[Congressional Record Volume 146, Number 81 (Friday, June 23, 2000)]
[Extensions of Remarks]
[Page E1103]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          THE INTERNATIONAL ENERGY FAIR PRICING ACT, H.R. 4732

                                 ______
                                 

                        HON. BENJAMIN A. GILMAN

                              of new york

                    in the house of representatives

                         Friday, June 23, 2000

  Mr. GILMAN. Mr. Speaker, today I am introducing ``The International 
Energy Fair Pricing Act of 2000'' which will help to ensure that this 
Administration adopts a consistent and comprehensive policy of 
opposition to the Organization of Petroleum Exporting Countries, OPEC 
and other similar cartels.
  In the ongoing energy crisis facing this nation, it keeps the 
spotlight where it belongs--on this international energy cartel. With 
the enactment of this measure, the Administration will no longer be 
able to go back to business as usual in supporting back room 
arrangements and cartel-like behavior.
  It specifically directs the President to make a systematic review of 
its bilateral and multilateral policies and those of all international 
organizations and international financial institutions to ensure that 
they are not directly or indirectly promoting the oil price fixing 
activities policies and programs of OPEC.
  It would require the Administration to launch a policy review of the 
extent to which international organizations recognize and or support 
OPEC and to take this relationship into account in assessing the 
importance of our relationship to these organizations. It would set up 
a similar review of the programs and policies of the Agency for 
International Development to ensure that this agency has not indirectly 
or inadvertently supported OPEC programs and policies.
  Finally, it would examine the relationship between OPEC and 
multilateral development banks and the International Monetary Fund and 
mandates that the U.S. representatives to these institutions use their 
voice and vote to oppose any lending or financial support to any 
country that provides support for OPEC activities and programs.
  A copy of the bill follows:

                               H.R. 4732

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``International Energy Fair 
     Pricing Act of 2000''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) The Organization of Petroleum Exporting Countries 
     (OPEC), in its capacity as an oil cartel, has been a critical 
     factor in withholding production from the market and driving 
     up oil prices approximately 300 percent from January 1999 to 
     June 2000.
       (2) Nationwide, gasoline prices have increased 
     approximately 60 cents a gallon since the beginning of 1999 
     with crude oil prices increasing 48 cents over this same time 
     period.
       (3) The Department of Energy's weekly survey showed the 
     average cost of gasoline in the United States increased 5 
     cents a gallon to $1.68 from the second to the third week of 
     June 2000, a record high for a fourth week in a row.
       (4) Price declines in the cost of oil in April 2000, 
     following the March 2000 OPEC meetings, have been reversed 
     because OPEC output did not meet global demand and supply 
     conditions. When OPEC members met in March 2000, quotas were 
     not set high enough for refiners around the world to rebuild 
     crude stocks depleted by winter heating demand.
       (5) Crude oil stocks in the United States are only 
     31,000,000 barrels above the lowest operational inventories 
     ever observed in recent times (the equivalent of 2 days of 
     refinery operations) and 20,000,000 barrels under the normal 
     range for the month of June.
       (6) The United States needs to make a systematic review of 
     its bilateral and multilateral policies and those of all 
     international organizations and international financial 
     institutions to ensure that these policies are not directly 
     or indirectly supporting the oil price fixing activities, 
     policies, and programs of OPEC.

     SEC. 3. POLICY OF THE UNITED STATES.

       (a) Policy With Respect to International Organizations.--It 
     shall be the policy of the United States that the extent to 
     which each international organization supports, or otherwise 
     recognizes, OPEC will be an important determinant in the 
     relationship between the United States and this organization.
       (b) Policy With Respect to International Financial 
     Institutions.--It shall be the policy of the United States 
     that the extent to which each international financial 
     institution supports or otherwise recognizes OPEC, will be an 
     important determinant in the relationship between the United 
     States and the institution.
       (c) Policy With Respect to the Energy and Development 
     Activities.--The United States should carefully review all 
     the energy development projects and programs administered by 
     the United States Agency for International Development in 
     developing countries to ensure that these projects and 
     programs do not indirectly or inadvertently support the 
     activities of OPEC.

     SEC. 4. POLICY TOWARD THE INTERNATIONAL FINANCIAL 
                   INSTITUTIONS.

       (a) Report to the Congress on Activities of the 
     International Financial Institutions.--No later than 90 days 
     after the date of the enactment of this Act, the President 
     shall transmit to the Congress a report that contains the 
     following:
       (1) A description of any loan, guarantee, or technical 
     assistance provided or to be provided by any international 
     financial institution that does or would directly or 
     indirectly support any activity or program of OPEC or any 
     other cartel, or any member of OPEC or any other cartel, 
     engaging in production cutbacks or other market-distorting 
     practices.
       (2) A description of the energy sector loans of, technical 
     assistance provided by, and policies of each international 
     financial institution, and an analysis of the extent to which 
     the loans, assistance, or policies promote the complete 
     dismantlement of international oil price fixing arrangements 
     and the development of a market-based system for the 
     exploration, production, and marketing of petroleum 
     resources.
       (b) United States Position in International Financial 
     Institutions.--The United States Executive Directors at each 
     international financial institution shall use the voice, 
     vote, and influence of the United States to oppose the 
     provision of any loan, guarantee, or technical assistance by 
     the institution that would directly or indirectly support the 
     activities and programs of OPEC or any other cartel, or any 
     member of OPEC or any other cartel, engaging in production 
     cutbacks or other market-distorting practices.

     SEC. 5. REPORT RELATING TO THE ORGANIZATION FOR ECONOMIC 
                   COOPERATION AND DEVELOPMENT (OECD).

       Not later than 90 days after the date of the enactment of 
     this Act, the President shall prepare and transmit to 
     Congress a report that--
       (1) describes the efforts of the Organization for Economic 
     Cooperation and Development (OECD) to review the market-
     distorting practices of international cartels, including 
     OPEC, and recommends specific actions that the member 
     countries of the OECD can undertake to combat such practices; 
     and
       (2) describes actions to be taken by the United States to 
     ensure that the OECD expands upon its activities and programs 
     regarding the operation of international cartels.

     SEC. 6. AMENDMENT TO THE FOREIGN ASSISTANCE ACT OF 1961.

       Section 106 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151d) is amended by adding at the end the following:
       ``(g)(1) In carrying out the activities under this chapter, 
     the President shall--
       ``(A) ensure that amounts made available to carry out this 
     chapter are not used to support, directly or indirectly, the 
     programs, activities, and policies of the Organization of 
     Petroleum Exporting Countries (OPEC), or any other cartel, or 
     any member of OPEC or any other cartel, if OPEC or such other 
     cartel engages in oil price fixing; and
       ``(B) certify annually to the appropriate congressional 
     committees that the requirement of subparagraph (A) has been 
     met for the prior fiscal year. ``(2) In this subsection--
       ``(A) the term `appropriate congressional committees' 
     means--
       ``(i) the Committee on International Relations and the 
     Committee on Banking and Financial Services of the House of 
     Representatives; and
       ``(ii) the Committee on Foreign Relations and the Committee 
     on Banking, Housing, and Urban Affairs of the Senate; and
       ``(B) the term `oil price fixing' has the meaning given 
     such term in section 7(2) of the International Energy Fair 
     Pricing Act of 2000.''.

     SEC. 7. DEFINITIONS.

       In this Act:
       (1) International financial institution.--The term 
     ``international financial institution'' has the meaning given 
     in section 1701(c)(2) of the International Financial 
     Institutions Act.
       (2) Oil price fixing.--The term ``oil price fixing'' means 
     participation in any agreement, arrangement, or understanding 
     with other countries that are oil exporters to increase the 
     price of oil or natural gas by means of, inter alia, limiting 
     oil or gas production or establishing minimum prices for oil 
     or gas.
       (3) OPEC.--The term ``OPEC'' means the Organization of 
     Petroleum Exporting Countries.
       (4) Petroleum resources.--The term ``petroleum resources'' 
     includes petroleum and natural gas resources.





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