The result is a shortage. If the price is held low enough, it might force producers to operate at a loss, which basically means they will stop producing.
Exactly. Many (most?) shortages are caused by a shortage of materials. In other words, you just can't point at manufacturers and demand that they produce more. And if you force them to keep prices artificially low, they may not be able to afford the materials they need when those become available. That is how a situation of scarcity can last longer than it should-- when people with political intentions step in and try to solve problems that they do not understand, they usually make things worse.
The US has the capability to produce more oil than we need; possibly more than any other nation on the planet. We are deliberately limiting ourselves because some politicians and activists think that, if you put a nation under enough adverse pressure, it will invent a magical form of energy that solves all of our energy and climate issues. If you cannot distinguish between real life and a comic book, you probably should not be running a nation.