IB
Union Calendar No. 293
106TH CONGRESS
2D SESSION
H. R. 3822
[Report No. 106–528]
To reduce, suspend, or terminate any assistance under the Foreign Assistance
Act of 1961 and the Arms Export Control Act to each country deter-
mined by the President to be engaged in oil price fixing to the detriment
of the United States economy, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 2, 2000
Mr. GILMAN introduced the following bill; which was referred to the
Committee on International Relations
MARCH 17, 2000
Additional sponsors: Mr. MCHUGH, Mr. UPTON, Mr. GREEN of Wisconsin,
Mr. SHAYS, Mr. SWEENEY, Mr. MICA, Mr. RYUN of Kansas, Mr. BILI-
RAKIS, Mr. GOODE, Mr. CHABOT, Mr. CAMPBELL, Mr. SMITH of New
Jersey, Mr. ROTHMAN, Mr. LOBIONDO, Ms. ROS-LEHTINEN, Mr.
TANCREDO, Mr. GOODLING, Mr. REYNOLDS, Mr. SALMON, Mr. BOEH-
LERT, Mr. GILLMOR, Mr. BALLENGER, Mr. LANTOS, Mr. SCARBOROUGH,
Mr. LIPINSKI, Mr. DEAL of Georgia, Mr. THUNE, Mr. BACHUS, Mr.
EVERETT, Mr. BURTON of Indiana, Mr. HAYWORTH, Mr. HUNTER, Mr.
ABERCROMBIE, Mrs. ROUKEMA, Mr. JENKINS, Mr. RILEY, Ms. HOOLEY
of Oregon, Mr. GALLEGLY, Mr. LUCAS of Kentucky, Mr. WALDEN of Or-
egon, Mr. MCCOLLUM, Mr. MALONEY of Connecticut, Mr. SHOWS, Mr.
OSE, Mr. GEKAS, Mr. CASTLE, Mrs. CAPPS, Mr. DUNCAN, Mr. MCINNIS,
Mr. DOOLITTLE, Mr. ADERHOLT, and Mr. SCHAFFER
MARCH 17, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on March 2, 2000]
A BILL
To reduce, suspend, or terminate any assistance under the
Foreign Assistance Act of 1961 and the Arms Export
Control Act to each country determined by the President
to be engaged in oil price fixing to the detriment of
the United States economy, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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 na-
tions 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 rep-
resenting approximately six percent of the global sup-
ply.
(2) OPEC, in its capacity as an oil cartel, has
been a critical factor in driving prices from approxi-
mately $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 re-
ducing 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 Depart-
ment of Energy noted that artificial supply con-
straints placed on the market are ultimately self-de-
feating in so far as they increase volatility in the
market, lead to boom and bust cycles, and promote
global instability, particularly in developing coun-
tries whose economies are extremely vulnerable to
sharp price increases.
(5) These price increases have caused infla-
tionary shocks to the United States economy and
could threaten the global economic recovery now un-
derway 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 per-
cent of their operating budgets for the purchase of die-
sel 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 secu-
rity 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 COUN-
TRIES.—It shall be the policy of the United States to con-
sider 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 COUN-
TRIES.—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 re-
port that contains the following:
(1) A description of the overall economic and se-
curity relationship between the United States and
each country that is a major net oil exporter, includ-
ing 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 assist-
ance programs under the Foreign Assistance Act of
1961 and the Arms Export Control Act, including li-
censes 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 in-
clude 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 Con-
gress 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 ar-
rangements 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 de-
scribing any diplomatic efforts undertaken in accordance
with subsection (a) and the results achieved by those efforts.
(c) AUTHORITY TO REDUCE, SUSPEND, OR TERMI-
NATE ASSISTANCE.—Pursuant to the current authorities of
the President and in furtherance of multilateral efforts, or
bilateral efforts when the United States is the sole exporter
of a particular defense article or defense service, the Presi-
dent is authorized, at any time after transmitting the re-
port pursuant to section 4, to reduce, suspend, or terminate
assistance under the Foreign Assistance Act of 1961 and
the Arms Export Control Act, including the license for ex-
port of defense articles or defense services under section 38
of such Act, to 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.
SEC. 7. DEFINITIONS.
In this Act:
(1) OIL PRICE FIXING.—The term ‘‘oil price fix-
ing’’ means participation in any agreement, arrange-
ment, 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 Orga-
nization of Petroleum Exporting Countries.
Union Calendar No. 293
106TH CONGRESS
2D SESSION
H. R. 3822
[Report No. 106–528]
A BILL
To reduce, suspend, or terminate any assistance
under the Foreign Assistance Act of 1961 and
the Arms Export Control Act to each country de-
termined by the President to be engaged in oil
price fixing to the detriment of the United States
economy, and for other purposes.
MARCH 17, 2000
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed