Senate Democrats push oil speculation bill

"I don't think there is hardly anyone in the United States Senate that believes we shouldn't proceed to address this issue of energy," said Dorgan, chairman of the Senate Democratic Policy Committee and a leading backer of the bill.

"We need legislation to rein in Wall Street traders who unfairly are driving up oil prices," said Senate Majority Leader Harry Reid.

Republicans insist a bill going after speculators also must expand offshore oil drilling and allow development of oil shale fields in the Midwest.

"If we pass the speculator piece alone, Americans will continue to demand a serious solution that gets at supply and demand," said Senate Minority Leader Mitch McConnell. "It's time to use the (oil) resources we have."

President George W. Bush last week lifted an executive order protecting the West and East coasts and Florida from offshore drilling. He also called on Congress to end its own drilling moratorium.

The Interior Department on Tuesday will announce regulations to establish a commercial oil shale program, which could result in 800 billion barrels of new crude on western lands.

Congress has blocked oil shale development. Democrats say oil companies already hold millions of acres under federal leases that can be explored for oil.

The presumptive Democratic presidential nominee, Sen. Barack Obama, opposes opening closed areas to energy exploration. Republican presidential candidate Sen. John McCain says states should choose if they want oil development off their coasts in return for a bigger share of oil royalties.

Meanwhile, a coalition of hunting and outdoor groups on Monday issued recommendations for responsible oil and natural gas exploration on federal lands.