Battle Brews Over Senate Bill S-1588 Introduced by Sen. Ron Wyden, D-Ore. to Tax Oil, Gas, Commodity Gains to Drive Down Oil & Gas Prices.

Legislation introduced by Sen. Ron Wyden, D-Ore., would require pension plans to pay taxes on gains from their investments in gas and oil commodities and would force hedge funds and other speculators to pay ordinary taxes on their oil and gas trading profits.
Congress will have a fight on its hands if it goes ahead with legislation that would for the first time require pension plans to pay taxes on gains from their investments in gas and oil commodities, pension fund executives said.

At issue is S. 1588, the Stop Tax Breaks for Oil Profiteering Act of 2009, which was introduced by Sen. Ron Wyden, D-Ore., on Aug. 6.

In an Aug. 6 statement on the Senate floor, Mr. Wyden said his legislation, which has been referred to the Senate Finance Committee, is needed to help rein in speculation in energy commodities that he said has driven up the price of oil for everybody.

A summary of the bill released by Mr. Wyden's office blamed institutional investors for at least some of the price jumps.

"The STOP Act would end the free ride that institutional investors get on profits made from the high prices of oil and natural gas — prices that have been driven higher by the high volume of institutional investment. Without tax subsidies, big investors will invest less in oil and gas markets, which means that oil and natural gas prices can be expected to fall, saving consumers at the pump.”

.For the complete article:
http://www.pionline.com/apps/pbcs.dll/article?AID=/20090821/REG/908...

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Permalink Reply by Mac Davis on August 22, 2009 at 13:00
At last, it makes all makes sense. It's all those darn retirees living their posh lifestyles from their pension plans that have been driving oil prices up. I always wondered why all the old people living off pensions were so darn rich.

Goodness knows we need to cut out all this domestic oil production. Stopping all this new production is bound to drive oil prices down, isn't it?
Permalink Reply by Pipeliner on August 22, 2009 at 14:35
Mac Davis,

Why are the Democrats so anti-oil & gas drilling? If they pass this bill it will help dry up funds that are needed to finance oil & gas exploration and drilling, especially small outfits.

When Russia, China India, etc start drilling their Cuban oil & gas concessions as close as within 60 miles of the Florida Coast (Thanks Jimmy Carter), we can buy all our needed oil & gas from them and Castro. The contracts have been finallized, it will just take some time in preparation before drilling can start.

We will not be allowed by Obama to drill offshore, cause it is evil. No problem, they can suck up our share, as well as their share, then we can then buy it back.

Maybe the environmentalists will move the "Sea Shepard" (ftom "Whale Wars") out of Antarctic waters to near Florida, They can quit harassing Japanese whalers, and start throwing bottles of acid at foreign drilling rigs. What do you want to bet they will be met with more than water cannons?

Maybe when ObamaCare takes place, I believe if you went before a "Death Panel" and they found out, you were not only old, but you had evil oil & gas investments in your pension plan, that would move you right on up to the head of the line.
Permalink Reply by Parkdota on August 22, 2009 at 14:51
They want to tax the oil/gas companies, etc. as outlined in the new energy bill bc it's a way of raising taxes without "raising taxes". They know we need/must drill and they also know that they can't directly raise our taxes bc they promised not to. So, if they tax the death out of the oil/gas companies, etc. then they look good by protecting the planet, get mega tax revenue, and don't directly raise individuals' taxes although that's basically what will happen bc the oil/gas companies will push the cost to the consumer. It's a win, win across the board. I don't like it but it is pretty clever.
Permalink Reply by Pipeliner on August 22, 2009 at 15:03
Logan.

You hit the nail squarely on the head.
Permalink Reply by Mac Davis on August 22, 2009 at 18:56
Sort of like, when they start carbon taxes or "greenhouse" taxes, global warming will become even more of a case of "gospel" than it already is.

And don't count on Republicans to put an end to carbon taxes if they get back into power after the government gets a taste of the tax revenue. Once it's in their best interest, they'll become global warming believers, too.
Permalink Reply by Grillin' - MmmMmm on August 24, 2009 at 1:55
Two things tell me this is a bad bill and a very bad idea:

1) it was introduced by a Demoncrat
2) it involves someone from OREGON talking about taxing the oil/gas industry (like they know a darned thing about oil and gas!)

Just one more step in the total destruction of capitalism and the oil and gas industry in the U.S. Tax it here, tax it there, tax it everywhere! When it doubt, tax it again!

I used to pray that we make it through the 4 years of Obama. Now I'm praying we make it to the end of the year! Hopefully the 2010 elections will be different and the anger boiling up in the town hall meetings and the plummetting approval (or should I say disapproval) ratings for all will manifest itself in more balanced House/Senate next year. I'm voting for GRIDLOCK! When Congress DOES NOTHING, that is a very GOOD THING!
Permalink Reply by adubu on August 25, 2009 at 10:11
Where a Skin Head member of the NRA when the county need him!!!!!
Permalink Reply by Grillin' - MmmMmm on August 25, 2009 at 14:50
No no no adubu! That's not how we deal with things here in the good ol' U.S.A. your implied solution is NOT THE ANSWER, no matter what!

Please, don't go down that road or even think about it!
Permalink Reply by P.G. on August 25, 2009 at 16:06
What's the NRA have to do with anything?

If you were a gun owner, you should be thankful for the NRA!
Permalink Reply by Parkdota on August 23, 2009 at 5:33
This article expounds upon the potential effects of government interference with hedging. I read it for free but it appears to want you/us to sign up. If you are a WSJ member you can read it for free. I wouldn't pay to read it, though. It basically says that hedging has saved the rear of many oil/gas companies especially in our down economy and poor prices on natgas. Major players were quoted as saying that without hedging the Haynesville play would not have been possible. The article expects serious opposition to political interference with hedging.

http://online.wsj.com/article/SB125003373396024123.html#mod=rss_wha...
Permalink Reply by Pipeliner on August 24, 2009 at 5:26
Permalink Reply by Digger1 on August 24, 2009 at 15:36
This guy Sen. Ron Wyden, D-Ore., sounds like he knows as much about investing, oil, and gas, as a brick does. This guy must think the way to solve a famine is to go on a diet.

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