Congressman Steve Kagen (D-Appleton) says there's plenty of oil but too much "bad" speculation. He cited recent Congressional testimony by Hedge Fund Manager Michael Masters who says the unprecedented flow of funds into commodities markets is to blame for major inflation.
Kagen says large pension funds pouring massive dollars into commodities has caused distortions in the market. That's because these massive speculators behave differently that other commodities traders because a loophole allows the pension funds to constantly buy but not sell. He believes more oversight is needed through the Commodity and Futures Trade Commission as well as lawmakers creating new legislations to regulate where massive speculators can invest.
The Democrat doesn't support drilling in ANWAR saying it will be up to 20 years before that oil hits the market and may only reduce gas by a penny a gallon.