For some reason, some people seem to still harbor the delusion that, when too much government creates a major crisis, more government intrusion will somehow fix it. Yes, people are that stupid. Especially politicians. They could learn from reviewing five minutes of history—if only they would read my friend Mark Milliorn's blog this week …
"The Strategic Oil Reserve"
President Nixon also imposed wage and price controls for the second time during his presidency. (Why not?—they had already failed spectacularly the first time.) Oil producers were allowed to raise prices on production from new wells, but not on that from existing wells, despite rising inflation that made operating the old wells increasingly costly. Naturally, the oil producers simply shut down the old wells completely, worsening the oil shortage. Since increased regulations and price restrictions discouraged new production, there was also little incentive for new exploration or energy innovation.