I
106TH CONGRESS
2D SESSION
H. R. 4732
To require certain actions with respect to the Organization of Petroleum
Exporting Countries (OPEC) or any other cartel engaged in oil price
fixing, production cutbacks, or other market-distorting practices.
IN THE HOUSE OF REPRESENTATIVES
JUNE 23, 2000
Mr. GILMAN introduced the following bill; which was referred to the Com-
mittee on International Relations, and in addition to the Committee on
Banking and Financial Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To require certain actions with respect to the Organization
of Petroleum Exporting Countries (OPEC) or any other
cartel engaged in oil price fixing, production cutbacks,
or other market-distorting practices.
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 ‘‘International Energy
Fair Pricing Act of 2000’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The Organization of Petroleum Exporting
Countries (OPEC), in its capacity as an oil cartel,
has been a critical factor in withholding production
from the market and driving up oil prices approxi-
mately 300 percent from January 1999 to June
2000.
(2) Nationwide, gasoline prices have increased
approximately 60 cents a gallon since the beginning
of 1999 with crude oil prices increasing 48 cents
over this same time period.
(3) The Department of Energy’s weekly survey
showed the average cost of gasoline in the United
States increased 5 cents a gallon to $1.68 from the
second to the third week of June 2000, a record
high for a fourth week in a row.
(4) Price declines in the cost of oil in April
2000, following the March 2000 OPEC meetings,
have been reversed because OPEC output did not
meet global demand and supply conditions. When
OPEC members met in March 2000, quotas were
not set high enough for refiners around the world to
rebuild crude stocks depleted by winter heating de-
mand.
(5) Crude oil stocks in the United States are
only 31,000,000 barrels above the lowest operational
inventories ever observed in recent times (the equiva-
lent of 2 days of refinery operations) and
20,000,000 barrels under the normal range for the
month of June.
(6) The United States needs to make a system-
atic review of its bilateral and multilateral policies
and those of all international organizations and
international financial institutions to ensure that
these policies are not directly or indirectly sup-
porting the oil price fixing activities, policies, and
programs of OPEC.
SEC. 3. POLICY OF THE UNITED STATES.
(a) POLICY WITH RESPECT TO INTERNATIONAL OR-
GANIZATIONS.—It shall be the policy of the United States
that the extent to which each international organization
supports, or otherwise recognizes, OPEC will be an impor-
tant determinant in the relationship between the United
States and this organization.
(b) POLICY WITH RESPECT TO INTERNATIONAL FI-
NANCIAL INSTITUTIONS.—It shall be the policy of the
United States that the extent to which each international
financial institution supports or otherwise recognizes
OPEC, will be an important determinant in the relation-
ship between the United States and the institution.
(c) POLICY WITH RESPECT TO THE ENERGY AND
DEVELOPMENT ACTIVITIES.—The United States should
carefully review all the energy development projects and
programs administered by the United States Agency for
International Development in developing countries to en-
sure that these projects and programs do not indirectly
or inadvertently support the activities of OPEC.
SEC. 4. POLICY TOWARD THE INTERNATIONAL FINANCIAL
INSTITUTIONS.
(a) REPORT TO THE CONGRESS ON ACTIVITIES OF
THE
INTERNATIONAL
FINANCIAL
INSTITUTIONS.—No
later than 90 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 any loan, guarantee, or
technical assistance provided or to be provided by
any international financial institution that does or
would directly or indirectly support any activity or
program of OPEC or any other cartel, or any mem-
ber of OPEC or any other cartel, engaging in pro-
duction cutbacks or other market-distorting prac-
tices.
(2) A description of the energy sector loans of,
technical assistance provided by, and policies of each
international financial institution, and an analysis of
the extent to which the loans, assistance, or policies
promote the complete dismantlement of international
oil price fixing arrangements and the development
of a market-based system for the exploration, pro-
duction, and marketing of petroleum resources.
(b) UNITED STATES POSITION IN INTERNATIONAL
FINANCIAL INSTITUTIONS.—The United States Executive
Directors at each international financial institution shall
use the voice, vote, and influence of the United States to
oppose the provision of any loan, guarantee, or technical
assistance by the institution that would directly or indi-
rectly support the activities and programs of OPEC or any
other cartel, or any member of OPEC or any other cartel,
engaging in production cutbacks or other market-dis-
torting practices.
SEC. 5. REPORT RELATING TO THE ORGANIZATION FOR
ECONOMIC COOPERATION AND DEVELOP-
MENT (OECD).
Not later than 90 days after the date of the enact-
ment of this Act, the President shall prepare and transmit
to Congress a report that—
(1) describes the efforts of the Organization for
Economic Cooperation and Development (OECD) to
review the market-distorting practices of inter-
national cartels, including OPEC, and recommends
specific actions that the member countries of the
OECD can undertake to combat such practices; and
(2) describes actions to be taken by the United
States to ensure that the OECD expands upon its
activities and programs regarding the operation of
international cartels.
SEC. 6. AMENDMENT TO THE FOREIGN ASSISTANCE ACT OF
1961.
Section 106 of the Foreign Assistance Act of 1961
(22 U.S.C. 2151d) is amended by adding at the end the
following:
‘‘(g)(1) In carrying out the activities under this chap-
ter, the President shall—
‘‘(A) ensure that amounts made available to
carry out this chapter are not used to support, di-
rectly or indirectly, the programs, activities, and
policies of the Organization of Petroleum Exporting
Countries (OPEC), or any other cartel, or any mem-
ber of OPEC or any other cartel, if OPEC or such
other cartel engages in oil price fixing; and
‘‘(B) certify annually to the appropriate con-
gressional committees that the requirement of sub-
paragraph (A) has been met for the prior fiscal year.
‘‘(2) In this subsection—
‘‘(A) the term ‘appropriate congressional com-
mittees’ means—
‘‘(i) the Committee on International Rela-
tions and the Committee on Banking and Fi-
nancial Services of the House of Representa-
tives; and
‘‘(ii) the Committee on Foreign Relations
and the Committee on Banking, Housing, and
Urban Affairs of the Senate; and
‘‘(B) the term ‘oil price fixing’ has the meaning
given such term in section 7(2) of the International
Energy Fair Pricing Act of 2000.’’.
SEC. 7. DEFINITIONS.
In this Act:
(1) 
INTERNATIONAL
FINANCIAL
INSTITU-
TION.—The term ‘‘international financial institu-
tion’’ has the meaning given in section 1701(c)(2) of
the International Financial Institutions Act.
(2) OIL PRICE FIXING.—The term ‘‘oil price
fixing’’ means participation in any agreement, ar-
rangement, or understanding with other counties
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.
(3) OPEC.—The term ‘‘OPEC’’ means the Or-
ganization of Petroleum Exporting Countries.
(4) PETROLEUM RESOURCES.—The term ‘‘pe-
troleum resources’’ includes petroleum and natural
gas resources.
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