Your second example makes no sense. Saudi subsidising their industry to establish new oil and gas wells is not going to happen for the following reasons: there

Your second example makes no sense. Saudi subsidising their industry to establish new oil and gas wells is not going to happen for the following reasons: there is no lower cost extraction, otherwise it would have already been tapped. Look at the pain us shale extraction is causing saudi and opec. Supply in this context (50 per barrel tax) cannot be provided without increasing prices, which will reduce consumption on a net basis. There is no two ways around it. I drive less when gas is 3.90 a gallon. So will everyone else.