United States

Investment & Operational Criteria

Key Indicators

Risk Premia

3.750

%

Outlook

Negative

Rating

AA|1S|-

Ranking

7

Reserves (1P)

Total

mm boe

Oil

37

%

Summary

The Democrats' tax proposals have heightened the risks to regressive movements in legislation, increasingly disadvantaging US oil & gas. The scale of the rollback on tax reforms will, if passed, transform not only the domestic but international investment approach. While manageable, what the latest changes mean that the once seemingly enduring fiscal stability and openness is now in significant risk of being lost, which could take a generation to recover.

Updated

September 8, 2021

Country Basics

Region

Americas - North

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

United StatesUnited States

North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico.

Outline

Tax Regime
Type

Concession

Tax Regime
Notes

The fiscal regime that applies to the petroleum industry in the US consists of a combination of corporate income tax (CIT), severance tax and royalty payments.

Investment & 
Operational
Climate

The US is usually a positive operating for O&G. Not because of the limited law and regulations, but the transparency and uniformity of their application. The election of a Democrat to the White House, while not usually an issue, has taken on added frisson due to the election of the Biden & Harris ticket. This is precipitated by the virulent anti-O&G sentiments voiced by the presidential hopefuls on the campaign trail and the wider anti-business elements within the party, and significant uncertainty remains as to how much of that rhetoric will be transferred in to action over the coming 4-year term. Consequently, there is growing uncertainty over whether the legal framework governing O&G will continue to be uniformity and transparently applied.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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