Article from: OGEL 4 (2010), in Upstream Petroleum Regulation incl. Host Government Contracts
This monograph summarizes the arithmetic and mechanics of state-of-the-art petroleum fiscal system analysis. Furthermore, it discusses the various issues and economic logic that form the basis of modern analysis. Unfortunately all practitioners do not subscribe to the same methodology or terminology. However, the virtue of the basic metrics described and discussed here is hard to ignore. The discussion and explanations are fortified by showing how the metrics fit in the context of a detailed economic model for a typical fiscal system.