Lower oil price forces tax regime changes
The effective oil price ceiling created by the US shale boom is causing governments elsewhere to revise their tax codes
The shock of the dramatic fall in the oil price since 2014 has been reverberating ever since. But now there is a grudging acceptance that US shale oil could limit the price of WTI to a $55-65/bl band for a prolonged period, leading governments to permanently reform tax codes. Governments have a particularly tricky task if oil and gas revenue is the primary source of income. A balance must be struck between the conflicting demands of competing for international investment capital and collecting tax revenues. "Some countries have reduced the tax burden to try to maintain investment," says Derek Leith, global oil & gas tax leader at financial services firm EY, and contributor to its Oil and
Also in this section
16 January 2026
The country’s global energy importance and domestic political fate are interlocked, highlighting its outsized oil and gas powers, and the heightened fallout risk
16 January 2026
The global maritime oil transport sector enters 2026 facing a rare convergence of crude oversupply, record newbuild deliveries and the potential easing of several geopolitical disruptions that have shaped trade flows since 2022
15 January 2026
Rebuilding industry, energy dominance and lower energy costs are key goals that remain at odds in 2026
14 January 2026
Chavez’s socialist reforms boosted state control but pushed knowledge and capital out of the sector, opening the way for the US shale revolution
