WASHINGTON, April 2 U.S. congressional opposition is building against a proposed gas cartel that will bring together major suppliers, including Russia, Iran and Venezuela.
"The creation of this cartel would pose a major and long-term threat to the world's energy supply," Rep. Ileana Ros-Lehtinen, ranking Republican on the House Foreign Affairs Committee, wrote in a letter to Secretary of State Condoleezza Rice on Tuesday. "We must vigorously oppose the establishment of this global extortion racket." Last month Russian news reports said major gas producers agreed to set up a cartel for gas exports -- modeled on the Organization of Petroleum Exporting Countries -- for gas exports. A deal is expected April 9 in Qatar.
During a visit to the Middle East in February, Russian President Vladimir Putin said even if a gas cartel was not formed, producers should coordinate their policies.
The West fears that an OPEC-like cartel would lead to high gas prices.
Although the United States is mostly self-sufficient in natural gas, imports are expected to increase over the next few years. Europe and Asia, which depend on natural-gas imports, are also likely to be affected by any gas cartel.
Copyright 2007 by UPI
