House Passes Bill To Sue OPEC over Oil Prices!

House Passes Bill To Sue OPEC over Oil Prices!

uk.reuters.com...

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.

(visit the link for the full news article)


Mod Edit: Fixed Link


[edit on 5/20/08 by FredT]

[edit on 5/20/08 by FredT]

This is long overdo IMO.

But while this is a step in the right direction, they also need to go after the "speculation" markets who are even MORE responsible for jacking up prices!

And damn it already---Start investing more in ALTERNATIVE ENERGY already!

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.

www.rawstory.com
(visit the link for the full news article)

but the White House threatened to veto the measure.

They mean the "Oil Barrons" in the White House. Cant let the money flow end.

[edit on 20-5-2008 by ATruGod]

Unbelievable! OPEC has increased production previously to satisfy the US administration and the higher price is due, for the most part, to the falling US dollar and, as previously mentioned, the city speculators.

OPEC could of course shrug this off, tell the US to take a hike and start trading in other currencies a lot sooner, as well as selling more to the developing nations at a lower price. One only has to look at the obscene profits being posted by the big oil companies to see where the money from the increased fuel prices is really going. Perhaps congress could start with them first, after all, many of them are based in the US so it'll be easier to go after them.

I mean, what are they gonna do? Invade all the OPEC countries?

reply to post by Britguy


Good points. I agree, and I think most everyone nowadays knows that the speculation markets are what are RAPING us. That system needs to be investigated and overhauled VERY quickly IMO.

Although I'm not going to shed any tears for OPEC or the Oil big-wigs either.

Like you said, they'll probably just follow suit to Iran and switch currencies altogether, or try and cut us off like Venezuela. Then we're REALLY screwed.

This is all political hogwash of an election year. Who's at fault here if not the same government that didn't learn their lessons from the embargo of the 70's and rejected to raise the miles per gallon limits for car, rejected to pursue alternative sources of energy, even went as far as stoping the production of the electric car.

We are getting what we deserve, hopefully this time we learn our lesson.

I have to agree with Britguy's points entirley.

I also have to question how suing OPEC is going to lower oil prices? Lets face it people the USofA consumes over 20 million BOPD while we only produce about 8.6 million BOPD we've been living in "the oil age" for quite some time now. Cheap energy brings an abundance of goods, look around you, how many things are petrol free? practically everything we use,own,see,touch is a byproduct or has been touched by petrol in some way. The basic fact is the markets are only now catching up to our demand in oil. And this is not just at your local gas pump, everything from the glass you drink from to the shoes you wear use oil or byproducts.

Think about it.

[edit on 20-5-2008 by nuffsaid420]

reply to post by DimensionalDetective


OPEC must be laughing their arses off. I would. The world is.

How's this for a joke: A capitalist nation suing the oil producers for practicing free enterprise?


How will OPEC respond?

Stop selling oil to America at any price until the court case is settled.


Where will this case be heard?

World court.


America is really stomping on those 'axis of evil' nations!

DD, don't always agree with you but have to wholeheartedly thank you for bringing this news to ATS.

I don't know if the bill will do any good, or is meant to be symbolic, but I hope something good comes out of it.

As for the threat of a veto, this just highlights one of my 3 strikes against Bush - energy policy, illegal immigration, and conduct of the war.

Come on, Bush. If this is truly a bad deal for the American people, then get on TV and do your best to explain why. I'm sure you'd have everyone's attention.

reply to post by garyo1954



Can you please explain to me how OPEC runs under free enterprise?

so how , pray tell , will the US `enforce` any such ruling? `hey Saudi Arabia we`ve sued for for $10 billion USD in damages now pay up` - no , we sell oil NOW in euro and watch your currency collapse over night......

symbolic rubbish - as britguy has said - will they invade everyone - might just be the master plan after all....


which reminds me - im rather sure saudi allready has nukes ontop of those IRBM`s they have in a base protected by special forces...

I'm sure that OPEC is quaking in it's boots.

They will just laugh and raise the price.

The US has no jurisdiction in this matter. So even if the courts make a decision it will be unenforceable.

If you try to take assets in the US of Saudi Arabia how will they respond? Raise the price or cut production.

Bend over America.... Here it comes.

The fact is that not everything is subject to free enterprise. Utilities are different. Food is different. There are certain things that should not be subject to the free market because they are necessities. On the other hand, one could make the case that this will force us to find other ways of creating energy. But I don't think we've achieved that so far. Maybe when the price $8/gallon, we'll do something.

Oh, and just because the House has passed this doesn't mean that the Senate will. I think they do this on purpose as political posturing.

What a joke :shk:

We have tons of issues that need to be resolved here in this country and the morons in Washington are wasting time with this crap?

reply to post by xxpigxx


Free enterprise is the ability to set the price of the product you produce, is it not?

If I produce widgets, I set the price of my widgets.

Now, political machinations are like the guy behind the curtain. We aren't supposed to know about him. And anyone with good sense trying to win this case would pull out every stop available to make sure those policies never see the light of day in any equal/honorable/fair courtroom.

Thanks for asking!

Originally posted by scarlett1125
The fact is that not everything is subject to free enterprise. Utilities are different. Food is different. There are certain things that should not be subject to the free market because they are necessities. On the other hand, one could make the case that this will force us to find other ways of creating energy. But I don't think we've achieved that so far. Maybe when the price $8/gallon, we'll do something.

I agree scarlett1125.

That said, OPEC is not an American company. They do not fall under Federal law.

The government could win any suit it wanted in Federal court, but on the other side of the border, it means squat.

I have to applaud the Germans here. Back about 1999-2001 America wanted to extradite certain persons living overseas. And one of those persons lived in Germany. The government presented its case and its federal indictment against the individual fully expecting the German judge to crumble and return this fellow.

The court however, ruled Germany was a sovereign nation and the United States federal indictment did not apply within the borders of Germany.

reply to post by garyo1954


I do not understand, though, how it can be considered free enterprise if oil is a necessity, and the price is set on pure speculation.

Well, its good to know that the democrats in Congress have absolutely nothing better to do with their time than threaten unenforceable lawsuits against OPEC. Idiots.

reply to post by vor78


Cant really pin this one on the Dems eh? Looks like it has Bi-Partisan support :shk: and the White House is already making veto noise.

However, what most people do not realize that the price OPEC is charging IS not the spot price that speculators are driving up every day. If we are going to blame OPEC, then ANY oil company like Chevron, EXXON, etc. are all guilty of this .

Originally posted by xxpigxx
reply to post by garyo1954

 

I do not understand, though, how it can be considered free enterprise if oil is a necessity, and the price is set on pure speculation.

Not everything we call a necessity in America is a necessity.

There are places in this world where gas is not sold at a convenience store. You buy your petro from a person sitting under a shade tree with a few 1 liter bottles, (actual one liter bottles). No pump, no meter, no underground tank, no electricity, and you don't get to choose which soft drink you want from a cooler!

These are people who survive without all the modern conveniences we call necessities in America. There are people around the world whose main transportation (up to this point) has been bicycles. Air, for their tires, is more a necessity than gas.

China, no, let's just say emerging nations which are becoming more industrialized have had an impact on the oil market as well.

When you have plenty of product and only one or two customers, your product isn't worth much. On the other hand, when you have less product and lots more customers you can raise the price.

You can even be rude to your former customers! Because all this time they have been taking advantage of your generosity, but now because you won't sell your product to them at their price, they have called you an axis of evil!