Johnny Rocket

How $30/Barrel Oil Could Save the World

These ideas neglect the fundamentals of basic economics. Most oil costs more than $30 / barrel to produce, especially non-conventional oil. There is no incentive to produce oil under this system. Governments could build in large tax incentives for oil production, to make $30 / barrel profitable.....but companies don't like depending on fickle government policy.

It's all about incentives to produce. Price controls haven't worked in the past and I'm not sure they would work in this case.

Where I can see your argument going is to nationalize oil companies, which has seen limited success (Stat-oil in Norway seems to be working). Although I don't agree with this either, it makes more sense than putting a ceiling on oil prices.