Your idea was tried in the Soviet Union. China tried it and abandoned it. The only people who still believe in it are North Korea and Cuba. The actual cost to get a barrel out of the ground varies by company. A few years ago it cost Exxon $4, it cost Amerada Hess $14. Production cost, however, is independent of sale value....because if YOU own the oil, you sell it for whatever the market will bear. I then have a right to "pre-purchase that oil" from you, and sell that contract when the price has climbed sufficiently for me to make a profit. It's called free enterprise...