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
High income
Records
63
Source
High income | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.28127463
1971 0.32622554
1972 0.38178596
1973 0.45082602
1974 1.83897285
1975 1.63200977
1976 1.81254554
1977 1.78895668
1978 1.51603027
1979 2.84677563
1980 3.35580899
1981 2.70002478
1982 1.64955269
1983 1.71195521
1984 1.6044679
1985 1.39901359
1986 0.58802255
1987 0.71150857
1988 0.51461758
1989 0.70614536
1990 0.90771832
1991 0.55680424
1992 0.5633533
1993 0.53228697
1994 0.46349511
1995 0.45953487
1996 0.59807842
1997 0.50733832
1998 0.27329806
1999 0.43630169
2000 0.82511616
2001 0.60562915
2002 0.5820577
2003 0.66488393
2004 0.82273196
2005 1.11052462
2006 1.219497
2007 1.18877261
2008 1.59229573
2009 0.89736379
2010 1.13111102
2011 1.62970163
2012 1.59466728
2013 1.56078109
2014 1.40325338
2015 0.67200661
2016 0.58952955
2017 0.75191037
2018 1.05071295
2019 0.95318234
2020 0.54601264
2021 0.98373473
2022

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
High income
Records
63
Source