Senate energy speculation bill fails key vote

By Tom Doggett

WASHINGTON (Reuters) - Legislation to rein in excessive energy speculation failed a key procedural vote on Friday to move forward in the Senate, and now lawmakers will set aside the bill to consider other legislation.

The House of Representatives may take up its own anti-speculation bill next week, and then lawmakers will get ready to leave for their month-long recess in August.

Sixty "yes" votes were required in the 100-member Senate for the bill to move forward, but the measure received only 50 "yes" votes, while 43 lawmakers opposed.

Senate Democrats said the legislation was needed to give the government new powers to curb speculators, whom many lawmakers accused of being behind the run-up in crude oil and gasoline prices.

Senate Majority Leader Harry Reid said "we'll come back and visit" the legislation, though he did not specify when.

"Republicans once again have run away from an opportunity to provide a short-term solution to our energy crisis," Reid said. "While Democrats have worked to stop greedy speculators who artificially inflate oil prices, Republicans have chosen to protect them."

Senate Republicans strongly opposed the bill because it focused only on speculation, and they argued the legislation should be modified to also boost U.S. oil production by allowing more offshore drilling and developing vast oil shale fields in the West.

Republicans said tight petroleum supplies that were unable to keep up with demand were the cause of high energy prices.  Continued...