England, Ireland and Wales recently rejected a request to trial a number of the additional ELVs currently being used in the southern hemisphere, with O'Neil believing that rejection could be damaging to the world game.
''I'm urging England, Wales and Ireland to find competitions, trial the sanctions and then we've got something to talk about," said O'Neill.
''Until you've actually had a universal trial of all the ELVs, you can't actually make an informed judgment.
''We're simply saying to England, Wales and Ireland - and to the IRB - give it a fair go. To sit back and say 'no, we're not trialling them' is not in the best interests of the world game.
''You'd hate to think we'd end up in a situation of two games (but) it could happen."
O'Neill believes that both hemispheres must work together if rugby is to avoid the second substantial schism in its history and the first since the creation of rugby league in the late 19th century.
''It's not about one part of the world getting an advantage over a different part of the world - it's what's in the best interests of rugby. We're putting our hands across the water and saying let's get to a point where we can have proper discussion.
''If we want rugby to continue to grow as a true international game second only to football, we've got to move away from this southern hemisphere-northern hemisphere battle lines.
''The last two weekends we've seen the Springboks play the All Blacks in two wonderful Test matches and we've seen Australia versus France and Australia versus Ireland and the All Blacks versus England under the old laws. You don't have to be Einstein to figure out which game is a far more impressive spectacle.
''I think the IRB is on side (but) we're seeing a tremendous test of the IRB's leadership to stare down England, Wales and Ireland and to force them to find competitions in which to trial. They're saying their marketplace has never seen them but doesn't like them.
''We're getting into this silly, combative conversation where you've got a number of home unions saying our game is in great shape, why should we help you just because your game is in trouble.
''Our game is not in trouble. Ultimately it will catch up with the northern hemisphere then one day the fans will say this is boring - penalty shootouts are not what we've come to see.''