Government takes decline as nations diversify terms to attract investment

Journal Article · Mon May 26 04:00:00 EDT 1997 · Oil and Gas Journal

OSTI ID:479479

Meurs, A.P. van; Seck, A ^[1]

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

A new review of 324 fiscal systems in 159 countries indicates that the trend of declines in government take has continued during the last 2 years. An earlier OGJ article concluded that government take had declined considerably during the previous decade in response to an increased availability of acreage. The fiscal system rating is based on eight economic yardsticks. They are: rate of return; net present value per barrel; ability to absorb geological risk; attractiveness of incremental exploration investments; attractiveness of incremental development investments; government take; bonanza economics; and the degree of front-end loading of the fiscal system. Based on these criteria the fiscal systems are rated, based on a point system, from the most attractive (five star) terms to the least attractive (one star). Table 1 provides an overview of the rating and ranking of 50 of the most interesting fiscal systems. Figure 1 provides the government take and corporate take for the systems listed in Table 1, based on a weighted average of 12 fields. The paper discusses attractive, tough, and diversifying terms, and regional competition.

• OSTI ID: 479479
• Journal Information: Oil and Gas Journal, Journal Name: Oil and Gas Journal Journal Issue: 21 Vol. 95; ISSN OIGJAV; ISSN 0030-1388
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
03 NATURAL GAS
04 OIL SHALES AND TAR SANDS
29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPARATIVE EVALUATIONS
COMPILED DATA
ECONOMIC POLICY
GLOBAL ASPECTS
INCOME DISTRIBUTION
INVESTMENT
RESOURCE DEVELOPMENT
ROYALTIES