In 1973, OPEC boosted prices and the newly created Department of Energy, led by William Simon, imposed taxes on so those “bad” oil companies couldn’t “take advantage” of the higher crude prices created by OPEC to reap “windfall profits”.
Contrary to expectations, these windfall taxes forced US companies to reduce output and underinvest in drilling, etc. for many years!
In retrospect, it would have been smarter to let these energy companies enjoy these windfall profits to allow them to reinvest back to boost the output and lower the price of oil.
BTW has anyone mentioned windfall profits of Amazon or Apple from the Covid-related Work-from-Home overspending on outfitting home offices to work and study?