European Union | 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
European Union
Records
63
Source
European Union | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.00233508
1971 0.00530126
1972 0.00616336
1973 0.00864956
1974 0.04753312
1975 0.0364016
1976 0.03612117
1977 0.03170205
1978 0.0260163
1979 0.0526466
1980 0.06283025
1981 0.05948818
1982 0.04361599
1983 0.07162307
1984 0.07670256
1985 0.08422072
1986 0.02537609
1987 0.05113366
1988 0.03525037
1989 0.05274186
1990 0.05529965
1991 0.02760426
1992 0.02696406
1993 0.02819918
1994 0.02585598
1995 0.02576647
1996 0.03444059
1997 0.02954968
1998 0.00879333
1999 0.02826475
2000 0.06954031
2001 0.0489733
2002 0.05033766
2003 0.04803353
2004 0.05666411
2005 0.07776139
2006 0.07865135
2007 0.07363412
2008 0.09146501
2009 0.04933633
2010 0.05705074
2011 0.08303275
2012 0.08379427
2013 0.07268559
2014 0.0668559
2015 0.0316417
2016 0.02079007
2017 0.02998941
2018 0.0437835
2019 0.03747987
2020 0.01972447
2021 0.04041349
2022

European Union | 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
European Union
Records
63
Source