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