I suggest price supports maybe $40 per barrel or so. It always our producers a set price at which they can make money and keeps OPEC from running most of our producers out of business. Any extra oil can go into strategic reserves thus providing a safety net for national security.
As with other price supports we have often found that the floor (price support) becomes the ceiling. Where as with interest rates on credit cards the interest rate ceiling of 18% compounded to 23% or so has become the floor for many card holders.
“I suggest price supports maybe $40 per barrel...”
Are you talking about federally imposed price supports for an industry as in the same way Jimmy Cartet imposed price supports in 1978?