[Congressional Record (Bound Edition), Volume 150 (2004), Part 5]
[Extensions of Remarks]
[Page 6438]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCTION OF THE NO OIL PRODUCING AND EXPORTING CARTELS (``NOPEC'') 
                              ACT OF 2004

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                        Thursday, April 1, 2004

  Mr. CONYERS. Mr. Speaker, today I am introducing the ``No Oil 
Producing and Exporting Cartels (NOPEC)'' Act of 2004, legislation that 
subjects a group of competing oil producers, like the OPEC nations, to 
U.S. antitrust law when they act together to restrict supply or set 
prices. I am joined by Representatives Lofgren and McIntyre.
  In recent days, American consumers have paid exorbitant prices at the 
pump, as gas prices have hit their highest levels since the first Gulf 
War. Since January, oil prices have climbed more than fifteen percent, 
driving gasoline prices in the United States to record levels while 
producing budget surpluses in nations like Saudi Arabia.
  The group of eleven nations comprising OPEC are a classic definition 
of a cartel, and they hold all the cards when it comes to oil and gas 
prices. OPEC accounts for more than a third of global oil production, 
and OPEC's oil exports represent about 55 percent of the oil traded 
internationally. This makes OPEC's influence on the oil market 
dominant, especially when it decides to reduce or increase its levels 
of production.
  And this is exactly what OPEC has decided to do again. Just today 
OPEC announced that it will cut its production target by 4 percent--or 
by 1 million barrels per day--starting in April. This move will 
undoubtedly drive our oil and gasoline prices through the roof.
  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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