کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
1734109 1521498 2012 18 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Modeling the horizontal well severance tax exemption in Louisiana
کلمات کلیدی
موضوعات مرتبط
مهندسی و علوم پایه مهندسی انرژی انرژی (عمومی)
پیش نمایش صفحه اول مقاله
Modeling the horizontal well severance tax exemption in Louisiana
چکیده انگلیسی

The Haynesville shale is an unconventional resource play in Louisiana that requires significant capital expenditures to develop. To produce at commercial rates, shale gas wells are drilled horizontally and fractured to release their gas, and since 1994, a severance tax exemption on horizontal wells has been in effect, offering an incentive to investors to promote industry activity. In 2011, the Haynesville shale contributed 60% to the state’s gas production, and the impact of the horizontal severance tax exemption on revenue collection has been significant. The purpose of this paper is to model the horizontal well severance tax exemption for Haynesville shale gas wells to quantify its impact and the manner in which severance tax revenues are split between the operator and government. We develop an analytic framework to value the tax exemption under prevailing production, cost, and price scenarios. We estimate that the 2011 inventory of Haynesville wells will generate between $1.2 to $1.5 billion in severance tax revenue throughout their lifetime with at least 64% accruing to the private sector. A discussion of policy issues and trade-offs in Louisiana’s horizontal severance tax exemption and implementation is provided.


► First empirical model of severance tax exemption at well bore level.
► Realistic regulatory model of complex tax regime to inform public debate and policy.
► Severance revenue split description between operator and government.
► Concise and precise model development and presentation.
► Wide general interest for public policy and state regulation.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Energy - Volume 40, Issue 1, April 2012, Pages 410–427
نویسندگان
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