Modeling the impact of taxes on petroleum exploration and development [[electronic resource] /] / James L. Smith

• Record Nr.: UNINA9910462933603321
• Autore: Smith James L (James Lee), <1950->
• Pubbl/distr/stampa: Washington, D.C., : International Monetary Fund, c2012
• ISBN: 1-4755-3420-5; 1-283-94792-7; 1-4755-2592-3
• Descrizione fisica: 1 online resource (47 p.)
• Collana: IMF working paper ; ; WP/12/278
• Soggetti: Petroleum industry and trade; Petroleum - Taxation; Petroleum industry and trade - Mathematical models; Electronic books.
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: At head of title: Fiscal Affairs Department -- verso of t.p.; "November 2012" -- verso of t.p.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Cover; Contents; I. Introduction; A. Resource Development; B. Resource Exploration; II. Related Research; III. The Modeling Approach; A. Primary Production; B. Enhanced Production; C. Optimal Field Development; D. Solution Method; E. Modeling Price Volatility and Financial Risk; F. Exploration; G. Integration of Exploration and Development; H. Fiscal Regimes Considered; Tables; 1. Guide to Fiscal Regimes and Background Parameters Used in the Analysis; 2. Background Parameters; IV. Overview of Results; Figures; 1. Impact of Enhanced Oil Recovery Effectiveness on Optimal Development; 3. Impact of Enhanced Oil Recovery on Resource Development and Recovery2. Impact of Enhanced Oil Recovery on Resource Recovery and Value; 3. Resource Recovery, by Fiscal Regime and Phase; A. Intensity of Development; 4. Total Net Present Value, by Fiscal Regime; 5. Optimal Development Programs, Price Impact; 4. Impact of Oil Price on Resource Development and Recovery; 6. Fiscal Impacts on Timing of Enhanced Oil Recovery and Abandonment; B. Diligence; 7. Incentive to Delay Development: High Cost Fields; C. Fiscal Progressivity; 8. Royalties ; Create Timing Conflicts in High Cost Fields; 9. Government Take, by Fiscal Regime10. Effective Marginal Tax Rates; D. Price Volatility and Financial Risk; 11. Risk Sharing (Coefficient of Variation in Net Present Value); 12. Profitability Index versus Risk; E. Impact of Fiscal Design on the Optionality of Enhanced Oil Recovery; 13. Net Present Value versus Risk; 14. The Option to Implement Enhanced Oil Recovery; 15. Value of Option to Cancel Enhanced Oil Recovery; F. Exploration Incentives and Performance; 16. Impact of Price Simulations on International Oil Company Net Present Value; 17. Maximum Exploratory Failures Before Abandonment; 5. Marginal Chance of Exploratory Success18. Full Cycle International Oil Company Net Present Value; 19. Distorted Resource Exploration: Exploration and Development Stages; 20. Tax Impact on Total Resource Value (Full Cycle); 21. Government Take (Full Cycle); V. Conclusion; References
• Sommario/riassunto: 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