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
Insight
Offshore costs outlook H1 2025: inflation continues to ease
Short-term cost inflation outlook
$1,350
Asset Report
Monument (WR 272)
Monument is a large oil field located in the Walker Ridge protraction area of the US Gulf of Mexico. The field was discovered in 2020 ...
$3,720
Insight
US upstream week in brief: Q4 2024 archive
The US week in brief highlights the need-to-know current events from US upstream. Stories are supplemented with proprietary Woodmac views.
$1,350
