Nopec Sherman act legislation

How come there is no discussion here at OiPrices about the NOPEC legislation presented on May 24th that may be enacted by a bipartisan bill?

https://judiciary.house.gov/press-release/bipartisan-lawmakers-applaud-the-introduction-of-nopec-legislation/

PRESS RELEASE | MAY 24, 2018
Bipartisan Lawmakers Applaud the Introduction of NOPEC Legislation
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Washington, D.C. – House Judiciary Committee Chairman Bob Goodlatte (R-Va.) joined a bipartisan group of lawmakers in introducing the No Oil Producing and Exporting Cartels Act (H.R. 5904). This legislation would make the Organization of the Petroleum Exporting Countries (OPEC) subject to antitrust law by removing a state immunity shield created by judicial precedent.

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3 hours ago, Vogel DK said:

How come there is no discussion here at OiPrices about the NOPEC legislation presented on May 24th that may be enacted by a bipartisan bill?

https://judiciary.house.gov/press-release/bipartisan-lawmakers-applaud-the-introduction-of-nopec-legislation/

PRESS RELEASE | MAY 24, 2018
Bipartisan Lawmakers Applaud the Introduction of NOPEC Legislation
Email
Washington, D.C. – House Judiciary Committee Chairman Bob Goodlatte (R-Va.) joined a bipartisan group of lawmakers in introducing the No Oil Producing and Exporting Cartels Act (H.R. 5904). This legislation would make the Organization of the Petroleum Exporting Countries (OPEC) subject to antitrust law by removing a state immunity shield created by judicial precedent.

Great. Now I have to stop using NOPEC to refer to Russia and all the other Non-OPEC signatories to the production cut deal. Phooey. These people really should check with me first. 

First I've heard of this legislation, thanks for sharing!

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3 hours ago, Vogel DK said:

How come there is no discussion here at OiPrices about the NOPEC legislation presented on May 24th that may be enacted by a bipartisan bill?

https://judiciary.house.gov/press-release/bipartisan-lawmakers-applaud-the-introduction-of-nopec-legislation/

From the link:

Chairman Goodlatte: “The purpose of antitrust law is to protect consumers from behemoths in any industry that threaten competition and control prices. The fact that OPEC has not been held accountable for its cartel behavior makes a mockery of U.S. antitrust law, threatens the American economy, and has the potential to harm our national security. I am pleased to join this bipartisan group of lawmakers to put an end to OPEC’s anticompetitive behavior. The enactment of NOPEC is long overdue, and I urge my colleagues on both sides of the aisle to support its passage.”

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Guess what, the USA doesn't really get to dictate its own laws, rules and regulations onto other sovereign countries. Sometimes it does anyway, but it's not a good idea.

How would you feel if Saudi Arabia reached across the pond and tried to impose Sharia law on the USA, because the unregulated non-Sharia actions of the USA have "the potential to harm Saudi Arabia's national security."

See how stupid that is?

It is a short road to trouble for one country to try to shove its deeply engrained values and cultural down the throats of other countries who have very much different values and cultures.

Just because the USA has antitrust laws and values, doesn't mean the rest of the world has to abide by USA antitrust laws and values.

This bill is a pretty bad idea, and if passed, will likely have negative repercussions internationally.

Don't believe the USA mainstream media hype - the USA is nowhere near being "energy independent" and won't be anywhere near "energy independent" in the near future.

How the heck can a buyer of a fungible commodity (oil) dictate the terms of purchase to the seller?  The seller can simply walk away.

Yep, I totally expect others to not agree with my off the cuff rant.  No issue.  I don't mind. 

I've done a fair amount of international travel.  Whatever country I visit, I have to follow the local norms, laws and customs.  What I certainly don't want to act like is an arrogant, uneducated tourist, who wants things done the same way as in their homeland, and complains about the local norms and customs.

The USA trying to dictate antitrust laws onto countries that have no problem with cartels, has the potential to blow up badly in the face of the posturing politicians in the USA, who are bloviating and acting like arrogant, uneducated tourists.

/ end rant.

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P.S. ...

 

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Cartels and price fixing among groups of companies in a sovereign country is illegal most places. The problem is that most of the OPEC countries plus Russia, although sovereign, are also running and owning state controlled oil companies. 

This kind of price fixing among groups of nations is against the spirit of international trade agreements. It seems that the EU-countries are the ones who are most supportive of viewing OPEC as a "legitimate" organisation.

That the EU does not fight a criminal organisation such as OPEC very aggressively is a mystery.

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We were actually lectured about this in Saudi Aramco. National oil companies are essentially immune, though they see some sensitivity if they want to develope a diversified economy and be a WTO country. The proposed IPO of Aramco throws a wrench in things. If the public IPO can’t determine it’s production levels, then how does that effect the value. Fun stuff 

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I guess the US could go down the path of implementing 'sharia oil law' on OPEC if the big boys were state-run, like in the GCC or Russia. But that leads to another question: The way things are being run right now, that's exactly where it looks to be going. Big government, state-run, or at least state-run by blackmail.  

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On ‎5‎/‎30‎/‎2018 at 8:30 PM, Tom Kirkman said:

The USA trying to dictate antitrust laws onto countries that have no problem with cartels, has the potential to blow up badly in the face of the posturing politicians in the USA, who are bloviating and acting like arrogant, uneducated tourists

Well said. All this kind of dumb bluster from America is based on the false narrative of shale oil abundance and the continued ability for the shale oil industry to borrow cheap CAPEX to drill otherwise unprofitable to marginally profitable shale oil wells. Call the shale oil industry's loans, or take away cheap stimulus money to fund constant drilling and the 5MM BOPD of LTO America thinks it can rule the world with goes  down to 2.3MMBOPD in less than 2 years and we're back to begging OPEC for help. Pissing the rest of the worlds oil producing countries off is going to come back and haunt us someday. Watch.

 

 

 

 

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