Tax Accounting Method and Offshore Petroleum Development: A Policy Evaluation Model Employing Royalty Equivalents and Excise Taxes (Oil and Gas, Capital Budgeting, Simulation, Capitalization, Net Present Value)

The general goal of this research was to develop a methodology by which a government might choose a tax accounting method that would maximize the net present value of government revenues from a class of projects. The industry selected was offshore petroleum. The impact of tax accounting methods on reserves was also determined. The research employed a capital budgeting simulation model of a natural gas reservoir. The research did not consider uncertainty or capital rationing. The key financial variables were: tax accounting method, discount rates, expected price and costs, royalty rates, tax rates, tax credits, and expected bid. The reservoir model simulated the capacity optimization decision of the firm, that is, the decision as to the number of wells (initial capacity) with which to develop the reservoir. The basin model employed linear interpolation of the reservoir model data. It specifically dealt with the problem of minimum economic size (MES) and the resulting truncation of discovery frequencies of reservoirs.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Accountancy

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2014

Author dc:creator

• Boynton, Charles Edward

• Business Administration, Accounting

Identifier

(UMI)AAI8600130

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/71393