In this research paper, a new methodology to design a progressive and win-win royalty model for upstream fiscal systems is developed. The proposed royalty model is designed as a function of ...different boundary conditions of the market and the productive resources. These boundary conditions include the associated exploration and production risks, commodity prices, the extraction costs, besides the expected production and depletion rate. The behavior of the proposed royalty model under different oil prices, development costs, production rates, and exploration risks is investigated using deterministic and stochastic analysis. Our results prove that the applicable royalty rate increases with both the price and production rate while it decreases with increasing the development costs and the associated exploration and production risks. In addition, the proposed royalty model provides the contractor with sufficient incentives to develop marginal or low profitability fields and the development of deep offshore or frontier fields with high development and operating costs.
Evaluation of petroleum fiscal regimes for alternative selection is a challenging task in the oil and gas industry. The qualitative methods or quantitative methods which are based on static reserve ...estimates are problematic. A new approach incorporating dynamic reserve estimates and quadrant scale to evaluate fiscal regimes is proposed in this study. In this article, metaheuristic algorithms were applied to self-adaptively learn about the complex nature of reservoir to incorporate the changes in reservoir properties and well behaviors to generate field production profiles for building dynamic economic models. It also utilized the z-score standardization to create attractiveness-competitiveness and attractiveness-progressiveness quadrant scales. The results showed that the scales readily identified fiscal regimes that were at same time attractive, competitive, and progressive from fiscal regimes that were unattractive, noncompetitive, and regressive, and fiscal regimes that were within these two extremes. The relative movement along the scales also revealed how fiscal regimes responded as the profitability levels of the project were improved under each algorithm. The quadrant scale is a simple and easy-to-use method and could be an invaluable standard assessment tool for oil and gas decision and policymakers to improve upon investment considerations.
The nature of oil and gas Nation's petroleum fiscal system affects the survival of exploration and production (E&P) companies during periods of low oil price as these companies are expected to pay ...royalty to the government irrespective of the price of oil. This affects the sustainability of E&P companies during periods of low oil price. There is the need to design a petroleum fiscal systems that increases the chances of survival of firms during periods of low oil price. This research therefore considered the economic analysis of a delayed royalty framework for investments in the exploration and production of hydrocarbon. The delay in royalty payment was hinged as a function of the time it takes the contractor to recoup his investment capital. Three economic models for petroleum investment in an onshore oil field were built. Royalty rate in the models was varied between 0 and 30% and oil price was also varied between $30-$120/bbl. Model 1 was the base case model with zero royalty payment. While model 2 (Scenario 1) had royalty payment. Model 3 (Scenario 2) had a delayed royalty payment. Risk analysis was also carried out to see how the delayed royalty framework increases the sustainability of E&P firm using @Risk software. It was observed that the delayed royalty framework increases the chances of survival of firms as the NPV for Scenario 2 was positive but without the framework, it was negative at an oil price of $30/bbl. The payout period, government and contractor's take and the internal rate of return also show that the delayed royalty framework will increase the chances of a firm's survival during periods of low oil price. It is seen that the delayed royalty framework is another way to make a petroleum fiscal system progressive aside the already known factors used globally.
Philip the Handsome, the first Habsburg king of Castile, ruled briefly, in tandem with his wife except for the final three months of his reign, from the death of Isabella I in November 1504 to his ...own demise in September 1506. The problems, but also the potential, of the dynastic union of Castile and the Burgundian Low Countries were clear from the time he took his oath as a prince in 1502. Castile's royal treasury, in a severe crisis from 1503, was to become, owing to its political importance and its role as a major source of revenue, a primary arena for these dynastic interactions.
La deuda pública fue una de las opciones con que contaron los estados bajomedievales europeos a la hora de financiarse. Sin embargo, su evolución no fue uniforme, sino que dependió de la estructura ...de la hacienda pública y el desarrollo financiero entre otras cuestiones. La Corona de Castilla constituye el paradigma de aparición de la deuda pública en combinación con un sistema fiscal fuerte, la mayoría de cuyos ingresos se fundamentaban en la soberanía fiscal del príncipe en lugar del consenso e intermediación de otras instancias jurisdiccionales. Este hecho es fundamental a la hora de explicar sus particulares características, así como el éxito del sistema de deuda pública castellano durante el Renacimiento.
Simulation models that include royalty and tax provisions are used to examine the distribution between developers and governments of net returns from the development of Alberta’s oil sands deposits. ...A specific focus is to assess the effects on the level and distribution of net revenues associated with a number of changes in assumed revenue and expenditure conditions. Developers typically bear a greater share of the consequences of variations in capital expenditures than they do of changes in operating expenditures, prices, and exchange rates. A comparison across royalty and tax regimes suggest that there is a positive relationship between the level of net revenues estimated to accrue to either developers or governments and the share of the consequences of changes in conditions borne by that party. Some differences across production technologies are noted. The role of the federal government as a fiscal player in oil sands development has shrunk over time. In contrast, under the current regime, the Government of Alberta captures a higher share of net returns and typically bears a greater proportion of the consequences of changes in conditions than at any time since the introduction of an explicit royalty and tax regime in 1997.
This paper provides a conceptual overview of economists' attempts to learn about the effects of taxes on extractive resources. The emphasis is on research methods and techniques, with no attempt to ...provide a comprehensive tabulation of previous empirical results or policy conclusions regarding preferred tax instruments or systems. We argue, in fact, that the nature of such conclusions largely depends on the researcher's choice of modeling framework. Many alternative frameworks and approaches have been developed in the literature. Our goal is to describe the differences among them and to note their strengths and limitations.
En la segunda mitad del siglo XIX se inaugura en Argentina una nueva estructura jurídico-institucional y con ella la reformulación del sistema impositivo. La Constitución de 1853 imbuida en los ...principios liberales del laissez-faire suprimió las aduanas interiores que constituían el principal recurso de los Estados provinciales, por lo que se debió elaborar una serie de mecanismos para generar nuevos ingresos. La pérdida de las rentas de las aduanas interiores y la necesidad de recursos promovieron la creación de nuevas fuentes fiscales, lo que en Tucumán se tradujo en la desaparición de algunos tributos de la época colonial, la reformulación de otros y la incorporación de nuevos.
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