House Votes to Allow U.S. to Sue OPEC
"No Oil Producing and Exporting Cartels Act of 2007," or NOPEC, takes aim at OPEC crude oil price manipulation.
Compiled by staff
Published: May 24, 2007
The U.S. House of Representatives voted 345-72 Tuesday in favor of allowing the Justice Department to sue members of the Organization of the Petroleum Exporting Countries in U.S. courts.
The bill - the "No Oil Producing and Exporting Cartels Act of 2007" or NOPEC - specifically takes aim at OPEC price manipulation, which sponsor John Conyers, D-MI., calls "OPEC's price-fixing conspiracy."
U.S. prices at the pump are at an all-time, inflation-adjusted high of $3.22 a gallon. About 60% of oil consumed by the U.S. - the world's largest crude oil consumer - comes from imports.
OPEC accounts for over 40% of the world's oil production - and two thirds of the world's oil reserves.
The bill has been passed three times in the Senate this decade, and may have the momentum to do so again this year. The difference now is the House support - but if the bill is sent to the President, the White House is threatening a veto.
"This bill has the potential to lead to oil supply disruptions and an escalation in the price of gasoline, natural gas, home heating oil and other sources of energy," the White House said in a statement. The administration's argument is that the measure would backfire and push energy prices higher by reducing the amount of oil in U.S. reserves.
Permalink: Click here
|