Wednesday, May 21, 2008

US House Votes to Sue OPEC for Price Fixing.

House votes to allow suit against OPEC - Los Angeles Times

Will gas be rationed?

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 the Bush administration's objection and came as the average price for a gallon of self-serve regular set more records Tuesday -$3.80 nationally and $3.976 in California, according to AAA.

The White House 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.

If the United States sues OPEC, who will we be suing? A bunch of middle east countries that export oil? NO. There will be two South American countries, Ecuador and Venezuela, a founder member. Four countries from Africa, and Indonesia from Asia.Out of the thirteen members only six are from the middle east and one of them is Iran.

I would like to see us sue President Hugo Chavez of Venezuela. I sure he won't retaliate against the United States. I also would like to see us sue Iran's President Mahmoud Ahmadinejad. He is urging OPEC members to from a joint bank and stop pricing oil trades in US dollars. Mahmoud Ahmadinejad says oil valued at $115 per barrel is priced too low. I am sure if we sue him, he won't retaliate against the United States. And the other eleven countries will love us as we sue them and bow at our feet.

I don't know why Congress is so upset. Just last August, 10 months ago, reported that despite oil's record high last week, forget about crude going to $100 a barrel. The government run Energy Information Administration has a $50 target price for crude by 2015. Here we go, most analysts agree with EIA assessment. "This is an inherently cyclical business," said Edward Morse, chief energy economist at Lehman Brothers, who said he could see oil prices in the $40 to $50 range by 2010. Thats only a year and a half from now. Do you believe them?

Now the United States is going to sue OPEC. Are we going to have another oil crisis of 1973? The 1973 oil crisis began on October 17, 1973 when the members of OPEC announced, as a result of the ongoing Yom Kippur War, that they would no longer ship oil to nations that had supported Israel in its conflict with Syria and Egypt (the United States and it's allies in Western Europe and Japan.) I guess we should have sued OPEC then, because Syria and Egypt launched a military attack on Israel.

This proves OPEC doesn't need to sell us oil and we are just going to make them mad and they will produce less and really fix the price. So maybe the day that our Congress sues OPEC that will be the day that the 2008 oil crisis will begin.

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