[Congressional Record Volume 153, Number 78 (Friday, May 11, 2007)]
[Extensions of Remarks]
[Page E1028]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  INTRODUCTION OF THE ``NO OIL PRODUCING AND EXPORTING CARTELS ACT OF 
                                 2007''

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                         Thursday, May 10, 2007

  Mr. CONYERS. Madam Speaker, today I am introducing the ``No Oil 
Producing and Exporting Cartels Act of 2001'' (``NOPEC''), legislation 
that would effectively force OPEC to begin pricing in a competitive, 
free market manner or face the possibility of being prosecuted for 
civil or criminal antitrust violations. This legislation will establish 
that OPEC's activities are not protected by sovereign immunity and that 
the Federal courts should not decline to hear such a case based on the 
``act of state'' doctrine. I am joined by Representatives Chabot and 
Lofgren, as original cosponsors of this bill.
  For the past year, American consumers have paid exorbitant prices at 
the pump, as gas prices have hit their highest levels since the first 
gulf war. For the past several months, oil prices have remained 
stubbornly high, sitting above $65 at the end of last week. Since 
January of this year, oil prices have climbed more than 20 percent, 
driving gasoline prices in the United States to record levels while 
producing budget surpluses in nations like Saudi Arabia. And as of May 
8, 2007, the average U.S. price of a gallon of gasoline was $3.036, 
just 2 cents short of the record high reached in September 2005 after 
Hurricane Katrina hit the gulf coast.
  The group of 12 nations comprising OPEC represent the classic 
definition of a cartel, and they hold all the cards when it comes to 
oil and gas prices. OPEC accounts for two-thirds of the world's oil 
reserves, and over 40 percent of the world's oil production. Most 
significantly, OPEC's oil exports represent about 70 percent of the oil 
traded internationally. This affords them considerable control over the 
global market. Its net oil export revenues should reach nearly $395 
billion this year, and its influence on the oil market is dominant, 
especially when it decides to reduce or increase its levels of 
production.
  The OPEC nations have for years conspired to drive up prices of 
imported crude oil, gouging American consumers. Their price-fixing and 
supply-limiting conspiracy is a clear violation of U.S. antitrust laws, 
yet we have no recourse for action against these nations. The 
international oil cartel continues to avoid accountability, shielding 
itself behind the veil of sovereign immunity by claiming that its 
actions are ``governmental activity''--which is protected under the 
Foreign Sovereign Immunities Act (``FSIA''), 28 U.S.C. Sec. 1602 et 
seq.-- rather than ``commercial activity.''
  This legislation, the ``No Oil Producing and Exporting Cartels Act'' 
(``NOPEC''), is simple and effective.
  It exempts OPEC and other nations from the provisions of FSIA to the 
extent those governments are engaged in price-fixing and other 
anticompetitive activities with regard to pricing, production and 
distribution of petroleum products.
  It makes clear that the so-called ``Act of State'' doctrine does not 
prevent courts from ruling on antitrust charges brought against foreign 
governments and that foreign governments are ``persons'' subject to 
suit under the antitrust laws.
  It authorizes lawsuits in U.S. Federal court against oil cartel 
members by the Justice Department and the Federal Trade Commission.
  We do not have to stand by and watch OPEC dictate the price of our 
gas without any recourse; we can do something to combat this conspiracy 
among oil-rich nations. I am hopeful that Congress can move quickly to 
enact this worthwhile and timely legislation.

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