28 minutes ago[/size]
May 9, 2022
But the good news is that the major American oil companies are against this law because it contradicts their interests, and the adoption of the law requires the approval of the President of the Republic, Biden, and perhaps he will not agree. A few weeks……
Thursday, May 5, 2022.
Today, the US Senate Judiciary Committee approved a bill known as “No to Oil Production and Export Blocs” known as “NOPEC”, which would allow lawsuits to be filed in The United States is against the Organization of Petroleum Exporting Countries (OPEC) oil producers under antitrust laws for orchestrating supply cuts that raise global oil prices, which exposes members and partners to accountability.
The bill, which was approved by the committee after receiving 17 votes to four, needs to be passed in full by the Senate and House of Representatives, and then signed by President Joe Biden to become law.
If it becomes law, the US attorney general will be able to sue OPEC or its members, such as Saudi Arabia, in a federal court. It will also be able to sue other producers allied with "OPEC", such as Russia, who are working with the organization to reduce supplies within what is known as the "OPEC +" group.
A bill aims to protect US consumers and businesses from deliberate hikes in gasoline and heating oil prices, but some analysts warn that its implementation could have some unintended, dangerous repercussions.
The project is submitted by the two main parties and will introduce amendments to the American anti-monopoly law to abolish the sovereign immunity that protects “OPEC” and the national oil companies in its member states from lawsuits.
It was not clear how a federal court could enforce antitrust rulings on a foreign country. But several attempts to enact the "NOPEC" law over more than 20 years have alarmed Saudi Arabia, the de facto leader of OPEC, prompting it to exert strong pressure every time a copy of this law is presented.
The White House did not say whether Biden supported the bill, and it was not clear whether he had enough support in Congress to reach this stage.
One of the sector's concerns is that the NOPEC bill will eventually lead to more OPEC production than the market needs, which may lower prices to a degree that American energy companies will find it difficult to boost production. Saudi Arabia and other OPEC members have some of the cheapest and easiest oil reserves to extract.
Research group Clear View Energy Partners also said in a note that any additional oil pumping from OPEC producers, even at a time dominated by fears of a Russian supply shortage, "could freeze drilling activities in the United States, which could jeopardize domestic energy security as well as recovery of the local economy.