Topical issues in petroleum tax design are in this chapter discussed by means of a tax model for a net income tax system (Norway) and a representative PSA regime. We analyse the entire life cycle of a typical petroleum project, i.e., the exploration decision is included. Many petroleum tax...

Natural gas liquids and liquefied petroleum gases have played an important role in the current US shale gas boom. Depressed gas prices in recent years have made pure natural gas operations less profitable. The result is that liquids components in gas production have become increasingly important...

Drilling expenses has increased sharply in recent years. Average meters drilled per day significantly influences exploration costs. Hence it is important to understand the factors that determine meter per day. In this study we analyse the effect of drilling depth on meter per day. There are...

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...

This paper studies how drilling costs are affected by the business cycle. We decompose the major elements in these costs – rig rates and drilling speed – and examine how they interact with variations in oil prices. A highly relevant consideration in the current circumstances is whether oil...

We examine drivers of cost overruns in Norwegian development projects in the oil and gas sector. The multivariate longitudinal econometric analysis employs a unique and detailed dataset consisting of 80 different projects between 2000 and 2015. Among the significant results, we find that the...

Tax officials judge whether a multinational's transfer price is consistent with the arm's-length standard, the price at which two independent firms would carry out a similar transaction, by using data from comparable but independent transactions. In vertically integrated industries, the only...

The paper models and discusses important dimensions when choosing development concept for petroleum projects, and the consequences it has for production schedule, recovery rate and relevant economic parameters. By means of case analysis, optimal concept selection is analysed from the perspective...

Drilling expenses has increased sharply in recent years. The productivity of drilling operations - in terms of meters drilled per day - significantly influences exploration costs. Hence it is important to understand the factors that determine drilling productivity. In this study we analyze the...

Optimal regulation is developed for a case with type-dependent dynamics in costs. In exploiting nonrenewable natural resources, a government faces the problem that extraction companies possess private information about the size of the reserves. Optimal contracts, in a two-period framework,...