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Former Energy Secretary Bill Richardson on the factors behind rising oil prices and how much of a role speculators play.
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-- Peter to former energy secretary Bill Richardson on whether Washington's on the -- under just a witch hunt.
Secretary of things going on here.
Well look what has happened is that the president wants to control.
-- -- league -- the legal market manipulation.
He's not against legal speculation and what has happened -- -- as oil prices rise you get these financial traders.
That -- purchase oil but never intend to take possession of it.
And what is -- -- also added that -- Regulator short -- it short in anticipation of prices going lower.
I never hear anyone complain when -- -- wanna.
Well look -- Perhaps that doesn't happen very large deal every look at our champion in 2000.
130 don't Tibetans on -- happen a lot but only point is -- see a lot of deflecting I don't see a lot of a lot of real solving the plan.
Look there's nothing wrong way of market speculation the individual does that.
But when you purchased to manipulate markets and look there's been an increase.
It used to be 30% financial speculators.
In the oil area now it's about 60%.
The swap market is 300 trillion dollars and I think what Wall Street reform is trying to do.
Is basically keep -- I have -- so there is a market manipulation.
I don't like -- us.
Dick -- -- let's you and I can cause you don't dishonorably disagree on this subject I think it's just about take issue I'd I've covered these markets for years governor's secretary.
And and I'd -- and when -- when Iran update on investigations.
Tried to sees as everyone is trying to manipulate an argument never happens.
I've seen what happens when -- -- prices down no one makes a big deal of that you might say it's rare but it's -- enough that I report on to be dead as it met.
Isn't the bigger issue here not so much -- speculators are doing.
But what Washington is not doing Washington is not aggressively.
Following its word when it says it wants to explore every drilling opportunity.
But only it's going those opportunities that suit its Green means.
Well look I agree with you I think the president has a good policy it's called all of all of the above into equities and around us and he darling -- doesn't mess is it.
Nobody it is -- I mean they're total.
-- this -- -- -- -- -- but it doesn't no no no he's not doing that he's saying drill bit delegates -- it really does us no clear.
Kids energy efficiency.
It's natural gas I mean he's doing it I think what we are trying to do is.
Prevent abuses -- since it's not right of a financial speculator.
This trading on borrowed funds it's not right of financial speculator doesn't have transparency.
I think these Wall Street reforms of trying to put a -- on that you and I know that president can't control gas prices.
Demand in China and India volatility in the Middle East the Arab Spring what Iran does the -- Do you and I knew this in mind when the okay -- navy award this minds that the president little control over the situation when George Bush was president.
I do remember a senator Barack Obama.
Lamb basting that president for not doing more to respond to what was a post-Katrina brought out.
In energy prices then be -- as a man I know this is politics I'm not naive but I'm just saying.
That when prices why not to the degree that they have.
And then belatedly we look at speculators as a problem or we look at big bad oil companies is a problem.
-- we you know assailed their tax breaks which might or might not be even germane to this issue.
Aren't we forgetting the simple fact that we don't practice what we preach when we say we want to explore.
All energy sources but we we tie the hands.
Of oil sources and other words we limit how corn where they can -- can go and how far they can tap new technologies to get.
What could be vastly greater oil and natural gas reserves than we ever comprehend.
But you know need to look the the oil companies more billion dollars it.
Subsidies say no way I'll I should find they don't even care that much about what book doesn't take them away unless event happening.
None -- -- -- look I'm I'm sorry I'm for unilateral disarmament.
Get -- it and get rid of the Green industry -- ought.
What would eat it seems penny -- to say all right well what we're gonna don't suspect there's not a big oil companies we're going -- everything but the inherent problem itself.
Of Washington that cannot agree on an energy policy.
And cannot agree know that -- I have.
Under -- deal but while senator -- alleges that listen to happen secretary in thirteen years China and also ran in the oil industry.
Have now emerged stabbed the single largest.
Energy producer in petrochina.
In thirteen years it is it -- ExxonMobil.
No one cares about that China did that the same at the same country.
That is married it's up to these new technologies.
And supported the president's quite right on that has got double barrel.
In oil and now -- us on that.
No but look the a look at the facts under this president.
The largest number.
Increased oil and gas drilling pipeline permits look what he did with the public plans -- a couple of days ago.
More drilling there but also an emphasis on renewable energy on nuclear and clean coal and energy efficiency on vehicles that are more.
Efficient here.
The juice lines -- I want to know why when they say go full throttle and everything they mean it and I'm Italian ambassador what they do is.
I'm going and that's certainly governor you have amazing resident elect.
They do expect I'm telling you they do everything and they -- full throttle and everything so they were all going batteries they roles so it.
And now they're getting -- rule loyal and they didn't even know they had a little more than a decade ago.
That's get that done well I where there's not -- There are near right.
I just got back there they're pursuing everything this is why I think it's important.
That we use every available to look I'm not saying all speculators.
Are crooks I'm just saying there -- some bad apples that are manipulating the market that are not regulating.
That nobody has overseen what they've done just let's keep an eye on them and I think that market manipulation.
It is illegal -- on Wall Street reform should be allowed to that the rules for commodity trading on the Wall Street reform section.
On these traders that are market manipulating.
You know should be enacted I think things would get a little better in the speculation.
OK and we can respectfully disagree but certainly it is always a pleasant and do of that caliber resonant.
Governor ambassador and secretary thank you very very much.
