Caribbean small states | 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
Caribbean small states
Records
63
Source
Caribbean small states | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972 1.37909061
1973 2.67928556
1974 11.55449077
1975 10.64902807
1976 10.89936961
1977 8.47807907
1978 9.55270036
1979 20.46600484
1980 14.32167449
1981 12.26069971
1982 4.96885329
1983 5.96768921
1984 6.69712027
1985 6.76431321
1986 3.04216155
1987 4.28491196
1988 3.03125788
1989 4.38282952
1990 5.53999226
1991 3.12890973
1992 3.12529537
1993 2.71199657
1994 2.53419488
1995 2.77152469
1996 3.14951679
1997 2.34855919
1998 1.16853454
1999 1.99856164
2000 2.82592889
2001 1.91968143
2002 2.41602558
2003 2.51050313
2004 2.85005427
2005 4.22491314
2006 4.61450559
2007 3.83820201
2008 4.57528708
2009 2.61206631
2010 3.0600744
2011 4.30054459
2012 3.56742576
2013 3.11418858
2014 2.73491406
2015 0.99392971
2016 0.77361654
2017 1.12525512
2018 1.56073172
2019 1.16980223
2020 1.23363289
2021 3.61173706
2022

Caribbean small states | 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
Caribbean small states
Records
63
Source