Ecuador | 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
Republic of Ecuador
Records
63
Source
Ecuador | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.0208367
1971 0.03193204
1972 0.72242485
1973 2.80924506
1974 7.83255696
1975 5.85937662
1976 6.26975907
1977 4.32661744
1978 4.87918049
1979 11.10986919
1980 10.58050048
1981 7.43648309
1982 4.7513286
1983 8.67513964
1984 9.35151977
1985 9.45521761
1986 4.68377907
1987 4.99756494
1988 6.87057153
1989 9.05299642
1990 11.99110393
1991 6.18084018
1992 6.68067546
1993 6.52474732
1994 5.82667849
1995 6.4536514
1996 7.78787008
1997 6.17219684
1998 3.21214312
1999 7.86330812
2000 16.33249509
2001 9.09069291
2002 8.07370406
2003 8.39147653
2004 12.25082525
2005 16.53663965
2006 17.98687911
2007 16.51382178
2008 18.65457486
2009 8.82457083
2010 11.19414785
2011 16.01185723
2012 13.96385977
2013 12.29786051
2014 11.08263813
2015 4.19483661
2016 3.2615855
2017 4.51289937
2018 6.7591001
2019 5.52629824
2020 2.56275989
2021 6.40325083
2022

Ecuador | 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
Republic of Ecuador
Records
63
Source