Brown makes moves on energy issue

America's energy problems have become a highlighted campaign issue over the past several weeks. When both presidential campaigns came to Ohio last week, Republican and Democrats alike held press conference calls to tussle over the energy issue.

One aspect that has been brought up to help solve the energy problem is cracking down on speculators, who may be artificially driving up the price of oil.

Sen. Sherrod Brown (D-Lorain County) co-sponsored legislation this week designed to do just that.

Brown announced Thursday that he is a co-sponsor of the "Stop Excessive Energy Speculation Act of 2008." This legislation would give the federal regulator of futures markets the resources to detect, prevent, and punish price manipulation and excessive speculation.

"We need to provide immediate relief to consumers struggling with high energy costs," Brown said in a statement. "Instead of sound bite solutions, we must act to lower gas prices now. We need to put Ohio families ahead of oil speculators. Going after excessive speculation would bring immediate relief to American consumers."

The announcement by Brown says the Commodity Futures Trading Commission (CFTC) is the primary regulator of oil futures markets and is responsible for preventing and punishing price manipulation and excessive speculation. The release further states that the "Stop Excessive Energy Speculation Act of 2008" would increase CFTC staff, strengthen the rules establishing lawful and unlawful trading practices, and give CFTC new authority to detect unlawful behavior by commodity traders.  The legislation would also close a loophole that allows oil traders to manipulate prices by routing oil trades through foreign exchanges.

According to the acting chairman of the CFTC, speculative trading of commodities has increased from 37 percent of the market in 2000 up to 70 percent now. Experts have concluded that speculation plays a significant role in driving up oil prices. The former director of the CFTC said that speculation adds 25-50 percent to the cost of oil.

Brown's announcement said he is working to make Ohio the "Silicon Valley of alternative energy."