Euro area | 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
Euro area
Records
63
Source
Euro area | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.00233508
1971 0.00574616
1972 0.0066299
1973 0.00925088
1974 0.05092335
1975 0.03895813
1976 0.03865708
1977 0.03292103
1978 0.02704326
1979 0.05461828
1980 0.06552012
1981 0.06021467
1982 0.04137483
1983 0.06757898
1984 0.07184127
1985 0.07702654
1986 0.02253087
1987 0.03088986
1988 0.02219269
1989 0.03191783
1990 0.03359358
1991 0.01528179
1992 0.01429449
1993 0.01443823
1994 0.01278759
1995 0.01221113
1996 0.01630492
1997 0.01373435
1998 0.00400651
1999 0.01075001
2000 0.02500091
2001 0.01791642
2002 0.0199446
2003 0.01925311
2004 0.02158091
2005 0.03048431
2006 0.03195029
2007 0.03248414
2008 0.04036226
2009 0.02088936
2010 0.0262905
2011 0.04011363
2012 0.04272922
2013 0.03931022
2014 0.03812697
2015 0.01794134
2016 0.01071916
2017 0.01623377
2018 0.02533698
2019 0.0214796
2020 0.01265773
2021 0.0258221
2022

Euro area | 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
Euro area
Records
63
Source