Europe & Central Asia | 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
Records
63
Source
Europe & Central Asia | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
0.00226827 1970
0.00542258 1971
0.00695625 1972
0.01005281 1973
0.05507844 1974
0.06165787 1975
0.09627747 1976
0.14506464 1977
0.15367518 1978
0.39887139 1979
0.45720944 1980
0.44279682 1981
0.32334735 1982
0.48892765 1983
0.57977217 1984
0.59045138 1985
0.17393172 1986
0.26354342 1987
0.55629383 1988
0.84681182 1989
0.95336193 1990
0.42516206 1991
0.39616299 1992
0.39909951 1993
0.35209365 1994
0.35657001 1995
0.48758458 1996
0.40504619 1997
0.12182629 1998
0.36780513 1999
0.88285248 2000
0.6603939 2001
0.66249669 2002
0.66792321 2003
0.80322164 2004
1.10820067 2005
1.18337252 2006
1.14065404 2007
1.52448688 2008
0.93783081 2009
1.04629982 2010
1.52893931 2011
1.50222442 2012
1.33523482 2013
1.23331056 2014
0.6212951 2015
0.48649655 2016
0.70492416 2017
1.07154638 2018
0.96505198 2019
0.49850834 2020
1.07693633 2021
2022
Europe & Central Asia | 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
Records
63
Source