H. Res. 500 

In the House of Representatives, U. S., 

July 11, 2007. 

Whereas the United States currently is largely self-sufficient 

in natural gas but is projected to greatly increase its 

usage over time, which could create a growing dependence on world supply; 

Whereas the cost of natural gas has approximately tripled 

since 2000 and has had a significant negative impact on 

United States manufacturers and on employment in manufacturing; 

Whereas in 2004 alone the rising cost of natural gas was responsible for the closure of scores of chemical companies 

in the United States and the loss of over 100,000 jobs; 

Whereas chemicals, plastics, and advanced composite materials are used extensively for military and commercial applications and are crucial components of the United 

States defense industrial base, which is the foundation of 

United States national security; 

Whereas Europe, as well as Japan, South Korea, and other 

United States allies, are heavily dependent on imported 

natural gas, and countries such as China and India are 

rapidly increasing their reliance on foreign suppliers; 
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•HRES 500 EH 

Whereas the supply of natural gas is controlled by a relatively 

small number of countries, including Iran, Russia, Venezuela, Bolivia, Algeria, and Qatar, among others; 

Whereas these and other countries have established an organization known as the Gas Exporting Countries Forum 

(GECF) to promote coordination on policies regarding 

natural gas; 

Whereas the members of the GECF are estimated to possess 

over 70 percent of global gas reserves and over 40 percent of global production; 

Whereas several of these countries have governments hostile 

to the United States; 

Whereas on January 29, 2007, Iranian Supreme Leader Ayatollah Khamenei proposed that Russia and Iran cooperate 

to establish a cartel for natural gas, which has been 

termed a ‘‘gas OPEC’’; 

Whereas Russian President Putin has expressed great interest in the formation of a cartel of this type; 

Whereas Venezuelan President Hugo Chavez has declared his 

strong support for the proposed cartel and described it as 

an expansion of his efforts to establish a similar cartel 

in the Western Hemisphere; 

Whereas Iranian officials have made clear their interest in 

using this ‘‘gas OPEC’’ as an instrument for political 

purposes; 

Whereas Russia has repeatedly demonstrated its willingness 

to use its role as supplier of oil and gas to exert political 

pressure on other countries, such as Georgia, Ukraine, 

and Belarus, among others; 
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•HRES 500 EH 

Whereas Europe currently relies on Russia for almost half of 

its imports of natural gas and is likely to increase its dependence on this source over the next decade; 

Whereas North Atlantic Treaty Organization officials have 

warned of the danger of Europe’s increasing dependence 

on Russian energy and of the prospect of alternative suppliers, such as Algeria, cooperating with Russia; 

Whereas at the GECF meeting in Doha on April 9, 2007, of 

senior officials from Iran, Russia, Venezuela, Bolivia, Algeria, Qatar, and other countries, an agreement was 

reached to establish a committee chaired by the Russian 

Government to study proposals for greater coordination 

of policies, including pricing, that participants stated 

would be necessary for the creation of a cartel; and 

Whereas the creation of an international cartel for natural 

gas similar to that of the Organization of Petroleum Exporting Countries (OPEC) would pose a major threat to 

the price and supply of energy, to the economy of the 

Unites States and of the world, and to their security: 

Now, therefore, be it 

Resolved, That it is the sense of the House of Representatives that— 

(1) the United States should make clear to the governments of major natural gas exporting countries that 

it regards efforts to establish a cartel or other mechanism to manipulate the supply of natural gas to the 

world market for the purpose of setting an arbitrary and 

nonmarket price, or as an instrument of political pres-
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•HRES 500 EH 

sure, to be prejudicial to the security of the United 

States and of the world as a whole; 

(2) the United States should develop a joint strategy with its allies and all countries that are importers 

of natural gas, as well as with cooperative exporting 

countries, to prevent the establishment of a cartel or 

other mechanism of this type, including by diversifying 

sources and alternative means of access by exporters and 

importers to international markets, such as by pipeline; 

and 

(3) in order to mitigate potential economic and 

other threats to our security, the United States should 

work with our allies to reduce our dependence on natural 

gas and to increase and promote the utilization of clean 

energy sources. 

Attest: 

Clerk.