IDA & IBRD total | 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
IDA & IBRD total
Records
63
Source
IDA & IBRD total | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 1.01913519
1971 1.1308184
1972 1.38183557
1973 2.04504181
1974 8.74407337
1975 7.4145495
1976 8.14947663
1977 7.85342433
1978 7.4949954
1979 12.25023178
1980 12.23520003
1981 8.04922949
1982 5.88680967
1983 6.70085995
1984 6.84041811
1985 6.61805484
1986 3.02187857
1987 4.51586689
1988 3.75589886
1989 5.18930739
1990 6.28813343
1991 3.03306431
1992 3.03030787
1993 3.26630191
1994 2.93204226
1995 2.90702431
1996 3.42197963
1997 2.93574763
1998 1.62025179
1999 2.63306537
2000 4.66343305
2001 3.51973691
2002 3.57548123
2003 3.70717308
2004 4.52557929
2005 5.85446655
2006 5.93026501
2007 5.22571934
2008 6.25101909
2009 3.38758017
2010 3.85918929
2011 4.88867093
2012 4.46573746
2013 3.82868089
2014 3.32226871
2015 1.47621132
2016 1.20015759
2017 1.62140547
2018 2.27291501
2019 1.84434517
2020 0.91496737
2021 1.82786807
2022

IDA & IBRD total | 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
IDA & IBRD total
Records
63
Source