Tertiary crude treated most favorably in WPT. [Windfall Profit Tax of 1980]

Journal Article · Wed Oct 01 04:00:00 EDT 1980 · Drill Bit; (United States)

OSTI ID:6766664

Gill, D

The lower rate granted to tertiary crude by the Windfall Profit Tax of 1980 (WPT) promises to be the best incentive for expensive enhanced oil recovery projects ever to come out of Washington, DC. Granting a 30% tax rate to production from a tertiary project, the WPT rule makes such oil equal in tax treatment to newly discovered oil. The same base from which incremental revenue subject to tax is figured--$16.50/bbl--applies to both categories. The base rises by the same rate for both--inflation plus 2%/yr. No other crude is treated as favorably, including stripper oil. Nearly all crude that would be produced by a tertiary project is from reservoirs previously subject to controls, which means it would otherwise be taxed at a 70% rate for majors and a 50% rate for independents.

• OSTI ID: 6766664
• Journal Information: Drill Bit; (United States), Journal Name: Drill Bit; (United States) Vol. 29:8; ISSN DRBIA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002 -- Energy Planning & Policy-- Petroleum
ENERGY SOURCES
ENHANCED RECOVERY
FINANCIAL INCENTIVES
FOSSIL FUELS
FUELS
INDUSTRY
PETROLEUM
PETROLEUM INDUSTRY
PRICING REGULATIONS
RECOVERY
REGULATIONS
TAXES
WINDFALL PROFITS TAX