Energy and nationalism | Barking louder, biting less | Economist.com - The Diigo Meta page

• 12 Mar 07
  

  kevin whited

  International Politics Misc Energy

• 11 Mar 07
  

  Anders Tunold Kråkenes

  
  Norway, for example, levies a swingeing 78% tax on oil firms' profits. By contrast, its state-owned oil firm, Statoil, manages to recoup only a further 6-7% of the industry's profits by actively investing in wells and rigs.
  
  
  

  • oil firms themselves are coming round to the idea that the most profitable contracts are not always the best, since revanchist governments are likely to renege on any deal that seems too onerous in hindsight.
  • Perhaps the most elegant option for governments is to ask investors what share of the revenue from any given field they would be willing to surrender, and award production rights to the one that makes the highest offer.
  • Norway, for example, levies a swingeing 78% tax on oil firms' profits. By contrast, its state-owned oil firm, Statoil, manages to recoup only a further 6-7% of the industry's profits by actively investing in wells and rigs.

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