members of the Massachusetts Congressional delegation in their district offices over the next week to ten days.
"We've been telling Congress and the media for months that lawmakers and the Bush Administration must take action to ease the astronomical rise in crude oil and heating oil prices," said MOC's Michael Ferrante. 'The futures market is broken and needs fixing, and if Congress can hold hearings on steroids in major league baseball, then they can hold hearings on how commodities are bought and sold and how speculators and hedge funds have hurt Oilheat dealers and consumers."
