US attempts have re-escalated its position rejecting the policies of the Organization of the Petroleum Exporting Countries (OPEC), by presenting the bill known as “No OPEC” in the Senate Judiciary Committee.
In this context, a group of members of the Senate Judiciary Committee from both parties decided to reintroduce the legislation, today, Wednesday, March 8 (2023), to pressure the Organization of the Petroleum Exporting Countries to stop the measures to cut production, according to a statement published on the website of Republican Senator Chuck Grassly.
Members of the Senate Judiciary Committee – led by Republican Senator Chuck Grassley and Democratic Senator Amy Klobuchar – believe that this step will enhance fairness and stability in the global oil market, by allowing the federal government to take action against price fixing by OPEC.
Addressing OPEC
Members of the Senate Judiciary Committee allege that OPEC is complicit in setting oil prices, and this has led to uncertainty in the markets and higher prices for consumers around the world.
The committee said OPEC needed to know its commitment to stop anti-competitive behaviour.
She added that she will continue to work to develop clean, renewable and alternative domestic energy resources in the United States, as well as a commitment to meet the country’s energy requirements while reducing dependence on imported oil, especially when its price is artificial and illegal.
Republican Senator Chuck Grassley said: “The bill demonstrates to OPEC members that we will not tolerate their flagrant antitrust violations.”
The importance of competition
Democratic Senator Amy Klobuchar said competition in global oil markets helps ensure that American households pay reasonable prices at the gas station.
She added that the Ministry of Justice – under the current law – cannot prevent OPEC from manipulating prices, while “No OPEC” will allow the United States to apply antitrust laws against the 13 largest oil producing countries.
“No one is above the law,” she said. “However, OPEC is willing to engage in illegal and anti-competitive means to enrich its members at the expense of consumers, and it is time to change that.”
While the Chairman of the Senate Judiciary Committee, Dick Durbin, said that the major oil companies present gains and profits to consumers, similar to the OPEC + decision to reduce the production ceiling in late 2022.
He added that the bill would contribute to addressing price fixation by OPEC, putting an end to its anti-competitive behavior, as well as lowering energy prices for households.
“We’ve seen significant bipartisan progress on this issue in Congress, including a 17-4 vote in the Senate Judiciary Committee on legislation.”
Allowing lawsuits
OPEC controls more than 73% of the world’s crude oil reserves.
If passed, the “No OPEC” bill would allow the Justice Department to file lawsuits against OPEC members for antitrust violations.
Several attempts to pass the “No OPEC” law over more than two decades have alarmed Saudi Arabia.
Anas Al-Hajji, an advisor for editing the energy platform, an expert in energy economics, previously referred to America’s use of the “No OPEC” law, in an attempt to address the decision to reduce the production ceiling.
Al-Hajji said that the law may be passed at any moment, especially since it only needs to be voted on and signed by US President Joe Biden.
He explained that the law had already been passed twice in Congress and the Senate, once during the era of former President George W. Bush, but he ignored it, and again during the era of former President Barack Obama, who also ignored it.
Al-Hajji added that former President Donald Trump was a fan of the law, and mentioned it in a book he published before 2011, that is, before he became president of the United States, but he changed his position for fear of the impact on US-Saudi relations.
Al-Hajji added that the problem with this law is that it stipulates that it be passed by a two-thirds majority in Congress and the Senate, and deprives the president of using the right of veto, and then becomes law even in the event of the US president’s disapproval.
Al-Hajji indicated that if the law is passed, US President Joe Biden may be able to use it to bargain with the Gulf states.
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