Oil Price Reduction Act of 2000

Summary: Directs the President 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  Organization of Petroleum Exporting Countries (OPEC) countries); (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 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) provided to such countries; and (4) whether or not each country is engaging in oil price fixing to the detriment of the U.S. economy.
Requires the President, pursuant to such report, to reduce, suspend, or terminate such assistance to each country determined by the President to be engaged in oil price fixing to the detriment of the U.S. economy.
Expresses the sense of Congress that the United States should continue to undertake a diplomatic campaign to convince: (1) all major net oil exporting countries that the current oil price levels are unsustainable and will negatively affect global economic growth rates in oil consuming and developing countries; and (2) other major net oil importing countries to join in multilateral efforts 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.

    The 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 of 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 
        a 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 that its political, economic, and 
security relations with countries that are major net oil exporters will 
be determined to a great extent by whether such countries engage in oil 
price fixing.
    (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 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. DETERMINATIONS BY THE PRESIDENT OF MAJOR OIL EXPORTING 
              COUNTRIES ENGAGED IN PRICE FIXING.

    The report submitted pursuant to section 4 shall include--
            (1) 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; and
            (2) a memorandum of justification with respect to each 
        determination submitted in accordance with paragraph (1), 
        including in the case of any determination that a country 
        described in section 4(1) is not engaged in oil price fixing to 
        the detriment of the United States economy an explanation 
        whether that determination rests on a finding that the country 
        is not engaged in oil price fixing, or a finding that it is 
        engaged in oil price fixing but that price fixing is not 
        detrimental to the United States economy.

SEC. 6. REDUCTION, SUSPENSION, OR TERMINATION OF UNITED STATES 
              ASSISTANCE.

    Not later than 10 days after the date on which the President 
transmits to the Congress the report pursuant to section 4, the 
President shall reduce, suspend, or terminate assistance under the 
Foreign Assistance Act of 1961 and the Arms Export Control Act, 
including the license for export of defense articles or defense 
services under section 38 of such Act, to each country determined by 
the President pursuant to section 5 to be engaged in oil price fixing 
to the detriment of the United States economy.

SEC. 7. DIPLOMATIC EFFORTS.

    (a) Efforts With Respect to Oil Exporting Countries.--It is the 
sense of the Congress that the United States should continue to 
undertake a concerted diplomatic campaign to convince all countries 
that are major net oil exporters that the current oil price levels are 
unsustainable and will negatively effect global economic growth rates 
in oil consuming and developing countries.
    (b) Efforts With Respect to Oil Importing Countries.--It is the 
sense of Congress that the United States should undertake a concerted 
diplomatic campaign to convince other countries that are major net oil 
importers to join in multilateral efforts to bring about the complete 
dismantlement of international oil price fixing arrangements.
    (c) Report on Diplomatic Efforts.--Not later than 90 days after the 
date of enactment of this Act, the President shall transmit to the 
Congress a report describing the United States diplomatic efforts 
undertaken in accordance with subsection (a) and (b), 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.