Progressive Elements of Petroleum Fiscal Systems: Options for African Producers
Article from: OGEL 3 (2006), in Africa
p>With the current and prolonged oil price shock the World's petroleum fiscal systems are under intense scrutiny. With higher oil prices producing countries enjoy greater revenue but, they are not necessarily getting a higher percentage of profits from oil production. Petroleum fiscal system design determines how profits are divided. Progressive systems offer governments greater percentages of net profit when profitability increases. With regressive fiscal systems oil companies receive a greater share of profits when profitability increases - and most systems are regressive.