House passes bill authorising lawsuit against OPEC over prices

[Saddle Bronc 124]

http://www.reuters.com/article/topNews/idU...=22&sp=true

House passes bill to sue OPEC over oil prices

Tue May 20, 2008 2:27pm EDT

By Tom Doggett

WASHINGTON (Reuters) - The House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue OPEC members for limiting oil supplies and working together to set crude prices, but the White House threatened to veto the measure.

The bill would subject OPEC oil producers, including Saudi Arabia, Iran and Venezuela, to the same antitrust laws that U.S. companies must follow.

The measure passed in a 324-84 vote, a big enough margin to override a presidential veto.

The legislation also creates a Justice Department task force to aggressively investigate gasoline price gouging and energy market manipulation.

"This bill guarantees that oil prices will reflect supply and demand economic rules, instead of wildly speculative and perhaps illegal activities," said Democratic Rep. Steve Kagen of Wisconsin, who sponsored the legislation.

The lawmaker said Americans "are at the mercy" of OPEC for how much they pay for gasoline, which this week hit a record average of $3.79 a gallon.

The White House opposes the bill, saying that targeting OPEC investment in the United States as a source for damage awards "would likely spur retaliatory action against American interests in those countries and lead to a reduction in oil available to U.S. refiners."

The administration said less oil going to refineries would limit available gasoline supplies and raise fuel prices.

Foreign investment in U.S. oil infrastructure has declined in the last decade. But the state-owned oil companies of several OPEC nations are owners of U.S. refineries, and those investments could be affected if the legislation becomes law, said Arlington, Virginia-based FBR Capital Markets Corp.

The bill also requires the Government Accountability Office to carryout a study on the effects of prior oil company mergers on energy prices.

The Senate would still have to approve the House measure.

The Senate previously approved similar legislation as part of a broad energy bill. However, the OPEC-suing provision was removed after White House opposition in order to get the underlying energy legislation signed into law.

As the measure is actually not implementable (how does one ENFORCE the verdict here?), WH's veto threat here is irrelevant.

[reeses16 8]

Yeah, I heard about this yesterday. We're all upset about gas prices, but I think this is a mistake. I think its just going to mean even higher prices and damaged relations.

[Saddle Bronc 124]

Yeah, I heard about this yesterday. We're all upset about gas prices, but I think this is a mistake. I think its just going to mean even higher prices and damaged relations.

IMO, right on the first (US could dictate prices in 1950's due to being over 50% of OPEC's sales market by quantity--but it no longer is, despite of still being the largest single by-quantity sales market), wrong on the second (basically, they're just going to ignore it effectively).

[Gaby&Talbert 1]

They will just laugh at the US about this. So what are we going to do? not buy their oil?

[EstebanTrabajos 7]

Keep buying those Hummers people! That's why ama buy one of these. These mean machines run just with the smell of gas hahaha suckaaaas

Edited May 21, 2008 by GueraYTavo

[Sheriff Uling 3]

Keep buying those Hummers people! That's why ama buy one of these. These mean machines run just with the smell of gas hahaha suckaaaas

You joke, but I'm actually considering buying one of this for my commute to and from work. I use up practically all the gas going to and from work anyway, like most folks do.

Edited May 21, 2008 by Sheriff Uling

[Pinocchio Liberal 268]

Just the liberal congress trying to make it look like their doin somethig! Sheesh.

[SMOKE 1,426]

Keep buying those Hummers people! That's why ama buy one of these. These mean machines run just with the smell of gas hahaha suckaaaas

the thought of an accident scares me.....thats why i won't ride a motorcycle either.

[HAL 9000 96]

Keep buying those Hummers people! That's why ama buy one of these. These mean machines run just with the smell of gas hahaha suckaaaas

You joke, but I'm actually considering buying one of this for my commute to and from work. I use up practically all the gas going to and from work anyway, like most folks do.

Did you see the CNN article about people buying up Geo Metros?

Keep buying those Hummers people! That's why ama buy one of these. These mean machines run just with the smell of gas hahaha suckaaaas

the thought of an accident scares me.....thats why i won't ride a motorcycle either.

At least Smart Cars are doing much better at all 4 crash tests than many coupes out there... bad thing is the wait time to get one.

But yeah back to OT it looks like the measure is symbolic more than anything else.

[Kevin and 10]

Non-binding and useless feel good legislation is a waste of OUR money. I'm glad I bought a 40 MPG car a couple years ago.

[GaryC 7]

Like this is going to make any difference. Congress wants more oil? Let us drill in Alaska and offshore. Otherwise just stfu.

[Pinocchio Liberal 268]

Like this is going to make any difference. Congress wants more oil? Let us drill in Alaska and offshore. Otherwise just stfu.

Roger the stfu!

[Kevin and 10]

Like this is going to make any difference. Congress wants more oil? Let us drill in Alaska and offshore. Otherwise just stfu.

[Saddle Bronc 124]

Did you see the CNN article about people buying up Geo Metros?

Is that model still in production?

[HAL 9000 96]

Did you see the CNN article about people buying up Geo Metros?

Is that model still in production?

Nay... although with oil exec profits the way they are, perhaps it should... It wasn't cool enough back then but I guess its having a last laugh now!