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Oil and gas

Oil and gas calculations

Oil and gas calculations encompass all the activities to find, produce, and sell motor fuels.
The product supports upstream transactions, such as exploration and production, as well as midstream and downstream transactions, beginning at refineries and ending with retail transactions. The product manages oil and gas calculation of tax through all points in the value chain.
An integral part of these transactions is the ability to correctly apply motor fuels excise tax to the oil and gas life cycle. Oil and gas transactions are specific to the motor fuels excise tax system within the U.S.
These features support oil and gas transactions:
  • Transportation types:
     Specify the mode of oil and gas transportation and define that mechanism as bulk or non-bulk. Custom and standard content types are available for transportation types. The
    Mode of Transport
     field in the XML input performs a look-up against transportation types and, based on the state and the fuel type, oil and gas tax calculations use the transportation type to determine taxability.
  • Operating licenses:
     Federal and state governments allow oil and gas companies to operate as specific roles, such as an exporter, transporter, or blender throughout the motor vehicle fuel value chain based on their operating license. Operating licenses are specific to products and the handling of those products. Operating licenses exist for points throughout the value chain and provide the ability to do business and be exempt from standard taxes. Operating licenses can be associated with customers, companies, and vendors.
    Operating License Types
     are part of standard content and vary by state. Types also relate to roles associated to a customer, vendor, or company within effective ranges.
  • Vendors:
     In buy-side scenarios, vendors play a specific role and have operating license types for oil and gas transactions.
  • Address modifiers:
     Address information specific to oil and gas transactions impact the tax rate. Latitude, longitude, IRS registered facilities, bulk storage, and IRS facility identification can be modifiers for certain oil and gas scenarios.

This article applies to:

  • Product: ONESOURCE Determination, ONESOURCE Indirect Tax
  • Sub Product: oil-and-gas