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
Mahogany (SS349)
Mahogany is a large oil and gas field located in the Ship Shoal protraction area of the Central Gulf of Mexico. It is the first ...
$3,720
Insight
Global oil supply short-term update - July 2025
Minor changes to outlook as prices return to below $70/bbl
$1,350
Insight
Q2 2025 pre-FID project tracker: major upstream projects progress despite geopolitical headwinds
Our Q2 2025 outlook for global pre-FID upstream projects.
$6,750
