Energy speculation

I'm not in much of a position to comment on whether or not speculation is going on in the oil markets, but I will say this: when Enron collapsed, I initially defended the company in conversations with friends. I had worked on Enron's ill-fated broadband video project in 2000, and I was intimately familiar with the "irrational exuberance" in the technology world, not to mention the financial markets.

But as more information about Enron's actions came out, including the famous audio tapes of traders talking about making those "grannies" in California suffer, I realized just how much sway speculators held over commodities like electricity.

Apparently there is even an "Enron loophole" in the commodities trading laws which exempts the electronic petroleum trading markets from government regulation. It's widely believed that Phil Gramm (the senior economic adviser to John McCain best known lately for his "nation of whiners" remarks), helped to usher in this loophole on Enron's behalf back in the 90's.

SO GIVEN ALL THAT, it seems perfectly reasonable that some of the rapid rise in oil prices is due to speculation. Nevada Congressman Dean Heller apparently disagrees as he voted against the Commodity Market Transparency and Accountability Act (H.R.6604) today.

I don't know about you, but the Gramm-Bush-Cheney-McCain-Heller energy strategy isn't working for me.

Jill Derby is running for Heller's seat. Her campaign had this to say about Heller's vote; I'm eager to hear more about her position on energy issues.

UPDATE: Just checked the Obama website, and his energy plan also calls for closing the Enron loophole.