House votes to allow lawsuits against OPEC

WASHINGTON – Congress’ latest answer to rising gasoline prices? Sue OPEC.

Defying a White House veto threat, the House on Tuesday overwhelmingly approved legislation that would allow the Justice Department to pursue legal action against the Organization of the Petroleum Exporting Countries for conspiring to restrict supplies or drive up prices.

It was the second time in a week that a majority of Republicans joined Democrats to support an energy measure over Bush’s objections and came as the average price for a gallon of self-serve regular set a record Tuesday – $3.80 nationally, according to AAA.

The Bush administration warned that the measure could invite retaliatory action by the oil cartel, which supplies about 6 million barrels of crude to the United States every day.

But with lawmakers preparing to head home for Memorial Day, the traditional start of the summer driving season, they are scrambling to show they are doing something to respond to high fuel costs – although they acknowledge limits to what they can do to provide immediate relief.

Last week Congress overwhelmingly voted to limit oil shipments to the government’s emergency stockpile in hopes of putting more gasoline on the market. This week lawmakers are bringing oil industry executives back to Capitol Hill for hearings.

The House OPEC measure was approved 324-84. A similar measure, dubbed NOPEC for the No Oil Producing and Exporting Cartels Act, passed the Senate last year by a 70-23 vote but was set aside in response to a White House veto threat.

The House measure would create a Justice Department task force to investigate price gouging and manipulation in oil markets, and require a study of the effect of oil industry mergers on fuel prices.

The bill’s supporters said it would strip OPEC of the ability to use the foreign “sovereign immunity” shield to avoid the reach of U.S. antitrust laws in American courts.

Rep. Robert C. Scott, D-Va., said Bush’s failure to persuade Saudi Arabia to sharply increase its oil production during his visit to the Middle East last week underscored the need for the legislation.

“OPEC’s concerted manipulation of world oil marketplaces calls for more than begging for help,” Scott said during Monday’s debate. “It calls for full antitrust enforcement.”

Rep. Steve King, R-Iowa, scoffed at the measure, arguing in the House that it was “long on psychic compensation” but unlikely to bring down gas prices. He assailed Democrats for blocking efforts to increase domestic oil drilling, complaining that the bill “doesn’t outlaw the congressional cartel that has blocked our energy production in this country.”