You are here
Find us on:
Facebook Twitter Google Plus Youtube

Royalties

When a company starts pumping oil it pays a “royalty” (in effect, a tax) on the amount of oil produced. This is usually a relatively small percentage of production, and the government will be entitled to an addition share of the “profit oil.” (See also, “Cost Oil, Profit Oil”)

more articles in this category
  • Rents, rent-seeking
  • Royalties