Petroleum fiscal systems: 5 things to look for in 2019
Sudden oil price movements will dictate the pace of fiscal change in 2019. We had a temporary price spike in 2018, but it didn’t last long enough to generate a significant fiscal response. What it has done is remind fiscal policy-makers that we are not operating in the ‘lower, forever’ world many were predicting a year ago. Fiscal systems must be flexible to accommodate high (US$80+) and low (US$50-) prices going forward. We anticipate five main fiscal themes to develop in 2019.