Van Meurs Energy regularly updates our World Rating of Oil Terms. The first rating was published in 2011-2013 (See our PUBLICATIONS for this rating). However, the updates of this rating for oil are now online for subscribers. This rating provides the relatively favorability to investors based on various profitability indicators and the level of government take of each fiscal system in the world. In total more than 600 fiscal system of more than 160 countries are rated.
The rating is based on the fiscal terms only. The rating does not rate investment opportunities, taking into account different levels of costs and netback prices for the various systems.
However, the rating is based on a wide range of standard price and cost assumptions.
A description is provided for each fiscal system.
The rating includes onshore, shallow water and deep water systems. Onshore systems apply to North American systems based on wells and international systems based on fields or contract areas. It includes fiscal systems for conventional and unconventional oil and gas in the same rating.
The rating is color coded. The user can select a particular fiscal system in order to evaluate how this system compares to all other systems in the world. The user can rate for any combination of price levels of $40, $50, $60, $70 and $80 dollars per barrel and cost levels of $10, $15, $20, $25 and $30 per barrel.
The Fiscal Rating is done for the following parameters (in real economic terms): undiscounted government take, government take discounted at 10%, undiscounted profit to investment ratio, 10% discounted profit to investment ratio, net cash flow per barrel, and the 10% discounted net present value per 10% discounted barrel.
We typically update the Fiscal Rating at least four times a year and prior to important bid rounds for which minimum fiscal terms are known. This provides a useful tool for investors to determine the relative attractiveness of terms for such bid rounds.
This is the most extensive fiscal rating in the world. It is a very useful tool for governments and investors to judge whether certain terms are competitive and attractive. The Fiscal Rating is in particular very useful in combination with the subscription to our WORLD FISCAL MODEL, where the user can specify different prices and costs for each case.
CONTACT US for a subscription.
On the basis of a confidentiality agreement we will also rate a particular fiscal system that a government or company wants to propose. CONTACT US for a proposal.