Oil Price Reduction Act of 2000

Summary: Directs the President, within 30 days after enactment of this Act, to report to Congress with respect to: (1) the overall economic and security relationship between the United States and each major net oil exporting country (including members of the Organization of Petroleum Exporting Countries (OPEC)); (2) the effect that coordination among such countries with respect to oil production and pricing has had on the U.S. economy and global energy supplies; (3) information on all assistance provided to such countries under the Foreign Assistance Act of 1961 and the Arms Export Control Act (including licenses for the export of defense articles and defense services); and (4) the President's determination as to whether or not each such country is engaging in oil price fixing to the detriment of the U.S. economy.Directs the President, not later than 30 days after submitting the report, to: (1) undertake a concerted diplomatic campaign to convince any country determined to be engaged in oil price fixing to the detriment of the U.S. economy that the current oil price levels are unsustainable and will negatively affect 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. Requires the President to report to Congress with respect to such diplomatic efforts.

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.