Governments cut takes to compete as world acreage demand falls

Journal Article · Mon Apr 24 04:00:00 EDT 1995 · Oil and Gas Journal

OSTI ID:37584

Meurs, A.P. van ^[1]

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1. Van Meurs and Associates Ltd., Calgary, Alberta (Canada)

During the last decade there has been significant change in fiscal terms and conditions applicable to petroleum exploration and production. An analysis of 226 fiscal systems in 144 countries indicates that there has been a substantial downward trend in government take. Of the 226 fiscal systems analyzed, 130 were changed during the last decade. The changes resulted in a lower government take in almost all cases. During the last decade the supply of exploration acreage has increased due to the fact that a large number of countries decided to open new areas. A number of other countries decided to accelerate the process of offering acreage. In total, the acreage available for exploration by private oil companies almost doubled during the last 10 years. At the same time the demand for acreage has been reduced due to lower oil prices and reduced oil industry cash flows. As a result, the ``price`` for acreage--in terms of government take--has declined. This development has created a new situation in which governments are now strongly competing for exploration and development investments. The question is, how do governments compete and what is the current status of the competition? The process of competition among governments is still poorly understood by governments and companies. The paper attempts to explain.

• OSTI ID: 37584
• Journal Information: Oil and Gas Journal, Journal Name: Oil and Gas Journal Journal Issue: 17 Vol. 93; ISSN OIGJAV; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
03 NATURAL GAS
COMPETITION
COMPILED DATA
DEMAND FACTORS
ECONOMICS
NATURAL GAS DEPOSITS
NATURAL GAS INDUSTRY
PETROLEUM DEPOSITS
PETROLEUM INDUSTRY
RESOURCE DEVELOPMENT
TAXES