Scarcity has little to do with subsidy in most cases.
People who run extractive industries end up with a lot of money and are tied to specific geographical areas. Lobbying government for concessions is a high ROI activity, and always has been.
On the other side of the coin, government can break these industries too. (And does so routinely) For example, the US/Saudi mutual strategic interest now has the Saudis pumping oil as fast as possible to hurt Russia and other players. If you're a driller in North Dakota or Alberta, you're fucked.
People who run extractive industries end up with a lot of money and are tied to specific geographical areas. Lobbying government for concessions is a high ROI activity, and always has been.
On the other side of the coin, government can break these industries too. (And does so routinely) For example, the US/Saudi mutual strategic interest now has the Saudis pumping oil as fast as possible to hurt Russia and other players. If you're a driller in North Dakota or Alberta, you're fucked.