Investigating Tax Distortions: An Applied Model of Petroleum Exploration and Extraction Decisions

Abstract

A numerical model is proposed for the testing of distortions caused by petroleum fiscal systems on the exploration and extraction activities of a profit-maximizing firm. Traditional models have not been capable of testing for the distortions caused by the complex tax structures most often used by governments. Two tax combinations, as well as certain other taxes, are analyzed for distortions in the model. The model is parameterized using generic data because specific jurisdictions are not considered. The distortions due to rentals and royalties are as expected by theory. Property taxes show a new distortion result where production tilting is ambiguous.

Liquid level gauge based in plastic optical fiber

“…Such as the requirement to quantify the production volume, by inferring the liquid level in the container (typically with some meters height). This requirement is not only an individual company requirement, to control the company production efficiency and gains, but also a legal imposition to estimate fiscal taxes [1]. Usually, the liquid level in the container is measured by traditional technologies, such as differential pressure level meters, radar, magnetostrictive, or magnetic float technologies [2,3].…”

Integrating Geochemical Anomaly and Remote Sensing Methods to Predict Oil- and Gas-Bearing Areas in the Yanchang Oil Field, Ordos Basin, China

“…Various models for oil and gas exploration have been put forth based on dispersion migration mechanisms and oil and gas micro-percolation (Turner, 1980;Ungerer et al, 1984;Tissot et al, 2012;Blake, 2013). The reservoir hydrocarbons generate negative ions in the process of migrating upward along with fractions and produce a redox battery effect with anodic areas and anode surfaces because of the potential difference (He et al, 2013;Zhang et al, 2005;Lu et al, 2013).…”