Insight
Carbon pricing, fiscal terms and upstream asset values
This report is currently unavailable
Report summary
CO2 emitted during the extraction of oil and gas accounts for less than 4% of total emissions associated with fossil fuels; nearly 90% of emissions occur in their final combustion. And very few countries currently require producers to either pay a carbon tax or participate in an emissions trading scheme. But prudent upstream companies are assuming that carbon charges are a question of when, not if, and including these variables in their asset valuation models. This analysis addresses the following questions: Where do upstream carbon charges currently exist, and how do they interact with other fiscal terms? What are the differences between carbon charges introduced in royalty/tax and production sharing contract (PSC) fiscal systems? What is the potential impact of carbon charges on upstream asset values?
Table of contents
- Executive summary
-
Carbon charges in upstream operations
- Carbon tax
- Emissions trading schemes (ETS)
- Carbon charges and upstream asset valuations
- Carbon charges and royalty / tax fiscal systems
- Carbon charges and PSC fiscal systems
- There may be trouble ahead...
Tables and charts
This report includes 10 images and tables including:
- Carbon tax rates for oil and gas producers
- Norwegian field CO2 emissions and ETS free credits
- EU ETS average trading price (US$/tonne, nominal)
- Current carbon prices in tax or ETS systems
- Reduction in asset values because of carbon charges
- Impact of new carbon charge under different royalty/tax systems
- Gross and net carbon charges (US$/tonne, nominal)
- Norway’s tax revenue from upstream operations 2017-2021
- Late-life production vs carbon intensity
- GPS under different methods
What's included
This report contains:
Other reports you may be interested in
Insight
Global upstream fiscal terms database
In this easy-to-use Excel workbook we summarise over 150 countries’ fiscal terms for the latest exploration opportunities.
$1,350
Insight
Corporate CCUS benchmarking 2024
Which oil and gas companies are embracing CCUS as part of their energy transition strategy?
$1,350
Country Report
Brazil upstream summary slides
To complement our more detailed Brazil upstream summary we provide a slide-pack of the key issues in country.
$4,750