We have 'better' things to spend money on, like 'defense' (/s).

> Presumably oil coming out of the ground is free.

It's not free, it costs money to discover, extract, transport, process into anything usable, transport again, etc.

> Where is that money going?

Probably the companie(s) that discover, extract, transport, process, transport, etc. And their shareholders. And politician friends.