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U.S. Department of Energy
Office of Scientific and Technical Information

Effect of taxation on the rate of return on outer continental shelf leases issued from 1954 through 1969

Thesis/Dissertation ·
OSTI ID:6755251
It is widely believed that oil and gas producers are able to profit at the expense of the general public, from lease operations on the Outer Continental Shelf. This hypothesis is tested by estimating the after-tax internal rate of return from 1223 leases issued on the Outer Continental Shelf from 1954 through 1969. The results of this analysis indicate that although oil and gas producers have generally been accorded several tax advantages not available to other industries, the competitive leasing methods used to issue offshore leases are such that prospective lease operators bid away any expected economic rent derived from these properties. This result casts doubt on the necessity of recent legislation at the federal and state levels aimed at reducing the alleged excessive profitability of oil and gas producers.
OSTI ID:
6755251
Country of Publication:
United States
Language:
English