Arctic Offshore Exploitation (Regulatory and Tax Regimes for Oil Companies in the USA, Russia and Norway)

Освоение арктического шельфа (Регулирование и налогообложение нефтяных компаний в США, России и Норвегии)

Bazaleva, Regina (Базалева, Регина) () and Peter Kaznacheev
Additional contact information
Bazaleva, Regina (Базалева, Регина): Russian Presidential Academy of National Economy and Public Administration (RANEPA)
Authors registered in the RePEc Author Service: Regina Samoilova (Bazaleva)

Ekonomicheskaya Politika / Economic Policy, 2015, vol. 2, 110-132

Abstract: A significant part of global hydrocarbon resources is located in the Arctic offshore. Despite its limited exploration to-date in comparison with traditional fields, some countries have already achieved certain success in the development of Arctic projects. The drop in oil prices in 2014-2015 raises serious questions about the future dynamics of fields development in the Arctic. Such progress will be determined by oil prices and, to an even greater extent, by advancements in technological innovation and cost reduction, which, in turn, depend on the institutional environment and tax regimes. The article covers in detail the approach to the development of the region in the United States the country with the largest oil production on the Arctic offshore. The authors researched the regulatory framework of companies’ access to Arctic offshore hydrocarbons in the USA and the existing tax system. For understanding the economics of oil part of the Arctic projects, the authors have analysed economic efficiency of the development of a hypothetical sample field on the Arctic offshore. Calculations of economic indicators of such a sample project were made based on tax regimes of three countries which are advanced in the development of the reserves in the Arctic, namely, the USA, Russia and Norway. These calculations allow to determine the approximate threshold of profitability of an Arctic project under different assumptions about oil prices and different models of regulation. Based on these comparisons, the authors made conclusions with regards to institutional and fiscal conditions which may contribute to the development of hydrocarbons in the Arctic offshore region.

Keywords: Arctic; offshore exploitation; government regulation; taxation; oil production; USA; Russia; Norway (search for similar items in EconPapers)
JEL-codes: D2 H2 H3 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://repec.ranepa.ru/rnp/ecopol/ep1524.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rnp:ecopol:ep1524

Access Statistics for this article

Ekonomicheskaya Politika / Economic Policy is currently edited by Vladimir Mau

More articles in Ekonomicheskaya Politika / Economic Policy from Russian Presidential Academy of National Economy and Public Administration Contact information at EDIRC.
Bibliographic data for series maintained by RANEPA maintainer ().