I fully expect to see the first suit under this legislation laughed out of court by the judge who hears it -- and the nations sued to give the US the proverbial bird if it isn't. After all, the sovereignty of OPEC members would certainly trump the ability of an American judge to claim jurisdiction over the decisions of the oil ministers of foreign countries.

The House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue OPEC members for limiting oil supplies and working together to set crude prices, but the White House threatened to veto the measure.

The bill would subject OPEC oil producers, including Saudi Arabia, Iran and Venezuela, to the same antitrust laws that U.S. companies must follow.

The measure passed in a 324-84 vote, a big enough margin to override a presidential veto.

The legislation also creates a Justice Department task force to aggressively investigate gasoline price gouging and energy market manipulation.

"This bill guarantees that oil prices will reflect supply and demand economic rules, instead of wildly speculative and perhaps illegal activities," said Democratic Rep. Steve Kagen of Wisconsin, who sponsored the legislation.

The lawmaker said Americans "are at the mercy" of OPEC for how much they pay for gasoline, which this week hit a record average of $3.79 a gallon.

Frankly, a judgment requiring various OPEC members to increase production is likely to have as much impact upon the policies of those nations as judgments from their courts requiring America to increase its foreign aid budget or reduce defense spending. In other words, it is worthless, even as the Pelosi Petroleum Premium goes higher by the day -- $80 a barrel since Nancy Pelosi assumed the Speaker's chair.

Similarly, the "anti-gouging" measures will be ineffective as well -- after all, we found after the 2005 gas price spike that the Democrats insisted needed investigating was based upon supply and production factors, NOT illegal activity. I expect that any such investigation now will have the same result -- unless the deck is stacked in an effort to produce a sufficient number of scalps, regardless of actual guilt.

But what is also notable is what this bill does not contain -- any measures to actually secure energy independence or boost American production. We are the world's third-largest oil producer -- and we are sitting on untapped reserves in the ANWR and off-shore near California, Florida, and Virginia. Not only were no incentives offered to drill in those areas, but they remain off-limits by federal law, even as the Pelosi Petroleum Premium increases. No end to the ethanol mandate or boutique fuel requirements, either, which means that gas prices will continue to move higher due to Congressional and regulatory mandates. Nor are there other measures designed to wean us off of foreign oil -- or to move to alternative fuel sources.

So what am I saying? This bill is a farce, and th promised relief from high gas prices is a sham. I guess the Democrats think Americans are fools if they believe that such an absurd piece of legislation will placate us.

Posted by: Greg at 09:02 PM | No Comments | Add Comment
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