For every penny that oil prices increase after enactment of this policy, a one cent federal carbon tax will be levied. If prices go up fifty cents, carbon taxes will go up fifty cents. If prices fall fifty cents, taxes will fall fifty cents. And so on. At the end of each year these taxes will be fully refunded with proof of purchase. Un-refunded taxes will be used for infrastructure maintenance and upgrade.
OPEC's current policies are designed to hurt energy producers around the world, including the burgeoning American energy sector.
An oil-price-increase (carbon) tax will reward falling or moderate oil prices, and put pressure on producers to not raise prices too much or too quickly. Keeping prices at a reasonable level will also minimize the need for arctic drilling.