Insight
How would increasing royalty rates impact the US Gulf of Mexico?
This report is currently unavailable
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The Biden Administration kicked off its clean energy agenda with executive orders that have halted leasing on Federal lands and waters. We expect more fiscal and regulatory policy changes to follow after a review of the federal oil and gas leasing program is released in the summer. This insight quantifies the impact of a potential increase to the royalty rate of unleased blocks. We have stress-tested post-tax rate of return (IRR) at royalty rates ranging from the current rate of 18.75% to 58.75%.
Table of contents
- Executive summary
- Policy changes are imminent
- Royalty rate sensitivity analysis
-
How would greenfield projects fare with royalty changes?
- Company impact: Majors would be most affected
- How resilient are subsea tiebacks to an increase in royalty rates?
- Related insights
Tables and charts
This report includes the following images and tables:
- US GoM leased blocks
- Greenfield project IRR at various royalty rates
- Subsea tie-back project IRR at various royalty rates
What's included
This report contains:
Other reports you may be interested in
Asset Report
Monument (WR 272)
Monument is a large oil field located in the Walker Ridge protraction area of the US Gulf of Mexico.
$3,720
Asset Report
Arnold (EW 963)
Arnold (EW 963) is a small oil field located in the southeastern part of the Ewing Bank protraction area of the Central US Gulf of ...
$3,720
Asset Report
Itaipu
Itaipu is a pre-salt oil field located in the northern Campos basin. The field lies within the BM-C-32 licence and has not been ...
$3,720
