US top trade associations demand end to rampant speculation, but why Congress not act and Media not report ?

Question

"Leading energy experts across the country agree that recent, unprecedented jumps in crude oil prices are due, in large measure, to rampant speculation in the energy commodities markets.”

“19 of the nation’s top trade associations, consumer groups and labor organizations, the coalition urges “immediate reform in the widely-speculative energy commodity futures markets.”

http://energy.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_Id=a0267544-59b1-4cd7-b41e-8f0e55738999

Answer 1

Because the oil industry contributes heavily to politicians. I know this sounds like a cliche answer.  But the numbers don't lie.  The oil and gas industry donated over $17 million (26% of dems and 74% of reps in 2008) for campaigns.    You must also remenber that the year is not over so the contributions could top 2006 total contributions by the oil and gas industry of over $20 million (18% dems, 82% reps).   It is not the best interests of politicians to enact regulation that will limit diminish the profits of their biggest donors . After all if you are a giant oil company would you donate heavily to politicians so they get elected so they can pass regulation to lower your profits?  Politicians rather turn a blind eye to this type of things so that they don't hurt their donors interests and so that they don't come up and have to openly denied calls to end speculation so they become unpopular.   It is a balancing act, a performance if you ask me.  Just another way to illustrate the corruption in Washington and the weakness of democracy when you allow special interests take over the system.

As far as why the media is doing the same? well have you notice that U.S. media censors (and by that I mean limits) the information they present to their viewers? unlike most overseas news sources?  It boils down to the same principle, except that fussiness have more power over the media since the industry pays the media in form of advertisement revenue for they to survive.  Remember we are talking about an industry with billions of dollars (cash) they have a lot of influence.

Hope this helps you a bit.