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Residents of the Komi Republic have enjoyed some benefits from the oil industry, through taxation, jobs and business opportunities. They have also suffered repeated oil spills, including one of the world's largest in 1994. Since most petroleum taxes go to Moscow for redistribution, the economic benefits are limited, and are focused in urban centres. Rural populations, who suffer most from oil spills, experience benefits primarily through companies' social projects. We analyse local perceptions of the corporate social responsibility performance of Lukoil-Komi and consider how a weak—or 'phantom'—social licence to operate can lead to open protest. [ABSTRACT FROM AUTHOR]

The article presents the perspective of economist Henry George on petroleum taxation. Topics discussed include George's single-tax system proposal, an overview of petroleum tax systems, and factors required for an effective tax according to George. The greatest argument supporting a severance tax system on natural resources is also mentioned.

When governments apply high tax rates targeted at natural resource rent, there must be generous deductions in order to avoid investment disincentives. How generous is disputed. Based on standard finance theory and recommendations from the OECD and the IMF, the value that firms attach to future deductions depends on the risks of these, and the companies' after-tax weighted-average cost of capital cannot be applied directly. As an example, a simple model quantifies the difference between pre-tax and post-tax systematic risk when tax deductions are less risky than pre-tax cash flows. Osmundsen et al. (2015) suggest that the difference must be ignored by oil companies, since they cannot find the separate market values of tax deductions. But companies operating in different jurisdictions cannot then appreciate differences in tax systems, not even approximately, which will lead to suboptimal decisions. Tax designers may instead assume that companies have gradually adopted more sophisticated methods of investment decision making. [ABSTRACT FROM AUTHOR]

British Columbia and Quebec introduced a carbon tax on the sale of retail gasoline in July 2008 and October 2007, respectively. Our findings suggest that the BC carbon tax had a short-term negative effect on gasoline consumption per capita and led to an amplified behavioural response, but only initially. This amplified response might have been the consequence of a constant carbon tax after July 2012. In comparison, we find weak evidence that the QC carbon tax had a negative effect on gasoline consumption per capita and created an amplified behavioural response. Moreover, these impacts appeared only years after the introduction of the QC carbon tax. This delay might be explained by the increase in carbon cost incurred by QC fossil fuel distributors after their participation in the Western Climate Initiative Regional Carbon Market, which started in January 2015. We believe, however, that more research is necessary to reach more definitive conclusions about the effect of carbon taxes on gasoline consumption. [ABSTRACT FROM AUTHOR]

Alaska depends on oil tax revenue for more than 90% of the state budget. In this article, we apply the nonlinear autoregressive distributed lag (ARDL) approach of to test whether the effect of changes in oil prices on Alaska’s oil reven ues is symmetric or asymmetric. The results show that oil prices have an asymmetric effect on Alaska’s oil revenues in the long run, though not in the short run. Additionally, declines in oil prices have a more substantial long-run effect than increases in oil prices. [ABSTRACT FROM AUTHOR]

The changes in tax policies have become the important factors of risk in oil and gas investment. To avoid this risk and stabilize the income, this paper taking China's overseas oil and gas investment as an example, constructs the tax policy stability evaluation index system, puts forward the calculation method of tax stability index and uses the index ranking to compare the tax policy of different host countries. The study shows that: (1) The risk of the changes in tax policies of China existing partners is relatively high, and the average value of tax stability index is only 0.48. (2) The OECD countries have less cooperation with China in oil and gas, but their stability index is higher, both in the upper and lower places of 0.76. (3) The changes in tax policies of Ecuador and other high-risk countries are cyclical. (4) OECD and other low-risk countries have limited China's oil and gas investment by setting higher oil and gas investment barriers. [ABSTRACT FROM AUTHOR]

Alaska has long relied on taxing petroleum extraction as a key source of funding for the State. The oil production tax has changed dramatically since the first barrels of oil were taken from Alaskan land. Most noticeably, the production tax has adjusted its progressivity element and has moved from a gross tax to a net tax. This Note provides a historical reference to Alaska’s oil production taxation scheme in an effort to address whether it is a “true” production tax. Asserting that Alaska has departed from a “true” production tax scheme insofar as it more resembles an income tax, this Note assesses whether the State should return to a “true” production tax. [ABSTRACT FROM AUTHOR]

This paper discusses whether and to what extent resource-rich developing countries should introduce local content policies, i.e. requirements to include local inputs in petroleum extraction activities of multinational corporations. We argue that local content needs to be seen as a public expenditure question, since local content requirements increase multinational costs, and hence reduce the taxes which can be extracted from these companies. This implies that there are opportunity costs in imposing local content requirements, since the forgone taxes can be used in others ways which could potentially do more to improve development prospects. Moreover, past experiences of resource-rich developing countries suggest that local content policies can exacerbate key problems of patronage and rent-seeking which resource rents generate, increasing the chance that the resource wealth will prevent rather than help development. These arguments suggest that an optimal local content policy in the context of flawed institutions is a more limited one than those typically pursued by developing countries with recently discovered petroleum reserves. Using qualitative data from Tanzania, a country with recent discoveries of substantial natural gas deposits, we analyze why local content tends to become such a central issue in debates and policy processes, despite its potentially problematic aspects. [ABSTRACT FROM PUBLISHER]

The main contribution of this paper is to examine the effect of a change in Alaska’s oil tax policy such as the 2007 Alaska’s Clear and Equitable Share (ACES) on the production of oil in Alaska, controlling for changes in macroeconomic conditions such as crude oil prices and interest rates. An autogressive distributed lag (ARDL) approach is employed to quarterly data for 1986:q1–2013:q1. The results show that the 2007 ACES has a significantly adverse effect on Alaska oil production in the both short- and long run. It is also found that the oil price plays a determinant role in influencing the short- and long-run behavior of Alaska oil production. Finally, the interest rate has been a significant effect on oil production in the short run, but has little impact in the long run. [ABSTRACT FROM PUBLISHER]

It is now timely to examine the important area of the 1980s reform of petroleum resource taxation, about which there is scant analysis, compared to other Australian Labor Party reform initiatives from that era. The questions concern the roles of Paul Keating, as Treasurer and Peter Walsh, as Minister for Resources and Energy, in petroleum taxation reform. Bourdieu’s social practice theory is used to analyse the consultative process of resource rent tax policy to legislation, which culminated in the Petroleum Resource Rent Tax Assessment Act 1987. This Act introduced a tax on profits, over a specified threshold, generated from the sale of petroleum commodities. To revisit the story of the 1980s petroleum tax reform, this article draws on primary archival documents, predominantly from Craig Emerson’s private papers that cover his time (in 1984) with the Office of the Minister of Resources and Energy. Unique insights are obtained into the consultative process via his hand-written files and personal observations. The findings indicate that although Paul Keating, Bob Hawke and advisors such as Ross Garnaut played important roles, Peter Walsh should be given the most credit for progressing the petroleum resource tax policy in 1984, that later resulted in legislation in 1987. [ABSTRACT FROM AUTHOR]

Widespread ownership of oil and natural gas resources by private individuals is unique to the United States. The owner's share is typically specified as a gross revenue royalty. We develop estimates of income from production of privately owned minerals. Focusing on onshore resources in the continental United States, we determine that the share of total oil and natural gas production attributable to privately owned minerals has been approximately 75 per cent in recent years. We find that average private royalty rates in recent years were 13.5 per cent for oil and 11.8 per cent for natural gas, and that private royalty income from oil and gas production was $21-22 billion in 2011 and 2012. We then briefly discuss four current policy issues upon which our estimates have bearing: exports of liquefied natural gas and crude oil, effects of refinery and pipeline constraints, state and federal tax policy, and regulation of technology. [ABSTRACT FROM AUTHOR]

This article examines two questions: (1) whether the Production Sharing Contract in oil and gas sectors between different countries should be considered as an international agreement or a private agreement; and (2) how to formulate uplift in the PSC which contains the value of equity for investors and the State. In the Production Sharing Contract, there is problem of setting the tax on oil and gas sector particularly uplift policy relating to the taxation of income in the state revenue sources. This issue is related to the return of controversy of operational costs recognized by the contractor (cost recovery claim). This tax controversy gave rise to uplift that is only levied on oil and gas State owned Enterprises contracting partners in the scheme of the Joint Operating Body, especially in the old fields with advanced technology (Enhanced Oil Recovery). The controversy is related to the declining production and increased production costs that are recognized by the contractor. [ABSTRACT FROM AUTHOR]

Petroleum administration can be regarded as a principal-agent problem. The government allocates exploration and production rights to petroleum companies on behalf of the population. The government is the principal and the companies are agents. With the aim of capturing revenue for the state, the government devises a petroleum tax system which takes account of the investment decisions made by the companies, while acknowledging for the fact that the companies may report strategically to the government. An important issue is how tax deductions are to be treated in investment analysis. A discrepancy arises here between assumptions made in some areas of tax theory and the actual investment analyses conducted by the companies. Tax theory has given rise to discussion and controversial tax proposals for the petroleum sector in Norway, Denmark and Australia. It led, for example, to reductions in tax-related depreciation for the Norwegian petroleum industry in May 2013. The article reviews this tax debate and analyses the implications of basing tax design on counter-factual investment behaviour. [ABSTRACT FROM AUTHOR]

The article focuses on the sustainable economic development of the oil and gas industry in U.S states such as Kansas the 21st Century. Topics discussed include management of impacts of oil and gas development through impact fees and taxation, production-related taxes imposed on the oil and gas industry, and the role played by Restatement (Third) of Property (Servitudes) in resolving easement and accommodation issues.

The article discusses North Dakota's Sixty-Third Legislative Assembly session. which dealt with controversies and opportunities of prosperity in the State. Topics discussed include the impacts of oil development in western North Dakota and tax revenue generated from oil production, taxation issues on oil extraction in the state, and the development of the state's youth in areas such as state funding for K-12 and higher education. It mentions the rights of citizens such as reproductive rights.

Domestic oil tax influences not only consumer price, but also oil company's bid-ask spread and international oil price via vertically related markets. In order to examine oil tax price effects, a random-effect variable-coefficient model is introduced and estimated based on data from 1970 to 2010. Results show that domestic oil taxes in major oil-importing countries are shouldered by both international and domestic markets, with the latter including the oil companies and consumers in the importing country. However, the impacts of oil taxes on domestic consumer prices can be quite different, with relatively weak consequences in the United States, and significantly positive and strong influence in the European Union and Japan. [ABSTRACT FROM AUTHOR]

The evaluation of the impact of an increase in gasoline tax on demand relies crucially on the estimate of the price elasticity. This article presents an extended application of the Partially Linear Additive Model (PLAM) to the analysis of gasoline demand using a panel of U.S. households, focusing mainly on the estimation of the price elasticity. Unlike previous semiparametric studies that use household-level data, we work with vehicle-level data within households that can potentially add richer details to the price variable. Both households and vehicles data are obtained from the Residential Transportation Energy Consumption Survey (RTECS) of 1991 and 1994, conducted by the U.S. Energy Information Administration (EIA). As expected, the derived vehicle-based gasoline price has significant dispersion across the country and across grades of gasoline. By using a PLAM specification for gasoline demand, we obtain a measure of gasoline price elasticity that circumvents the implausible price effects reported in earlier studies. In particular, our results show the price elasticity ranges between -0.2, at low prices, and -0.5, at high prices, suggesting that households might respond differently to price changes depending on the level of price. In addition, we estimate separately the model to households that buy only regular gasoline and those that buy also midgrade/premium gasoline. The results show that the price elasticities for these groups are increasing in price and that regular households are more price sensitive compared to nonregular. [ABSTRACT FROM AUTHOR]

This article provides an extensive examination of all major types of taxes and royalties levied on the oil and gas industry by federal, state, and local governments in the United States during the 1970-1997 period. Important taxes levied on the oil and gas industry can be grouped in to three broad categories based on their effects on resource extraction: (1) production, (2) property, and (3) income. Reliance on these three types of taxes differs substantially among the eight key states responsible for about 73 percent of U.S. oil and 83 percent of U.S. gas production (Alaska, California, Kansas, Louisiana, New Mexico, Oklahoma, Texas, and Wyoming). A detailed comparison of differences in institutional structure and effective tax rates for the eight major oil and gas producing states is presented. [ABSTRACT FROM AUTHOR]

Many studies have shown that fuel demand is quite elastic and that the best way to reduce fuel use (to tackle climate issues) is by taxing fuel. Yet it seems almost impossible to do so, particularly in those countries with low prices and high demand, The purpose of this paper is to cast light on the difficulties of raising gasoline taxes by analyzing the determinants of gasoline taxation. We believe that one of the reasons for the difficulties is that political pressure influences the political decisions regarding taxation of gasoline consumption. Not only do low taxes and thus low prices encourage high consumption, but high levels of consumption also lead to considerable pressure against raising the taxes. Our findings also point to the significance of other factors such as government debt (a higher debt leads to a higher gasoline tax rate). [ABSTRACT FROM AUTHOR]

The objective of this paper is to estimate a petrol expenditure function for Spain and to evaluate the redistributive effects of petrol taxation. We use micro data from the Spanish Household Budget Survey of 1990/91 and model petrol expenditure taking into account the effect that income changes may have on car ownership levels, as well as the differences that exist between reported expenditure and real consumption during the week of reference. Our results show the importance that household structure, place of residence and income have on petrol expenditure patterns. We are able to compute income elasticities of petrol expenditure, both conditional and unconditional on the level of car ownership. Non-conditional elasticities, while always very close to unit values, are lower for higher income households and for those living in rural areas or small cities. When car ownership levels are taken as fixed, the conditional elasticity obtained is around one half the value of the non-conditional ones. As regards the redistributive effects of petrol taxation, we observe that for the lowest income deciles the share of petrol expenditure increases with income, and thus the tax can be regarded as progressive. However, after a certain income level the tax proves to be regressive. [ABSTRACT FROM AUTHOR]

Provides information on petroleum tax reform proposals in Norway and Denmark. Features of the petroleum tax reform proposals; Problems in the implementation of the proposals; Principles and implementation of a neutral tax based on the standard assumption of value additivity.

Reports on the impact of the tax hike on the economics of North Sea oil in Great Britain in 2002. Overview of oil and gas industry and trade; Cost of development and operations in the North Sea; Use of technology and optimization of existing infrastructure to lower costs for developments; Implications for the oil and gas industries.

Discusses key issues concerning income distribution and fuel taxes in Taiwan in 2000. Key issues of interest; Analysis of pertinent topics and relevant issues; Implications on the energy sector and economic development.

Since the major oil price explosion and collapse over the last 20 years, host governments in producing countries have made substantial Changes to their petroleum tax systems. In many cases, these changes have resulted in more profit-related systems being established. These have an inherent flexibility which is more appropriate for an environment of fluctuating prices. They are generally not accurately targeted on economic rents, however, and if oil prices remain low further discretionary changes may be required. In some important countries, reliance on old-style systems targeted on gross revenues still remains. These are not well adapted to an era of low oil prices, and investment disincentives are present. [ABSTRACT FROM AUTHOR]

Presents a study which examined the comparative impacts of petroleum fiscal systems in the United Kingdom, Norway, Denmark and the Netherlands, on new field developments. Reason economic rents from mineral exploitation have been thought to be a suitable subject for taxation; Impact of the fiscal systems in money-of-the-day (MOD) terms; Claims that the timing of tax payments is important; Impact of the tax system on investors.

Evaluates the use of techniques of modern financial economics, with a sample application to oil development under a complex tax system. Information on conventional discounted cash flow (DCF); Bias associated with the application of DCF; Concerns about DCF; Details on the theory of valuation; Information on the price oil model.

Presents a study that investigates different reasons for defending or refuting additional crude oil taxation directly or indirectly through an import duty. Stand of European policymakers on the import duty on crude oil; Model and results of the study; Conclusion.