[Congressional Record Volume 154, Number 39 (Friday, March 7, 2008)]
[Senate]
[Page S1732]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               OIL PRICES

  Mr. LEAHY. Mr. President, the Organization of Petroleum Exporting 
Countries, OPEC, is an international cartel. It limits the supply of 
oil, which helps keep fuel prices high, and it is one of the major 
causes of the relentless increase in oil prices.
  This week, OPEC members met again. They 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. Can you imagine somebody selling some 
other supplies such as medical equipment or items we need in this 
Nation, electricity. Let's say the utilities all met like that and they 
said: We will hold back electricity so we can raise the prices. There 
would be an antitrust suit, there would be an illegal-restraint-of-
trade suit brought immediately.
  I wish the administration would join me and Senator Kohl and 68 other 
Senators--Republicans and Democrats alike--and 345 Members of the House 
of Representatives of both parties who have voted for NOPEC 
legislation. This 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 energy experts were predicting the price of gas 
might rise to $2.50, to $3 a gallon. The administration did nothing. 
Last October, when American consumers were paying $2.87 per gallon at 
the pump, I warned that oil might be on its way to over $100 a barrel, 
and the administration did nothing. This week, oil reached a record 
$104 a barrel and gas prices averaged $3.16 a gallon. So 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--was not even aware as President of the United States--that many 
are predicting that gas prices will hit $3.50 or even $4 a gallon by 
spring. He simply was not aware of how crippling high prices really are 
for Americans.
  Two facts are painfully clear: Gas 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. It is now evident for all to see that it 
is just another unfulfilled commitment from the administration.
  I said this before and I say it again today: The principal cause of 
the relentless increase in oil prices is not just a natural supply 
issue but market manipulation by OPEC.
  In January, the President's best attempt to increase the supply of 
oil was to tell Saudi King Abdallah that paying more for gasoline hurt 
some American families. Well, yes. It is a lot more than some families, 
it is most. I am pleased the administration acknowledges the effects of 
rising gas prices on Americans, but Saudi Arabia is a founding member 
of OPEC, and they have 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 saying: It is an illegal activity, stop it.
  If the administration truly acknowledges the impact artificially high 
oil prices have on our Nation, he 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 the cartel, 
the President should be able to explain that entities engaging in 
anticompetitive conduct that harms American consumers can expect an 
investigation and they can expect prosecution. When I was a prosecutor, 
it was not enough just to ask people: Don't break the law. You had to 
outright say: If you break the law, we will arrest you.
  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 these members of OPEC off the hook just because their 
anticompetitive practices come with the seal of approval of national 
governments.
  Mr. President, I see the distinguished Senator from Texas on the 
floor. I already asked that he be recognized after me.
  The PRESIDING OFFICER. The Senator from Texas.
  Mr. CORNYN. Mr. President, I ask unanimous consent to speak as in 
morning business for up to 15 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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