Insight
How would increasing royalty rates impact the US Gulf of Mexico?
This report is currently unavailable
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The Biden Administration kicked off its clean energy agenda with executive orders that have halted leasing on Federal lands and waters. We expect more fiscal and regulatory policy changes to follow after a review of the federal oil and gas leasing program is released in the summer. This insight quantifies the impact of a potential increase to the royalty rate of unleased blocks. We have stress-tested post-tax rate of return (IRR) at royalty rates ranging from the current rate of 18.75% to 58.75%.
Table of contents
- Executive summary
- Policy changes are imminent
- Royalty rate sensitivity analysis
-
How would greenfield projects fare with royalty changes?
- Company impact: Majors would be most affected
- How resilient are subsea tiebacks to an increase in royalty rates?
- Related insights
Tables and charts
This report includes the following images and tables:
- US GoM leased blocks
- Greenfield project IRR at various royalty rates
- Subsea tie-back project IRR at various royalty rates
What's included
This report contains:
Other reports you may be interested in
Asset Report
Texas LNG
Texas LNG is a proposed US Gulf Coast liquefaction terminal close to the US/Mexican border, near Brownsville, Texas. The project has a ...
$2,700
Insight
Webinar recording: Americas upstream outlook 2025
See the recording of a webinar we hosted on 13 February discussing the outlook for the Americas upstream oil and gas sector.
$1,350
Insight
Q1 North America LNG projects update: Sempra nears FID at Costa Azul LNG
The first phase is a mid-scale brownfield redevelopment requiring a quarter of the capex of a large-scale greenfield Gulf Coast project
$1,050
