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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
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 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 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 Depart-
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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 countries
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 percent of their operating budgets for the pur-
chase of diesel oil.
(7) Many elderly and retired Americans on
fixed incomes throughout the Northeast region of
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the United States cannot afford to pay the pre-
vailing 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 eco-
nomic and security relationship with the United
States which is a fundamental underpinning of glob-
al 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 de-
terminant in the overall political, economic, and security
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relationship between the United States and these coun-
tries.
(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 dismantle-
ment of international oil price fixing arrangements.
SEC. 4. REPORT TO CONGRESS.
Not later than 30 days after the date of the enact-
ment of this Act, the President shall transmit to the Con-
gress 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, 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).
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(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 de-
termination, 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 fix-
ing 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
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(2) take the necessary steps to begin negotia-
tions to achieve multilateral action to reduce, sus-
pend, or terminate bilateral assistance and arms ex-
ports 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 fix-
ing 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 de-
scribing any diplomatic efforts undertaken in accordance
with subsection (a) and the results achieved by those ef-
forts.
SEC. 7. DEFINITIONS.
In this Act:
(1) OIL PRICE FIXING.—The term ‘‘oil price
fixing’’ means participation in any agreement, ar-
rangement, 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.
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(2) OPEC.—The term ‘‘OPEC’’ means the Or-
ganization of Petroleum Exporting Countries.
Passed the House of Representatives March 22,
2000.
Attest:
JEFF TRANDAHL,
Clerk.