IDA only | 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 only
Records
63
Source
IDA only | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0.16526524
1972 0.2480173
1973 0.30718106
1974 1.23390829
1975 1.352411
1976 1.75145182
1977 1.57518171
1978 1.49697675
1979 2.77732723
1980 2.29682068
1981 1.86686099
1982 1.48757956
1983 1.60219786
1984 1.53795624
1985 1.44980527
1986 0.58771918
1987 0.95296957
1988 0.84388303
1989 1.39141957
1990 3.37294514
1991 2.18131391
1992 2.68116086
1993 3.31795491
1994 5.79153635
1995 3.44598808
1996 2.31991806
1997 1.93975193
1998 1.17489937
1999 1.88749451
2000 3.23760318
2001 2.69929362
2002 2.75041754
2003 2.85964886
2004 3.23226323
2005 4.20159855
2006 4.33130517
2007 3.94773795
2008 5.26931588
2009 2.69818317
2010 3.40908234
2011 4.93757992
2012 2.25938086
2013 1.75102855
2014 1.38765987
2015 0.43890303
2016 0.23866599
2017 0.42159227
2018 0.65177249
2019 0.53546853
2020 0.32504735
2021 0.62137009
2022

IDA only | 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 only
Records
63
Source