California Ranks Dead Last for Oil Investment
California Ranks Dead Last for Oil Investment Climate
Monday Morning Report, February 21, 2012
Out of 136 jurisdictions, California ranked 91st as the most attractive for investment in petroleum exploration and development according to the Fraser Institute Global Petroleum Survey 2011. U.S. Offshore- Pacific ranked 101st. Out of all United States jurisdictions, California and Offshore Pacific ranked dead last.
California beat out several countries. The 10 least attractive jurisdictions for investment were Venezuela, Ecuador, Bolivia, Iran, Kazakhstan, Uzbekistan, the Democratic Republic of the Congo (Kinshasa), Iraq, Libya, and Russia. All but three of these countries - Uzbekistan, the Democratic Republic of the Congo (Kinshasa), and Libya - were also among the 10 least desirable jurisdictions for investment in oil and gas exploration and development in the 2010 survey.
Jurisdictions within North America, Europe, Australia, and New Zealand generally received the best rankings over all again this year. The 10 most attractive jurisdictions for investment on the All-Inclusive Composite Index are Mississippi, Ohio, Kansas, Oklahoma, Texas, West Virginia, the Netherlands North Sea, Alabama, Hungary, and North Dakota.
The Fraser Institute’s 5th annual survey of petroleum industry executives and managers rank petroleum jurisdictions on investment criteria, including barriers to investment in upstream oil and gas exploration and production around the globe. The survey responses have been tallied to rank provinces, states, and countries according to the extent of the investment barriers. Those barriers, as identified by the survey respondents, include high tax rates, costly regulatory schemes, and security threats.
A total of 502 respondents completed the survey questionnaire this year, providing sufficient data to evaluate 136 jurisdictions.