Australia | Oil rents (% of GDP)

Oil rents are the difference between the value of crude oil production at regional prices and total costs of production. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Commonwealth of Australia
Records
63
Source
Australia | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.01537102
1971 0.0253198
1972 0.07724571
1973 0.24809561
1974 1.24983189
1975 1.31204877
1976 1.35846553
1977 1.51713854
1978 1.35918446
1979 2.93104683
1980 2.80222598
1981 1.9066189
1982 1.14392595
1983 1.42608237
1984 1.57387651
1985 1.90782675
1986 0.91278214
1987 1.29742789
1988 0.77550421
1989 0.79433462
1990 1.18927836
1991 0.64564969
1992 0.6130943
1993 0.61053925
1994 0.46714505
1995 0.47262124
1996 0.4917214
1997 0.39018813
1998 0.21485961
1999 0.30202112
2000 0.87674535
2001 0.7204526
2002 0.80394089
2003 0.75762617
2004 0.73789012
2005 0.88735526
2006 0.86599208
2007 0.87198213
2008 0.93596099
2009 0.55306918
2010 0.70685444
2011 0.87782881
2012 0.67938565
2013 0.5385155
2014 0.4888725
2015 0.19789925
2016 0.17316898
2017 0.19866547
2018 0.26474467
2019 0.22919945
2020 0.10818887
2021 0.26420138
2022

Australia | Oil rents (% of GDP)

Oil rents are the difference between the value of crude oil production at regional prices and total costs of production. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Commonwealth of Australia
Records
63
Source