The country also had to pay the $1t in your example. The actual proper analysis is to measure the difference in consumer surplus between the different points on the supply-and-demand curve hit with versus without the additional production.

So you are saying oil companies are an arm of the government?

I don't know why but a lot of "blind capitalism" reeks of socialism with double standards. After all, if we followed this idea to its conclusion then the US should nationalize the oil industry. Except that isn't capitalism.