OPEC Secretary General Warns Congress That Suing Oil Cartel Would ‘Usurp’ US Oil and Gas Interests

OPEC Secretary General Mohammed Sanusi Barkindo warned Congress Tuesday to not move forward with legislation arming the U.S. with power to sue OPEC for price-fixing, arguing that if the bill became law, it would “usurp” the interests of the American oil and gas industry.

“The legislation as it stands would not serve the interests of the United States,” Barkindo told reporters at the CERAWeek by IHS Markit energy industry conference in Houston. “It would also usurp the interests of the oil and gas industry that has seen such a remarkable rebound.”

The bipartisan legislation, known as the No Oil Producing and Exporting Cartels or NOPEC Act, has been introduced in every Congress over the past 20 years but never signed into law.

The House Judiciary Committee passed a NOPEC bill last month that would open up the cartel to antitrust lawsuits, potentially leaving the oil cartel vulnerable to paying billions of dollars in repatriations.

A companion bill in the Senate has been referred to that chamber’s Judiciary Committee.

There is fresh momentum for the bill, however, given President Trump’s criticism of OPEC’s control over oil prices and its ongoing strategy to cut supply in order to keep prices from getting too low. Trump would be inclined to sign a NOPEC bill if it came to his desk, Axios reported Monday, although the administration has not taken an official position on the legislation.

Energy Secretary Rick Perry opposes the bill, recently saying it could cause long-term spikes in oil prices and thus higher gasoline prices.

Barkindo suggested the same Tuesday, appealing to free-market sensibilities in the U.S.

“We remain confident reason will prevail and strong voices being echoed across party lines will be taken into account,” Barkindo said. “The U.S. remains the home of free markets. It remains the home of this industry serving not only the domestic market but internationally. The leadership of U.S. won’t be enhanced globally by such legislation.”

Source: www.washingtonexaminer.com