Windfall profits taxation at the onset is a sham. Back in the late '70's and early '80's big oil was diversifying and buying many things and companies that weren't even remotely oil releated. Much better to take the hit on the balance sheet than waste it on government taxation.
That philosophy pretty much runs true in business, industry, and even n personal finance.
It was worse than simply oil companies investing in non-oil related ventures.
I was an engineer during those times and I recall vividly "Old" oil vs "New" oil. The feds thought encouraging investments into areas were "New" production could be gained would be rewarded vs existing "Old" oil production.
I plotted production graphs of our major producing fields and any oil below an extrapolated decline line were considered "Old" oil and that oil could only be sold at very low $/b prices whereas "New" oil above the line was rewarded with market prices which were significantly higher.
It was a nightmare to administer as one can imagine. And it caused companies, in order to increase the per b profitability of its operations, to cease investments into existing fields in favor of looking for newer fields, causing an accelerated decline in the bulk of the production of those companies due to lack of investment.
It was disastrous and had the reverse effect that the feds wished it would by decreasing overall oil production, not increasing it.
The feds also did this for natural gas in a different way by a ceiling on gas prices that could be charged for gas fields dedicated to the interstate gas market, Intrastate gas, or gas produced and sold wholly in Texas, was unaffected and could realize market price. I recall sales prices of only 57 cents for interstate vs $1.80 intrastate.
Gas production from interstate fields suffered greatly as their declines accelerated as investments were directed to make more money in the intrastate markets. In Texas, this caused astronomical price increases in gas supplied to cities and industries which hurt the state.
One can imagine how angry Texans were in having to buy artificially price-inflated gas and forced to sell to other states mandated low-price gas.
We have not forgotten our mistreatment by DC.