Country Report

United States (Gulf of Mexico) upstream fiscal summary

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04 July 2018

United States (Gulf of Mexico) upstream fiscal summary

Report summary

The fiscal regime currently applicable for Federal OCS areas in the US comprises three key elements: signature bonus, royalty and federal corporate income tax (FIT). Signature bonus bids are used as the basis of lease awards and have been very high in recent years, particularly for certain deepwater leases. Royalty rates are fixed for each lease but the rate has been increased in recent years. Deepwater leases can benefit from a royalty-free volume allowance, which varies according to water...

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • Federal income tax
      • Fiscal treatment of decommissioning
      • Product pricing
      • Summary of modelled terms
    • Recent history of fiscal changes
    • Stability provisions
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Progressivity
    • Fiscal deterrence

Tables and charts

This report includes 14 images and tables including:

  • Revenue flowchart: US GoM concession
  • Timeline
  • Timeline detail
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Effective royalty rate - shelf and deepwater, oil and gas
  • Maximum government share - shelf and deepwater, oil and gas
  • Economic analysis: Image 3
  • Economic analysis: Image 4
  • Economic analysis: Image 5
  • Economic analysis: Image 6
  • Bonuses, rentals and fees
  • Current licence, equity and fiscal terms: Table 2
  • Assumed terms by location - oil and gas

What's included

This report contains:

  • Document

    United States (Gulf of Mexico) upstream fiscal summary

    PDF 299.56 KB