House approves anti-OPEC bill

[Logan13]

House approves anti-OPEC bill
AP
05/22/07
WASHINGTON - Decrying near-record high gasoline prices, the House voted Tuesday to allow the government to sue OPEC over oil production quotas.

The White House objected, saying that might disrupt supplies and lead to even higher costs at the pump. The Organization of Petroleum Exporting Countries is the cartel that accounts for 40 percent of the world's oil production.

"We don't have to stand by and watch OPEC dictate the price of gas," Judiciary Committee Chairman John Conyers (news, bio, voting record), D-Mich., the bill's chief sponsor, declared, reflecting the frustration lawmakers have felt over their inability to address people's worries about high summer fuel costs.

The measure passed 345-72. A similar bill awaits action in the Senate.

Separtely at a House hearing, lawmakers were told that crude oil prices have played a relatively minor role in the sharp increase in gasoline costs over the last three months, putting the blame on lower gasoline imports, refinery outages and continuing growth in demand from motorists.

Gasoline prices "may ease somewhat," Guy Caruso, chief of the Energy ***artment's statistical agency, told the House Energy and Commerce investigations subcommittee. But he said pressure on gas prices will remain strong "with the hurricane season approaching, continued tight refinery conditions, low gas inventories and increased demand for summer travel."

Nevertheless, the House felt it was important to take on OPEC, the major player in oil production. Member states of OPEC late last year cut production by 1.1 million barrels a day to counter what had been a buildup of world oil stocks.

Conyers accused the OPEC engaging in a "price fixing conspiracy" that has "unfairly driven up the price" of crude oil and, in turn gasoline.

His measure would change antitrust laws so that the Justice ***artment can sue OPEC member countries for price-fixing, and would remove the immunity given a sovereign state against such lawsuits.

But the White House said such suits could spawn retaliatory measures by oil-producing countries and "lead to oil supply disruptions and an escalation in the price of gasoline, natural gas, home heating oil."

The administration urged "diplomatic efforts ... rather than lawsuits in U.S. courts" to address global oil production. The White House said President Bush would be advised to veto the measure if Congress passed it.

Rep. Steve Chabot (news, bio, voting record), R-Ohio, said he was "very disappointed" by the president's opposition. "If gasoline prices remain this high it is going to have a significant impact on the economy."

[Prada]

As much as I wish it would, I highly doubt any change will be made. I dont understand how one can meddle in affairs that are not within their jurisdiction. "Dont like the price of oil? Dont buy it then." Would be there response.

[biglouie250]

that is a pretty arrogant thing to do......I mean why would they ever even respond to any litigation?

the OPEC round table is probably on the floor lau***ng

[singern]

that is a pretty arrogant thing to do......I mean why would they ever even respond to any litigation?

the OPEC round table is probably on the floor lau***ng

I wouldnt call it arrogant, but Ignorant. Opec certainly doesnt give a flying squirrel about any Bill. The US is there biggest customer and they use it against us every chance they get.

Personally I long for the day when the world finds and converts to alternative energy, then OPEC can shove those barrels up there asses, while they beg the world for handouts.

[Superhuman]

OPEC is full of shit... Check this out, this shows gas prices in other countries in USD

http://www.nbc11.com/slideshow/money...02/detail.html

[singern]

OPEC is full of shit... Check this out, this shows gas prices in other countries in USD

http://www.nbc11.com/slideshow/money...02/detail.html

Thats incredible.
So if your an Arab you pay 50cents per gallon, but if your an Infidel you get a camel shoved up your ass while they vacuum out your pockets.....

[mcpeepants]

i'd like to see the breakdown of how much it takes to extract and refine oil. i suspect that the bulk of the cost is in the initial exploration and drilling and after that it doesn't cost but a few cents to extract. It seems that most of cost of oil is because of demand, taxes, and profits.

[gixxerboy1]

I wouldnt call it arrogant, but Ignorant. Opec certainly doesnt give a flying squirrel about any Bill. The US is there biggest customer and they use it against us every chance they get.
Personally I long for the day when the world finds and converts to alternative energy, then OPEC can shove those barrels up there asses, while they beg the world for handouts.

In any other business being the largest customer gets you special deals and some pull. We need for just one week to just use our own oil supply and not buy anything from them.

[biglouie250]

Thats incredible.
So if your an Arab you pay 50cents per gallon, but if your an Infidel you get a camel shoved up your ass while they vacuum out your pockets.....

it goes against economic theory as well. major violations of the purchasing power parity theory. these prices dont self adjust and something should be done about it.

[Kärnfysikern]

Its like a bunch of addicts sueing a drug dealer for charging to much for the blow. OPEC can do whatever the **** they want aslong as the world is on a oil high. I wonder how high oil prices has to become for the good old Fischer-Tropsch process to become economic.

[Act of God]

Personally I long for the day when the world finds and converts to alternative energy, then OPEC can shove those barrels up there asses, while they beg the world for handouts.

+1 It will be a sweet, sweet day when that happens. Terrorists will also lose a component of their funding, which is nice.

[Kärnfysikern]

200 nuclear reactors + a shitload of lithium ion battery cars. That could cut US oil consumption(atleast for the transport section) to half of its present value.

Cost of the reactors would be around 600 billion usd. Less than the cost of the Iraq war.

[Prada]

Its like a bunch of addicts sueing a drug dealer for charging to much for the blow. OPEC can do whatever the **** they want aslong as the world is on a oil high. I wonder how high oil prices has to become for the good old Fischer-Tropsch process to become economic.

Yup....

They should focus on cutting consumption.

[***xxx***]

I wouldnt call it arrogant, but Ignorant. Opec certainly doesnt give a flying squirrel about any Bill. The US is there biggest customer and they use it against us every chance they get.

Personally I long for the day when the world finds and converts to alternative energy, then OPEC can shove those barrels up there asses, while they beg the world for handouts.

well it is very easy: use less gasoline! drive fuel efficient cars. as long as u waste gas and every other energy source like that I say: hard cheese!

we have much more fuel efficient cars in germany - prolly because we pay 7,32$ per gallon...

[Act of God]

You pay that much a gallon because there are tons of taxes worked into the price. You live in a country that is more socialistic, with more government programs that need to be funded. Jacking up the price of gas is one of the ways they do that.

[***xxx***]

You pay that much a gallon because there are tons of taxes worked into the price. You live in a country that is more socialistic, with more government programs that need to be funded. Jacking up the price of gas is one of the ways they do that.

true dat - 80% of the gas price are taxes. still the result is that we have much more fuel efficient cars, houses and machines.

[***xxx***]

and if u r familiar with macroeconomics you know that the "pigou tax" has nothing to do with socialistic or not but with market failure, imperfect competition and the internalisation of externalities=the costs of the pollution for society are in the price for gasoline in Germany. in the US they are not.