Country Report

United States (Lower 48) upstream fiscal summary

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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...

Table of contents

  • Basis
  • Licence terms
  • Government equity participation
    • 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
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
    • Fiscal deterrence

Tables and charts

This report includes 27 images and tables including:

  • Timeline
  • Timeline detail
  • State share versus Pre-Share IRR - oil
  • State share versus Pre-Share IRR - gas
  • Bonuses, rentals and fees
  • Ad Valorem (property) tax
  • Royalty rates
  • Assumed terms by location - oil
  • Assumed terms by location - gas
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • Effective royalty rate - onshore, oil
  • Effective royalty rate - onshore, gas
  • Maximum government share - onshore, oil
  • Maximum government share - onshore, gas
  • Investor IRR versus Pre-Share IRR - oil
  • Investor IRR versus Pre-Share IRR - gas
  • Fiscal terms for oil (US L48)
  • Fiscal terms for gas (US L48)
  • Appendix

What's included

This report contains:

  • Document

    United States (Lower 48) upstream fiscal summary

    PDF 960.37 KB