So what’s your issue here?
If prices are falling low enough that it’s causing financial issues for some of these companies that would tell you that there’s too much supply relative to demand so you’d obviously slow production. By your own post you’re saying it’s so the refineries can stay in business, that would mean the price is too low for it to be economically viable.
If you let things continue eventually one would go bankrupt if they don’t slow production so one way or another the supply would come down.
The fact that the government recognized the issue and stepped in to take control of the industry in order to prevent issues is a win compared to how things are allowed to just burn out and fail potentially causing larger issues in for the economy in other countries.
Most countries wouldnt be able to say no to capital and it would meant the resources would continue to cheaply get extracted at the expense of the long term health of the counties industry.