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Uncertainties impacting reserves, revenue, and costs (view source)
Revision as of 17:36, 10 January 2014
, 17:36, 10 January 2014→Taxes and regulatory costs
===Taxes and regulatory costs===
===Taxes and regulatory costs===
Taxes and regulatory costs, which show substantial variation, can also be expressed as ranges. Commonly, however, the effect of such governmental regulatory activity is to delay project performance, thus reducing profitability because of [[the time value of money]]. There is a clear tendency for operators to underestimate both the number and duration of such delays. (Capen, 1976)<ref name=Capen_1976 />. It is also possible that future investments and operating costs will increase as a result of future regulatory activity. (For more details on taxes, see the chapter entitled "[[About taxes]].")
[[Taxes|About taxes]] and regulatory costs, which show substantial variation, can also be expressed as ranges. Commonly, however, the effect of such governmental regulatory activity is to delay project performance, thus reducing profitability because of [[the time value of money]]. There is a clear tendency for operators to underestimate both the number and duration of such delays.<ref name=Capen_1976 /> It is also possible that future investments and operating costs will increase as a result of future regulatory activity.
==See also==
==See also==