Front Matter
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

Front Matter Page

Fiscal Affairs Department

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

  • IV. Overview of Results

    • A. Intensity of Development

    • B. Diligence

    • C. Fiscal Progressivity

    • D. Price Volatility and Financial Risk

    • E. Impact of Fiscal Design on the Optionality of Enhanced Oil Recovery

    • F. Exploration Incentives and Performance

  • V. Conclusion

  • Tables

  • 1. Guide to Fiscal Regimes and Background Parameters Used in the Analysis

  • 2. Background Parameters

  • 3. Impact of Enhanced Oil Recovery on Resource Development and Recovery

  • 4. Impact of Oil Price on Resource Development and Recovery

  • 5. Marginal Chance of Exploratory Success

  • Figures

  • 1. Impact of Enhanced Oil Recovery Effectiveness on Optimal Development

  • 2. Impact of Enhanced Oil Recovery on Resource Recovery and Value

  • 3. Resource Recovery, by Fiscal Regime and Phase

  • 4. Total Net Present Value, by Fiscal Regime

  • 5. Optimal Development Programs, Price Impact

  • 6. Fiscal Impacts on Timing of Enhanced Oil Recovery and Abandonment

  • 7. Incentive to Delay Development: High Cost Fields

  • 8. Royalties Create Timing Conflicts in High Cost Fields

  • 9. Government Take, by Fiscal Regime

  • 10. Effective Marginal Tax Rates

  • 11. Risk Sharing (Coefficient of Variation in Net Present Value)

  • 12. Profitability Index versus Risk

  • 13. Net Present Value versus Risk

  • 14. The Option to Implement Enhanced Oil Recovery

  • 15. Value of Option to Cancel Enhanced Oil Recovery

  • 16. Impact of Price Simulations on International Oil Company Net Present Value

  • 17. Maximum Exploratory Failures Before Abandonment

  • 18. 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)

  • References

Modeling the Impact of Taxes on Petroleum Exploration and Development
Author: Mr. James L. Smith