I don’t think you get it.
This isn’t a free market issue, and it has a LOT to do with National Security. It also has a lot to do with protecting the average American from a predatory foreign monopoly.
The Saudis are waging economic warfare against us directed by the power of their state. It is an orchestrated attempt to make Americans dependent on their oil at $100/barrel.
Purchasing our own production at what are now above market rates would defeat the attack, protecting Americans from having their own industry destroyed and thus having to pay confiscatory prices after that.
Finally, its not paying an industry not to produce. Its paying them to produce a product that we know 100% that we need and that does not spoil.
The buy price would be ~$40/barrel, which is minimal profit, and the government would resell at ~$60/barrel when the Saudis ran out of money.
I get it completely. I work in the oil/gas/petrochem industry. I don’t agree with you.
On the National Security side, we maintain the Strategic Petroleum Reserve.
On the industry side, our refining industry is as important as the oil production industry. Do not subsidize one to penalize the other. The government should never be selecting winners and losers in private industry.
The Saudi’s cannot maintain their current government at current oil prices for many years. But long before they crash, Nigeria, Venezuela, Angola, Algeria and others are going to have huge problems. Oil is not going to remain at this price without drastic changes.