Post by DEERTRACKS on Mar 19, 2007 5:43:30 GMT -5
Grassley wants OPEC members subject to antitrust law
Jim Brown
OneNewsNow.com
March 16, 2007
U.S. Senator Chuck Grassley (R-Iowa) has reintroduced legislation that would allow the federal government to initiate legal action against price fixing by OPEC, the Organization of Petroleum Exporting Countries. Grassley, has been pushing the bill with little success since 2000 with, calling it NOPEC, the No Oil Producing and Exporting Cartels Act.
NOPEC would amend the Sherman Antitrust Act so that the U.S. Justice Department and the Federal Trade Commission could bring lawsuits against oil cartel members for antitrust violations. Grassley notes the twelve OPEC member governments are currently protected from antitrust charges because of a federal court ruling that says OPEC is engaged in “governmental” rather than “commercial” activity when it fixes prices and sets crude oil production limits.
In 2005, OPEC accounted for 41.7% of the world’s oil production. The oil monopoly controls more than three-fourths of the world’s crude oil reserves.
“These guys need to comply with the antitrust laws just like everyone else has to, including Exxon Mobil, you know, all of the oil companies,” Grassley says. “High energy prices are a drag on the economy, a tremendous drag on the economy.”
OPEC was organized in Baghdad, Iraq in 1960 to coordinate the petroleum policies of its member nations. Iran, Iraq, Kuwait, Saudi Arabia and Venezuela were founding members. OPEC is currently headed by anti-American Venezuelan dictator Hugo Chavez.
“That decision by that district court permits oil producers then to hide behind state-owned enterprises, and temper the free-market system by engaging in price-fixing and other illegal anti-competitive activities,” Grassley says.
Grassley has earned a reputation as an advocate for programs to develop renewal energy. He has worked on the current proposed OPEC legislation with Senators Herb Kohl (D-Wisconsin) and Patrick Leahy (D-Vermont).
Jim Brown
OneNewsNow.com
March 16, 2007
U.S. Senator Chuck Grassley (R-Iowa) has reintroduced legislation that would allow the federal government to initiate legal action against price fixing by OPEC, the Organization of Petroleum Exporting Countries. Grassley, has been pushing the bill with little success since 2000 with, calling it NOPEC, the No Oil Producing and Exporting Cartels Act.
NOPEC would amend the Sherman Antitrust Act so that the U.S. Justice Department and the Federal Trade Commission could bring lawsuits against oil cartel members for antitrust violations. Grassley notes the twelve OPEC member governments are currently protected from antitrust charges because of a federal court ruling that says OPEC is engaged in “governmental” rather than “commercial” activity when it fixes prices and sets crude oil production limits.
In 2005, OPEC accounted for 41.7% of the world’s oil production. The oil monopoly controls more than three-fourths of the world’s crude oil reserves.
“These guys need to comply with the antitrust laws just like everyone else has to, including Exxon Mobil, you know, all of the oil companies,” Grassley says. “High energy prices are a drag on the economy, a tremendous drag on the economy.”
OPEC was organized in Baghdad, Iraq in 1960 to coordinate the petroleum policies of its member nations. Iran, Iraq, Kuwait, Saudi Arabia and Venezuela were founding members. OPEC is currently headed by anti-American Venezuelan dictator Hugo Chavez.
“That decision by that district court permits oil producers then to hide behind state-owned enterprises, and temper the free-market system by engaging in price-fixing and other illegal anti-competitive activities,” Grassley says.
Grassley has earned a reputation as an advocate for programs to develop renewal energy. He has worked on the current proposed OPEC legislation with Senators Herb Kohl (D-Wisconsin) and Patrick Leahy (D-Vermont).