United States (Lower 48) upstream fiscal summary Report

Country Report 07 June 2023

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Report summary

Relatively complex concession-based fiscal regime, where licence terms are dependent upon land ownership. A cash or signature bonus is paid to the land owner when the lease is signed. Royalty rates vary depending upon whether land is State-owned private land, and when the licence was issued. Most states in the US apply a production or severance tax on the gross value of oil and gas production (minus royalties paid or due) irrespective of land ownership. Companies are also liable for...

Basis
Licence terms
Government equity participation
Fiscal terms
- Ring fencing
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- Severance (production) tax
- State income tax
- Federal income tax
- Fiscal treatment of decommissioning
- Product pricing
- Summary of modelled terms
Recent history of fiscal changes
Texas
- Split of the barrel and share of profit
- Effective royalty rate and maximum government share
Progressivity
- Fiscal deterrence