[Congressional Record (Bound Edition), Volume 151 (2005), Part 2]
[Extensions of Remarks]
[Page 1982]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCTION OF THE NO OIL PRODUCING AND EXPORTING CARTELS (``NOPEC'') 
                              ACT OF 2005

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                      Wednesday, February 9, 2005

  Mr. CONYERS. Mr. Speaker, today I am introducing the ``No Oil 
Producing and Exporting Cartels (NOPEC)'' Act of 2005, 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.
  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 $48 at the end of last week. Since last 
January, oil prices have climbed more than 15 percent, driving gasoline 
prices in the United States to record levels while producing budget 
surpluses in nations like Saudi Arabia.
  The group of 11 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. Its net oil export revenues should reach nearly $345 
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.

                          ____________________