Grassley Comments on OPEC Projections


The U.S. Energy Information Administration states in its March 2000 report that OPEC oil export revenues for 2000 are projected to be $211.5 billion, or 59 higher than in 1999, which itself had seen a 34 percent increase from 1998 revenues. (See www.eia.doe.gov/emeu/cabs/opecrev.) Here is a comment from Sen. Grassley regarding those projections.

"The United States cannot afford to let an oil cartel force distorted prices down our throats. An estimated 59 percent increase in oil export revenues for OPEC members is obscene, and the worst part is that our own government let OPEC get its stranglehold on U.S. consumers and our economy.

"Domestic oil production is down 17 percent since 1992, while consumption has risen 14 percent. We already import 56 percent of our oil and the Energy Department says it will grow by 65 percent by 2020. As unbelievable as it seems, Saddam Hussein's Iraq is now our fastest growing source for oil. And now the U.S. is going to let Iraq import parts to increase their oil production after years of sanctions.

"The administration's energy policies are as bungled as possible: they strengthen the tin-horn dictator, Saddam Hussein, after putting U.S. soldiers' lives on the line during the Persian Gulf War. They continue to send foreign aid and allow arms sales to other OPEC members even though they've manipulated oil production to line their own pockets at the expense of U.S. consumers. This comes after we spent billions of U.S. tax dollars protecting them from Saddam Hussein."