Europe & Central Asia (excluding high income) | 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
Europe & Central Asia (excluding high income)
Records
63
Source
Europe & Central Asia (excluding high income) | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
0.01566884 1970
0.05512768 1971
0.06447781 1972
0.0966253 1973
0.40181302 1974
0.2808149 1975
0.22007481 1976
0.21249293 1977
0.19606904 1978
0.36241629 1979
0.40150313 1980
0.31889429 1981
0.21439906 1982
0.28215155 1983
0.41278847 1984
0.38522682 1985
0.14743195 1986
0.79971347 1987
3.75621546 1988
6.03020785 1989
7.29514824 1990
3.28358119 1991
3.25698133 1992
2.8866304 1993
2.74203392 1994
2.94234928 1995
4.01656974 1996
3.05144136 1997
1.02183534 1998
3.56078027 1999
7.39161422 2000
5.91653129 2001
5.90520948 2002
6.05347134 2003
6.70326741 2004
8.08106832 2005
7.88752896 2006
7.07102784 2007
8.51468317 2008
6.00977827 2009
5.77939283 2010
7.69585212 2011
6.97208267 2012
6.1886523 2013
6.24546621 2014
3.53391176 2015
2.91016075 2016
4.01361822 2017
6.44044155 2018
5.63796082 2019
3.01007945 2020
6.282904 2021
2022

Europe & Central Asia (excluding high income) | 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
Europe & Central Asia (excluding high income)
Records
63
Source