Leahy: As OPEC Again Says No To President Bush,
U.S.
Should Respond By Enacting The “NOPEC Bill”
. . . Judiciary
Committee Chairman Urges Bush To Drop Opposition To Bill
[WASHINGTON (Friday, March 7, 2008) – This week, for the second time
this year, the Organization of Petroleum Exporting Countries (OPEC)
rejected appeals from President Bush to increase its supplies of oil
(“President Fails To Budge OPEC On Production,” NYT, March 6,
p.1A). The President had even traveled to Saudi Arabia in January
to make the request. The chairman of the Senate Judiciary
Committee, Sen. Patrick Leahy (D-Vt.), took the Senate Floor Friday
to call on the President to finally end his opposition to the
committee-passed “NOPEC Bill,” which would allow U.S. antitrust laws
to be used when oil prices are fixed by cartels like OPEC. With
oil prices reaching new record highs this week and with gas prices
also stuck at high levels in Vermont and other states, Leahy called
for urgent action by the White House to help provide Americans with
relief at the pumps and to cooperate with the House and Senate on
alternative energy steps forged on Capitol Hill. The Senate
Judiciary Committee last April – almost a year ago -- passed the No
Oil Producing and Exporting Cartels Act (NOPEC) which would allow
the federal government to take legal action against any foreign
state, including members of OPEC, for price fixing and for
artificially limiting the amount of available oil. The bill is
still pending further action, stalled by White House and Republican
opposition. Leahy’s Senate Floor remarks are below:]
Statement Of Sen. Patrick Leahy (D-Vt.)
On Oil Prices, OPEC, And The “NOPEC” Bill
Senate Floor
Friday, March 7, 2008
The Organization of Petroleum Exporting Countries (OPEC), an
international cartel that limits the supply of oil to keep fuel
prices high, is the principal cause of the relentless increase in
oil prices. This week, OPEC members again met and refused to
increase the supply of oil. If such a meeting took place in almost
any other context, the participants would likely be arrested for an
illegal conspiracy in restraint of trade.
The administration should join with me, Senator Kohl, and 68 other
United States Senators and 345 Members of the House of
Representatives who have voted for NOPEC legislation, which would
hold accountable certain oil producing nations for their collusive
behavior, which has artificially reduced the supply and inflated the
price of fuel.
In April 2004, when American consumers were paying $1.78 per gallon
at the pump, I warned that energy experts were “predicting that the
price of gas may rise to $2.50 or $3.00 per gallon.” This
administration did nothing. Last October, when American consumers
were paying $2.87 per gallon at the pump, I warned that “oil may be
on its way to over $100 a barrel.” This administration did
nothing.
This week, oil reached a record $104 a barrel, and gas prices
averaged $3.16 a gallon. How much will families in Vermont and
across America have to pay to heat their homes in this long winter,
or to drive to work, before the President takes action? Further, at
a news conference last week, the President was not even aware that
some are predicting that gas prices will hit $3.50 or even $4.00 a
gallon by the spring. He was simply not aware at how cripplingly
high these prices really are for Americans.
Two facts are painfully clear: gasoline prices have more than
doubled since the President took office, and the President has no
plan to protect consumers and our economy. He promised the American
people that, with his family’s oil ties, he would effectively be
able to jawbone OPEC into being nice to him, and that they would
raise production to lower prices if he asked them. That is now
evident for all to see that this is just another unfulfilled
commitment from this administration.
I have said this before, and I say it again today: the principal
cause of the relentless increase in oil prices is not a natural
supply issue, but market manipulation by the OPEC. In January, the
President’s best attempt to increase the supply of oil was to tell
Saudi King Abdullah that “paying more for gasoline hurts some
American families.” Indeed it does, and I am pleased the
administration acknowledges the effects of rising gas prices on
Americans. But Saudi Arabia is a founding member of OPEC, which has
every incentive to limit output and keep prices artificially high.
The futility of going to an OPEC member and pleading for it to raise
output is now obvious to all. Instead of President Bush holding
hands with the oil cartel—literally and figuratively – the
administration should join us in trying to protect the interests of
the American people.
It is important to emphasize again that if a meeting such as the
OPEC meeting that took place this week happened in almost any other
context, the participants would likely be arrested for an illegal
conspiracy in restraint of trade. Yet this President stood in front
of the King of the largest participant in the oil cartel and asked
for relief, instead of demanding an end to this illegal activity.
If the administration truly acknowledges the impact artificially
high oil prices have on our Nation, it should join with this
Congress and support NOPEC legislation. Instead of pleading for
help, the next time the President of the United States meets with
members of a cartel, the President should explain that entities
engaging in anticompetitive conduct that harms American consumers
can expect investigation and prosecution.
We cannot claim to be energy independent while we permit foreign
governments to manipulate oil prices in an anticompetitive manner.
It is wrong to let members of OPEC off the hook just because their
anticompetitive practices come with the seal of approval of national
governments.
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