CBS "Early Show" - Transcript

Interview

MS. RODRIGUEZ: Senator Olympia Snowe is a Republican from Maine. She joins us.

Good morning to you, Senator.

SEN. SNOWE: Good morning, Maggie.

MS. RODRIGUEZ: Certainly we have different governments than these countries where gas is cheaper, but they're doing a much better job of keeping their prices in check. Given the dire situation here in our country, can't our government step in and stop listening to the lobbyists and stop arguing about the role of speculators and do something substantive to bring down our prices?

SEN. SNOWE: Well, it's a combination. Obviously it's going to require a comprehensive, balanced energy policy, including all alternatives. They're going to be important to encouraging innovation and entrepreneurship, to develop those alternatives. But at the same time, we have an obligation to address the role of speculation in these energy futures markets.

That's why Senator Feinstein and I cracked down on the Enron loophole. There was an egregious loophole that exempted -- (inaudible) -- trading of energy futures on the markets from oversight by the Commodity Futures Trading Commission that oversees these markets. That recently was enacted into law. We should also --

MS. RODRIGUEZ: Yeah, but as you know, that didn't do the trick. Speculators are still alive to manipulate the price of gasoline.

SEN. SNOWE: Well, the point is, the Commodity Futures Trading Commission now has the authority to investigate and to make sure what they're doing on the electronic trading is not cornering the market, as we saw with Amaranth, the hedge fund that cornered 40 percent of natural gas contracts in 2006, or Enron, that captured the electricity market that resulted in the collapse of the electricity grid in California.

So we also need to require the U.S. oil futures contracts that are trading in foreign exchanges to adhere to the same 18 core principles that are required here in the United States in the New York and the Chicago Mercantile. It's the same regulation.

MS. RODRIGUEZ: Senator, I'm sorry to interrupt, but we only have a few seconds and it sounds like a lot that needs to be done. Tell us, the consumers, when you think that Congress might be able to reach a proposal, an agreement on a proposal, and when we might start to see a difference.

SEN. SNOWE: Well, you know, I think right now, as a matter of fact. And the fact is we're going to be addressing those issues. You know, I call on the president and the congressional leadership to convene a bipartisan summit, an emergency summit, to address this burgeoning crisis and to join forces and do it together.

And certainly we're going to be addressing energy this month. It's long overdue, frankly, without a doubt. But we have an obligation to take every step possible. And I think it can happen in speculation that contributes as much as $25, if not $60, to a barrel of oil based on testimony and studies submitted to the Congress.

MS. RODRIGUEZ: Well, we hope you are right. Senator Olympia Snowe, thank you very much.

SEN. SNOWE: Thank you.

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