Kindly, allow me to say that Americans are most unthankful nation; they never spare a chance to influence OPEC decisions. To put Saudi Arabia, often termed defecto leader of the cartel, under further pressure, a House panel in the United States has passed a bill to open the OPEC oil production group and countries working with it to lawsuits for collusion in boosting petroleum prices. However it was uncertain whether the full chamber would consider the legislation or not.
In one of my previous blogs, “An agreement signed with United States in 1945 will continue to haunt House of Saud forever”, I had referred to an agreement signed in 1945 between President of United States, Franklin D. Roosevelt, and the Saudi King at the time, Abdulaziz, which defined the relationship between the two countries for the years to come.
The deal that was struck between the two men at that time was that the US would receive all of the oil supplies it needed for as long as Saudi Arabia had oil in place, in return for which the US would guarantee the security of the ruling House of Saud.
The deal was altered slightly since the rise of the US shale oil industry. The US also expects the House of Saud to not only supply the US with whatever oil it needs for as long as it can but also that it will also facilitate the US shale industry to continue to function and to grow.
The NOPEC bill, introduced by Representative Steve Chabot, a Republican, passed on a voice vote in the House Judiciary Committee. It would allow the US Justice Department to bring anti-trust lawsuits against oil-producing countries in the Organization of the Petroleum Exporting Countries (OPEC).
Similar bills to pressure OPEC when oil prices are on the rise have appeared in Congress without success for more than 20 years.
"It's high time that we do more to fight ... production controls that continue to keep the price of crude oil and gasoline arbitrarily high in the United States," Chabot told the committee before the vote.
Oil prices have risen about 33% this year and on Tuesday hit the highest level in a month, above US$68 a barrel for Brent international crude. But that was well below the level of more than US$100 a barrel in 2008 when a similar bill passed in the full House.
The rise came despite a deal OPEC+, a group consisting of OPEC members, Russia and their allies, struck this month to gradually ease oil output cuts from May, as economies recover from the global pandemic. The deal came after US Energy Secretary Jennifer Granholm called on top OPEC producer Saudi Arabia to keep energy affordable for consumers.
A similar bill to pressure OPEC was reintroduced in the Senate last month, by Republican Senator Chuck Grassley, a supporter of ethanol, a motor fuel additive made from corn, and Democrat Amy Klobuchar. To become law, a bill would have to pass both chambers in Congress and be signed by President Joe Biden.
