It shouldn't be much of a surprise that the Democrats like Mark Udall are in love with Oil Windfall Profits taxes. They will do almost anything to minimize the production of oil and drive up the price of gasoline.
Just for the sake of argument, assume that you were lucky enough to own an oil well.
Before you start spending those big bucks, lets assume that your oil well only produces one tenth of a barrel a day, but it does produce that much. That is about 35 barrels a year. At $120 a barrel, you will make $4,200 a year. It isn't a kings ransom, but it will buy you and your spouse a nice dinner once a week.
Well, maybe it won't. Small scale oil production has large scale costs. Let's assume that this well costs $3,500 a year to run. We can use any figures we want to because the principles are the same. This well won't have come into production until the price of oil exceeds $100/barrel.
Democrats like Mark Udall are quite content to keep marginal wells out of production because it helps them increase the cost of gasoline. How can they best do that? Simple, they can impose a $20 a barrel windfall profits tax. It sounds like they are doing a good thing, but the impact is that this well will go back out of production and the price of gasoline will incrementally increase.