If you drill for $30 and sell for $40 you are making a profit however if you have based your budget on selling for $80 then you have a problem. The masses need to be bought off with government jobs, free health care and education.Otherwise they will become restless and overthrow your government.
Every producer wants to pump more and sell it at a higher price but if they pump more the price drops, so they need to pump even more to make up for the lower price.
If the price gets too high then fracking becomes economic so you can't cut production too much to drive up the price as this will also cut your income.
You can sell a lot of oil cheap or a smaller amount for a higher price but your income will stay the same because fracking will place a cap on it.
Anyone remember "Peak Oil" and $200 a barrel price projections ? The elite who control the markets made fortunes from that price manipulation.