Dr. C.

How $30/Barrel Oil Could Save the World

If you put a government enforced cap on oil at $30 per barrel many current supply sources with a marginal cost of production above $30 will stop production. You will also see a drastic cutback in the development of new sources such as the deepwater Brazilian fields currently in development. The result will be supply shortages, long lines at the gas stations, and eventual rationing.

If you want to see what the results of a artificially constrained oil supply look like, research the oil shocks of the 1970’s.