How did the Elk ins act hurt corporations?

The Elk Hills Act, which allowed the U.S. government to reclaim oil reserves in California, hurt corporations by significantly reducing their control over valuable resources and limiting their profit potential. By asserting government ownership, it diminished the financial incentives for private companies to invest in extraction and development of oil resources. This shift not only impacted corporate revenues but also created uncertainty in the energy market, leading to decreased investment in energy-related infrastructure. Overall, the act curtailed corporate profit opportunities and altered the landscape of the oil industry.