Dale over at QandO has a post up implying McCain is a Lefty for wanting to look into the oil futures trading. I could see how, if you only looked at the snippet of speech that Reason's Hit & Run posted, you might get that impression.
But if you look at the full speech in context you'll find this interesting bit that was cut out, by way of explanation.
There is the further problem of speculation on the oil futures market, which in many cases has nothing to do with the actual sale, purchase, or delivery of oil. When crude oil became a futures-traded commodity in the 1980’s, the idea was to afford a measure of protection against the historic volatility of oil pricing. It takes several weeks to ship oil from the Arabian Peninsula to the offshore port of Louisiana. And for the buyers, it helps to know that the price will not suddenly fall while the oil is in transit. A futures contract assures importers that they can sell the oil at a profit.
That’s the theory, anyway. But we all know that some people on Wall Street are not above gaming the system.
If the speculation game is a creation of Congress, then why shouldn’t Congress ensure that there’s no "gaming" going on that is artificially raising prices. I don’t know enough about that whole side of the equation to really comment beyond that.
And then there’s the REST OF THE STORY...
It takes a very short leap in logic to wonder why we produce less and less crude oil, while we use more and more of it, or why politicians talk so much about promoting alternative energy sources, but often do so little to promote these alternatives. A reasonable observer, presented only with these numbers of consumption and production, might draw the conclusion that America has accepted this fate because we have no choice in the matter, or because we have no resources of our own. But just the opposite is true: We do have resources, and we do have a choice.
In oil, gas, and coal deposits, we have enormous energy reserves of our own. And we are gaining the means to use these resources in cleaner, more responsible ways. As for offshore drilling, it’s safe enough these days that not even Hurricanes Katrina and Rita could cause significant spillage from the battered rigs off the coasts of New Orleans and Houston. Yet for reasons that become less convincing with every rise in the price of foreign oil, the federal government discourages offshore production.
At the very least, one might assume, America had surely been building new refineries to achieve a more efficient delivery of gasoline to market, and thereby to lower the prices paid by the American people — especially in the summer season. But the policymakers in Washington haven’t got around to that, either. There’s so much regulation of the industry that the last American refinery was built when Jerry Ford was president.
...
We have proven oil reserves of at least 21 billion barrels in the United States. But a broad federal moratorium stands in the way of energy exploration and production. And I believe it is time for the federal government to lift these restrictions and to put our own reserves to use.
We can do this in ways that are consistent with sensible standards of environmental protection. And in states that choose to permit exploration, there must be an appropriate sharing of benefits between federal and state governments. But as a matter of fairness to the American people, and a matter of duty for our government, we must deal with the here and now, and assure affordable fuel for America by increasing domestic production.
In other words,
Drill Here! Drill Now! Pay Less!
John McCain supports the goals of increased domestic production and refining.
