Can Argentina learn from Poland’s 40% tax on shale?

Can Argentina learn from Poland’s 40% levy on shale concessions? According to the draft shale gas bill, the country would control some 40 percent of every Polish shale gas concession and also levy a tax of up to 40 percent on the explored gas – see the full report here. There’s also a post from “Natural Gas Europe” here.

My colleague Terence O’Dwyer comments

Regardless of whether the rumour is true, operators will be frustrated. When I spoke to operators in the production of the Shale Gas World Europe Congress, the number one bug bear they had was that there was a lack of consistent – and clear – policy around shale gas development. They were begging for clear updates on the new laws and fiscal and regulatory regime in Poland. They were yearning for clarity on the licensing rules. As yet, the new law has not been officially announced, so these rumours do little to help their cause.

I think operators want one thing from the government: How to understand and navigate the new regulatory regime to maximise the shale gas opportunity in Poland

I think the lesson is that clarity and a fairly high degree of predictability are two of the most important elements in the regulatory and fiscal regime.