Home > 106th Congressional Bills > H.R. 3822 (rh) To reduce, suspend, or terminate any assistance under the Foreign Assistance Act of 1961 and the Arms Export Control Act to each country determined by the President to be engaged in oil price fixing to the detriment of the United States eco...H.R. 3822 (rh) To reduce, suspend, or terminate any assistance under the Foreign Assistance Act of 1961 and the Arms Export Control Act to each country determined by the President to be engaged in oil price fixing to the detriment of the United States eco...
106th CONGRESS
2d Session
H. R. 3822
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 23, 2000
Received; read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
AN ACT
To combat international oil price fixing.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Oil Price Reduction Act of 2000''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Oil producing countries, including the nations of the
Organization of Petroleum Exporting Countries (OPEC), took
concerted actions in March and September of 1999 to cut oil
production and hold back from the market 4,000,000 barrels a
day representing approximately six percent of the global
supply.
(2) OPEC, in its capacity as an oil cartel, has been a
critical factor in driving prices from approximately $11 a
barrel in December 1998 to a high of $30 a barrel in mid-
February 2000, levels not seen since the Persian Gulf Conflict.
(3) On February 10, 2000, a hearing before the Committee on
International Relations of the House of Representatives on
``OPEC and the Northeast Energy Crisis'' clearly demonstrated
that OPEC's goal of reducing its oil stocks was the major
reason behind price increases in heating oil, gasoline, and
diesel oil stocks.
(4) During this hearing, the Assistant Secretary in the
Office of International Affairs of the Department of Energy
noted that artificial supply constraints placed on the market
are ultimately self-defeating in so far as they increase
volatility in the market, lead to boom and bust cycles, and
promote global instability, particularly in developing
countries whose economies are extremely vulnerable to sharp
price increases.
(5) These price increases have caused inflationary shocks
to the United States economy and could threaten the global
economic recovery now underway in Europe and Asia where the
demand for oil is rising.
(6) The transportation infrastructure of the United States
is under stress and tens of thousands of small- to medium-sized
trucking firms throughout the Northeast region are on the verge
of bankruptcy because of the rise in diesel oil prices to more
than $2 per gallon--a 43 percent increase in the Central
Atlantic region and a 55 percent increase in the New England
region--an increase that has had the effect of requiring these
trucking firms to use up to 20 percent of their operating
budgets for the purchase of diesel oil.
(7) Many elderly and retired Americans on fixed incomes
throughout the Northeast region of the United States cannot
afford to pay the prevailing heating oil costs and all too
often are faced with the choice of paying the grocery bills or
staying warm.
(8) Several key oil producing nations relied on the United
States military for their protection in 1990 and 1991,
including during the Persian Gulf Conflict, and these nations
still depend on the United States for their security.
(9) Many of these nations enjoy a close economic and
security relationship with the United States which is a
fundamental underpinning of global security and cooperation.
(10) A continuation of the present policies put in place at
the meeting of OPEC Ministers in March and September of 1999
threatens the relationship that many of the OPEC nations enjoy
with the United States.
SEC. 3. POLICY OF THE UNITED STATES.
(a) Policy With Respect to Oil Exporting Countries.--It shall be
the policy of the United States to consider the extent to which major
net oil exporting countries engage in oil price fixing to be an
important determinant in the overall political, economic, and security
relationship between the United States and these countries.
(b) Policy With Respect to Oil Importing Countries.--It shall be
the policy of the United States to work multilaterally with other
countries that are major net oil importers to bring about the complete
dismantlement of international oil price fixing arrangements.
SEC. 4. REPORT TO CONGRESS.
Not later than 30 days after the date of the enactment of this Act,
the President shall transmit to the Congress a report that contains the
following:
(1) A description of the overall economic and security
relationship between the United States and each country that is
a major net oil exporter, including each country that is a
member of OPEC.
(2) A description of the effect that coordination among the
countries described in paragraph (1) with respect to oil
production and pricing has had on the United States economy and
global energy supplies.
(3) Detailed information on any and all assistance programs
under the Foreign Assistance Act of 1961 and the Arms Export
Control Act, including licenses for the export of defense
articles and defense services under section 38 of such Act,
provided to the countries described in paragraph (1).
(4) A determination made by the President in accordance
with section 5 for each country described in paragraph (1).
SEC. 5. DETERMINATION BY THE PRESIDENT OF MAJOR OIL EXPORTING COUNTRIES
ENGAGED IN PRICE FIXING.
The report submitted pursuant to section 4 shall include the
determination of the President with respect to each country described
in section 4(1) as to whether or not, as of the date on which the
President makes the determination, that country is engaged in oil price
fixing to the detriment of the United States economy.
SEC. 6. DIPLOMATIC EFFORTS TO END PRICE FIXING.
(a) Diplomatic Efforts.--Not later than 30 days after the date on
which the President transmits to the Congress the report pursuant to
section 4, the President shall--
(1) undertake a concerted diplomatic campaign to convince
any country determined by the President pursuant to section 5
to be engaged in oil price fixing to the detriment of the
United States economy that the current oil price levels are
unsustainable and will negatively effect global economic growth
rates in oil consuming and developing countries; and
(2) take the necessary steps to begin negotiations to
achieve multilateral action to reduce, suspend, or terminate
bilateral assistance and arms exports to major net oil
exporters engaged in oil price fixing as part of a concerted
diplomatic campaign with other major net oil importers to bring
about the complete dismantlement of international oil price
fixing arrangements described in such report.
(b) Report on Diplomatic Efforts.--Not later than 120 days after
the date of the enactment of this Act, the President shall transmit to
the Congress a report describing any diplomatic efforts undertaken in
accordance with subsection (a) and the results achieved by those
efforts.
SEC. 7. DEFINITIONS.
In this Act:
(1) Oil price fixing.--The term ``oil price fixing'' means
participation in any agreement, arrangement, or understanding
with other countries that are oil exporters to increase the
price of oil or natural gas by means of, inter alia, limiting
oil or gas production or establishing minimum prices for oil or
gas.
(2) OPEC.--The term ``OPEC'' means the Organization of
Petroleum Exporting Countries.
Passed the House of Representatives March 22, 2000.
Attest:
JEFF TRANDAHL,
Clerk.
Pages: 1 Other Popular 106th Congressional Bills Documents:
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