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North Sea oil taxation in Norway

Abstract

The Norwegian government has developed a complex fiscal regime since 1963 to cover the activities of oil companies in the North Sea. The purpose of this article is to identify and quantify the financial effects of the fiscal system on operating companies involved in the Norwegian sector. The emphasis is on the effect of the tax package introduced by the government in the Odelsting Proposition No. 26 of February 1975. The impact of the tax is not found to be well related to the profitability of fields and the sensitivity of the tax burden to key variables such as reserves, oil price, capital and operating costs and inflation is examined. The most promising change appears to be a discriminatory refund or remission of royalty payments to marginal fields. The Act's main innovation, Special Tax, fails to discriminate between fields of profitability and could influence development decisions in marginal fields. The special allowance provision, by reducing the real cost of capital expenditure and favoring capital-intensive operations, could influence the techniques of exploitation. The effect of quasi-fiscal measures, particularly of government participation via Statoil, is also examined. 10 references.
Publication Date:
Jan 01, 1979
Product Type:
Journal Article
Reference Number:
EPA-05-004981; EDB-79-105145
Resource Relation:
Journal Name: Energy Econ.; (United Kingdom); Journal Volume: 1:1
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; 02 PETROLEUM; NORWAY; PETROLEUM INDUSTRY; TAXES; ECONOMIC IMPACT; ENERGY POLICY; ENERGY SOURCE DEVELOPMENT; NORTH SEA; PROFITS; ATLANTIC OCEAN; EUROPE; GOVERNMENT POLICIES; INDUSTRY; SCANDINAVIA; SEAS; SURFACE WATERS; 294002* - Energy Planning & Policy- Petroleum; 293000 - Energy Planning & Policy- Policy, Legislation, & Regulation; 020300 - Petroleum- Drilling & Production; 020700 - Petroleum- Economics, Industrial, & Business Aspects
OSTI ID:
6108255
Research Organizations:
Univ. of Aberdeen, Old Aberdeen, Scotland
Country of Origin:
United Kingdom
Language:
English
Other Identifying Numbers:
Journal ID: CODEN: EECOD
Submitting Site:
TIC
Size:
Pages: 33-46
Announcement Date:

Citation Formats

Kemp, A G, and Crichton, D. North Sea oil taxation in Norway. United Kingdom: N. p., 1979. Web. doi:10.1016/0140-9883(79)90021-5.
Kemp, A G, & Crichton, D. North Sea oil taxation in Norway. United Kingdom. doi:10.1016/0140-9883(79)90021-5.
Kemp, A G, and Crichton, D. 1979. "North Sea oil taxation in Norway." United Kingdom. doi:10.1016/0140-9883(79)90021-5. https://www.osti.gov/servlets/purl/10.1016/0140-9883(79)90021-5.
@misc{etde_6108255,
title = {North Sea oil taxation in Norway}
author = {Kemp, A G, and Crichton, D}
abstractNote = {The Norwegian government has developed a complex fiscal regime since 1963 to cover the activities of oil companies in the North Sea. The purpose of this article is to identify and quantify the financial effects of the fiscal system on operating companies involved in the Norwegian sector. The emphasis is on the effect of the tax package introduced by the government in the Odelsting Proposition No. 26 of February 1975. The impact of the tax is not found to be well related to the profitability of fields and the sensitivity of the tax burden to key variables such as reserves, oil price, capital and operating costs and inflation is examined. The most promising change appears to be a discriminatory refund or remission of royalty payments to marginal fields. The Act's main innovation, Special Tax, fails to discriminate between fields of profitability and could influence development decisions in marginal fields. The special allowance provision, by reducing the real cost of capital expenditure and favoring capital-intensive operations, could influence the techniques of exploitation. The effect of quasi-fiscal measures, particularly of government participation via Statoil, is also examined. 10 references.}
doi = {10.1016/0140-9883(79)90021-5}
journal = {Energy Econ.; (United Kingdom)}
volume = {1:1}
journal type = {AC}
place = {United Kingdom}
year = {1979}
month = {Jan}
}