Grassley's legislation takes aim at members of the Organization of Petroleum Exporting Countries ? OPEC ? for their collective "stranglehold on the U.S. economy."
He said the Persian Gulf oil states "are tampering with the free market system by arbitrarily clamping down on production. Their hard-nosed oil production quotas show scant appreciation for the fact that U.S. soldiers put their lives on the line during the Persian Gulf War to protect these countries from Saddam Hussein."
The bill Grassley offered today would require the President to send a report to Congress within 30 days of enactment. The President would be required to detail:
the U.S. security relationship with each OPEC member and any other major oil exporting country; U.S. assistance programs and government-supported arms sales provided to those countries; his determination regarding the extent each country is engaged in oil price fixing and whether such price fixing is detrimental to the U.S. economy.
The bill would then require the President to reduce, terminate or suspend any assistance or arms sales to the country or countries determined to be fixing oil prices.
In addition, Grassley's proposal would require the President to submit a report to Congress 90 days after enactment describing the diplomatic efforts by the U.S. to convince all major net oil exporting countries that current price levels are unsustainable and will cause widespread economic harm in oil consuming and developing nations.
"Even if the production quotas put in place last year are lifted, low reserves may continue to plunder American consumers and farmers during the busy summer vacation and planting seasons," Grassley said. "The Clinton administration was caught off-guard this year without much of an energy policy. Now, the President needs to exercise his authority to help solve the problem, which is going to get worse before it gets better." Some estimates say gasoline prices could get as high as $2 a gallon by May. In Iowa, the average price of unleaded, self-serve gasoline is higher than $1.35 per gallon. That's 47 cents higher than a year ago.
During the past month, Sen. Grassley has called for prompt action in response to the highest gas prices in nearly a decade. He has asked the President to tap the Strategic Petroleum Reserve, urged ambassadors from OPEC member nations to reconsider production quotas, reversed his support for Saudi Arabia's entry to the World Trade Organization, and demanded that the President to use his authority to dramatically expand the use of renewable energy like domestically-produced ethanol.
"We need to accelerate efforts to promote and use alternative sources of energy. Homegrown sources will lessen our dangerous and expenses dependence on finite, foreign petroleum products and protect the environment," Grassley said. "Renewable energy is a win-win-win solution. It's good for the rural economy, the environment and our energy independence."
As a leading advocate for renewable fuels, Grassley has worked tirelessly to expand the viability of clean-burning ethanol, soy diesel, wind energy and biomass.
OPEC members supply 77 percent of the world's total proven crude oil reserves. Algeria, Indonesia, Iran, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezuela, and Iraq today comprise the organization that was founded in 1960.
Last week, Rep. Benjamin Gilman introduced a companion to Grassley's bill in the U.S. House of Representatives.