Earlier this week the House passed a Democratic energy plan that would allow some offshore drilling, but with restrictions. Passed along party lines, the bill would open up areas for oil shale development in Western States and drilling from 50 to 100 miles offshore if a state votes to agree to the drilling. Meanwhile, the bill leaves out a revenue sharing provision for states, which has led many Senate Democrats and Republicans to indicate they cannot support the House bill. Senate Democrats are working on alternative legislation they expect to have ready next week.
The House also voted on legislation to curb market speculation. The bill requires the same rules on offshore oil trading as those in the U.S. market, including limiting the number of futures contracts someone can own, as well as increased information sharing. While the Senate hasn’t been able to agree to the number of amendments on similar legislation, the White House has threatened a veto on the grounds that speculation is not the reason for increased oil prices.
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