Oil market speculation is dramatically driving up oil prices and giving consumers a major pain at the pump, environmental groups said this week in a letter to Congress.

The 14 groups are urging Congress to adopt policies that will rein in oil speculation, restore accountability in the oil commodity markets, and give Americans better choices to help reduce energy costs across the board.

The groups include: Alaska Wilderness League, Defenders of Wildlife, Earthjustice, Environment America, Gulf Coast Environmental Defense, Friends of the Earth, League of Conservation Voters, National Audubon Society, LegaSea, Sierra Club, The Wilderness Society, Pacific Environment, Public Citizen, Planning and Conservation League.

"Americans need real relief, not recycled rhetoric," said Robert Dewey, vice president for government relations at Defenders of Wildlife. "More oil drilling on America's coastlines and pristine lands won't save Americans money - even the Bush Administration admits that. What we need is to rein in the rampant oil speculation that's driven prices through the roof."

Last month, Gerry Ramm, an Inland Oil Company senior executive, testified before Congress that "excessive speculation on energy trading facilities is the fuel that is driving this runaway train in crude oil prices."

Over the past 20 years, the number of speculators who trade oil on paper has tripled. These speculators buy up large amounts of oil and sell it back to each other over and over again - a single barrel of oil may be traded over 20 times before it is actually used. The resulting inflated oil prices end up penalizing drivers at the gas pump.

Closing the so-called "Enron Loophole" and other sweetheart deals for speculators could dramatically reduce the price drivers are paying at the pump, today's letter states. Americans want to see this solution implemented now - over the past week alone, well over one million Americans have contacted Congress to request immediate action to reduce oil price speculation.

"Addressing the problem of oil speculation is a far better deal for the American public than trading away our coasts and other special places to help further pad the profits of Big Oil," said Dewey. "Congress will be considering legislation to tackle oil speculation as early as this week, and we're urging our members and activists to voice their support for addressing the issue along with the million-plus Americans who have done so already."

Online Video: Stop Oil Speculators Now

Link: Stop Oil Speculators, Send Congress An S.O.S.

7/18/2008