Download or read book Modeling the Impact of Taxes on Petroleum Exploration and Development written by Mr.James L. Smith and published by International Monetary Fund. This book was released on 2012-11-27 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: We present a simple model of petroleum exploration and development that can be applied to study the performance of alternative tax systems and identify potential distortions. Although the model is a highly simplified, it incorporates many factors and some of the key tradeoffs that would influence an investor’s investment behavior. The model recognizes the role of enhanced oil recovery and treats the impact of taxation on exploration and development in an integrated manner consistent with an investor’s joint optimization of investments at both stages of the process. The model is simple and user-friendly, which facilitates application to a broad range of problems.
Download or read book Modeling the Impact of Taxes on Petroleum Exploration and Development written by Mr.James L. Smith and published by INTERNATIONAL MONETARY FUND. This book was released on 2012-11-27 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We present a simple model of petroleum exploration and development that can be applied to study the performance of alternative tax systems and identify potential distortions. Although the model is a highly simplified, it incorporates many factors and some of the key tradeoffs that would influence an investor’s investment behavior. The model recognizes the role of enhanced oil recovery and treats the impact of taxation on exploration and development in an integrated manner consistent with an investor’s joint optimization of investments at both stages of the process. The model is simple and user-friendly, which facilitates application to a broad range of problems.
Download or read book Fiscal Regimes for Extractive Industries Design and Implementation written by International Monetary Fund. Fiscal Affairs Dept. and published by International Monetary Fund. This book was released on 2012-08-16 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Better designed and implemented fiscal regimes for oil, gas, and mining can make a substantial contribution to the revenue needs of many developing countries while ensuring an attractive return for investors, according to a new policy paper from the International Monetary Fund. Revenues from extractive industries (EIs) have major macroeconomic implications. The EIs account for over half of government revenues in many petroleum-rich countries, and for over 20 percent in mining countries. About one-third of IMF member countries find (or could find) resource revenues “macro-critical” – especially with large numbers of recent new discoveries and planned oil, gas, and mining developments. IMF policy advice and technical assistance in the field has massively expanded in recent years – driven by demand from member countries and supported by increased donor finance. The paper sets out the analytical framework underpinning, and key elements of, the country-specific advice given. Also available in Arabic: ????? ??????? ?????? ???????? ???????????: ??????? ???????? Also available in French: Régimes fiscaux des industries extractives: conception et application Also available in Spanish: Regímenes fiscales de las industrias extractivas: Diseño y aplicación
Download or read book Effects of Petroleum Tax Design Upon Exploration and Development written by Thomas R. Stauffer and published by . This book was released on 1981 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Taxation of Petroleum and Minerals written by Philip Daniel and published by Routledge. This book was released on 2010 with total page 454 pages. Available in PDF, EPUB and Kindle. Book excerpt: "A timely and welcome guide to policy makers and advisers in the area of resource taxation, combining theoretical underpinings with. sound practical advice over a range of relevant topics, from tax design, through fiscal and financial modeling to tax administration. It will be an invaluable reference in countries such as my own, where the discovery of major new oil and gas reserves, a large. established mining sector, and new and renewed investor interest have attracted national and international interest, with particular focus on the generation, collection, sharing and management of extractive industry revenues." Joseph Amoake-Tuffour, Advisor, Ministry of Finance and Economic Planning, Republic of Ghana "This book is a rich source of reference for all who are concerned with the fiscal regimes for natural resources. The revenues which natural resources generate are often their main contribution to economic development. Thus, it is critical that governments and their citizens understand the fiscal alternatives available to them, the historical experience and what may be expected of these regimes, and the practical problems of administration and implementation. Those charged with making wise and informed decisions, especially where natural resources bulk large, will profit greatly from the contributions assembled here." Joseph C. Bell, Chair, Advisory Board, Revenue Watch Institute "This book is an essential tool for government and company officials, practitioners, advisers, and civil society advocates in working to promote efficient and equitable petroleum and minerals tax systems. Norway's Oil for Development Program works to further beneficial management of petroleum resources in a wide range of developing countries. The contributors to this book take stock of current knowledge about how to do this in the area of fiscal regime design---and extend it. There are no unique solutions, but this book offers insights and analytical techniques that can greatly enhance the capacity of decision-makers to design the right solutions for their own environments." Petter Nore (Director, Oil for Development Programme, Norwegian Agency for Development (NORAD) "Taxes on non-renewable natural resources provide more than 50% of fiscal revenues in some 20 countries. How do you design an effective system for raising this tax? There are trade-offs between rent capture, development incentives and risk sharing, all in an environment of long run investments, asymmetric information, and price, geological, and political risk. In response, fiscal systems employ a bewildering combination of profits taxes, royalties, production sharing, and revenues from sale of production rights. This volume brings together a fine combination of economists and practitioners who make sense of these challenging issues and provide essential reading for policy makers faced with these choices." Professor Tony Venables, B.P. Professor of Economics and Director of the Oxford Centre for the Analysis of Resource Rich Economies
Download or read book Tax Consequences of Oil and Gas Exploration and Development Under Tax Reform written by Lewis G. Mosburg, Jr. and published by . This book was released on 1986 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book brings petroleum explorationists up to date on the tax laws affecting the oil and gas industry. Some of the topics discussed include: the impact of the new tax rates, the treatment of expenditures and revenues, the alternative minimum tax, and the impact of tax reform on the availability of driling capital.
Download or read book Investment in Oil Exploration and Development written by Alexander G. Kemp and published by . This book was released on 1982 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Petroleum Taxation written by Carole Nakhle and published by Routledge. This book was released on 2008-04-29 with total page 277 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a framework of economic analysis which both governments and the petroleum industry can draw upon in their negotiation of fiscal terms that offer a fair and just basis of wealth allocation and encourage balanced oil field development.
Download or read book Taxes and Non Renewable Resources written by Jeff Strnad and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Oil & gas projects consist of a series of options. The mineral owner must first decide whether to spend money on "exploration" in order to learn the extent of potential reserves, the cost and timing of recovering the reserves, and the probability that the reserves are actually recoverable. The mineral owner holds an "exploration option" since the owner need not explore immediately but may wait until an increase in mineral prices makes the potential rewards from exploration more promising. After exploration of a property, the owner holds a "development option." The owner may pay to drill a test well to see if the reserves are recoverable, or the owner may put off any such test until prices are higher. If the test well proves there are recoverable reserves, the owner has a "production option." This option consists of the ability to complete the test well as a producer, and to drill and complete any other wells required to completely drain the recoverable reserves. The incentives for exploration, development, and production depend on the "threshold prices" at which an investor will execute each option. This article examines the impact of various tax policies on exploration and development threshold prices, using a simplified production model that collapses the production option into the development option. Capitalizing rather than expensing development costs (such as intangible drilling costs) creates incentives to do projects that have a lower probability of success, that have shorter well lives, and that have lower development costs. This shift in incentives creates a nonneutrality, causing investors to develop some properties prematurely while unduly delaying the development of other projects. Capitalizing development costs also causes a slight increase in the exploration threshold price and therefore reduces exploration. Capitalizing rather than expensing exploration costs (such as the costs of seismic analysis to detect potential underground deposits) results in a more complicated pattern of effects. This policy causes a large increase in the exploration threshold price, thereby reducing exploration. Since the taxpayer will not recover capitalized exploration costs until development, this policy also reduces the cost of development and lowers development threshold prices. As a consequence, capitalizing exploration costs results in more intensive development and production of known reserves as well as reduced exploration. This pattern is undesirable if the goal is to enhance national security by encouraging the creation of a pool of reserves that are available for immediate exploitation in case foreign supplies become unavailable. It also is possible that taxpayers may be able to circumvent most of the impact of rules requiring capitalization of exploration costs by strategically realizing losses. This possibility may blunt the undesirable national security impact of such rules, but the costs of the associated trading are social costs that would not arise under expensing.
Download or read book Fiscal Analysis of Resource Industries written by Ms.Oana Luca and published by International Monetary Fund. This book was released on 2016-02-24 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This manual introduces key concepts and methodology used by the Fiscal Affairs Department (FAD) in its fiscal analysis of resource industries (FARI) framework. Proper evaluation of fiscal regimes for extractive industries (EI) requires economic and financial analysis at the project level, and FARI is an analytical tool that allows such fiscal regime design and evaluation. The FARI framework has been primarily used in FAD’s advisory work on fiscal regime design: it supports calibration of fiscal parameters, sensitivity analysis, and international comparisons. In parallel to that, FARI has also evolved into a revenue forecasting tool, allowing IMF economists and government officials to estimate the composition and timing of expected revenue streams from the EI sector, analyze revenue management issues (including quantification of fiscal rules), and better integrate the EI sector in the country macroeconomic frameworks. Looking forward, the model presents a useful tool for revenue administration practitioners, allowing them to compare actual, realized revenues with model results in tax gap analysis.
Download or read book Issues in Extractive Resource Taxation written by Mr.James L. Smith and published by International Monetary Fund. This book was released on 2012-12-06 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a conceptual overview of economists’ attempts to learn about the effects of taxes on extractive resources. The emphasis is on research methods and techniques, with no attempt to provide a comprehensive tabulation of previous empirical results or policy conclusions regarding preferred tax instruments or systems. We argue, in fact, that the nature of such conclusions largely depends on the researcher’s choice of modeling framework. Many alternative frameworks and approaches have been developed in the literature. Our goal is to describe the differences among them and to note their strengths and limitations.
Download or read book Analysis of the Effects of Alaskan Production Tax Regimes on Current and Future Oil Production and State Revenues written by Jonathon Shepard and published by . This book was released on 2014 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report examines the effect that the Alaska Clear and Equitable Share (ACES) production tax has had on petroleum production in the State of Alaska and what effect, if any, the new production tax, SB 21, will have on future State of Alaska revenues. Through a literature review of tax regime changes and their effect on production in the United Kingdom over the last three decades, it was determined that direct taxes on oil production, and not taxes and credits on exploration and development, had the greatest impact on overall production. A review of historical tax regimes in Alaska showed that from the introduction of petroleum based taxes in 1955 till 2006, Alaska had a low, nonprogresssive production tax system. Beginning in 2008, the state switched to a high-level progressive tax regime with a total cap of 75%. Production decline models were used to determine that daily oil production in the State of Alaska became difficult, if not impossible, to predict after 2007. Comparing Alaska North Slope West Coast spot prices for oil to daily production rates detected irregularities in production, namely, when spot prices were high, production dropped. These two circumstances lead to the conclusion that ACES, a progressive tax system, had impacted daily production in the State of Alaska. Using production decline and future market value models based on historical data, projected daily production and monthly market prices were determined. Using these projections, twelve scenarios were run to determine how State of Alaska revenues would be impacted by a change from a progressive tax system to a flat tax rate. The scenarios showed that if market prices remain above $90 per barrel and no development and production occurs, the ACES tax system provides the highest revenues to the state. However, announced development plans that appear to be contingent on the SB 21 tax system indicate that new production, expected to be online in 2017, will occur, raising state tax revenues above those projected under ACES. Other scenarios show that if the spot market prices fall below $90 a barrel, the state will generate more revenue under SB 21.
Download or read book The Distributional Implications of the Impact of Fuel Price Increases on Inflation written by Mr. Kangni R Kpodar and published by International Monetary Fund. This book was released on 2021-11-12 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.
Download or read book Oil and Gas written by Patrick A. Hennessee and published by Lippincott Williams & Wilkins. This book was released on 2008 with total page 660 pages. Available in PDF, EPUB and Kindle. Book excerpt: The taxation of natural resources is one of the more complicated areas of the U.S. federal income tax system. From the acquisition of the mineral rights, to the exploration and development of the property, to the ultimate production of the mineral, there are unusual and challenging tax aspects along every step of the way. Oil and Gas: Federal Income Taxation is an invaluable single-source handbook for accounting, tax and legal practitioners concerned with financial issues related to oil and gas industry tax law. Updated and revised by noted oil and gas taxation authorities, Patrick A. Hennessee, Ph.D., CPA, and Sean P. Hennessee, J.D., M.S. Taxation, M.B.A., this detailed reference is divided into six main sections:
Download or read book Natural Resource Taxation in Mexico Some Considerations written by Ms. Alpa Shah and published by International Monetary Fund. This book was released on 2021-10-18 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mexico has large extractive industries and it traditionally has raised sizable fiscal revenues from the oil and gas sector. A confluence of factors—elevated commodity prices, financial challenges of the state-owned oil company Pemex, and revenue needs for financing social and public investment spending over the medium term—suggest that a review of Mexico’s taxation regimes for natural resources would be opportune, against the backdrop of a comprehensive approach to tackling Mexico’s challenges. This paper identifies opportunities for redesigning mining taxation to increase somewhat the revenue intake while maintaining the favorable investment profile of the sector. It also discusses recent reforms to the oil and gas fiscal regime and future reform considerations, with attention to the attractiveness of investment on commercial terms—an issue that should be placed in the context of an overall reform of Pemex’s business strategy and possibly of the energy sector more generally.
Download or read book Energy Abstracts for Policy Analysis written by and published by . This book was released on 1988 with total page 700 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investment in Oil Exploration and Development written by Alexander George Kemp and published by . This book was released on 1982 with total page 721 pages. Available in PDF, EPUB and Kindle. Book excerpt:
