IDA 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 total
Records
63
Source
IDA total | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0.26857161
1972 0.57226912
1973 0.93041516
1974 8.88501538
1975 6.03134423
1976 6.70018965
1977 7.57828974
1978 5.83842752
1979 15.00647973
1980 8.82422154
1981 2.8111623
1982 1.38952836
1983 2.71953535
1984 3.49862912
1985 3.99351487
1986 1.4276139
1987 2.58469519
1988 2.15581452
1989 4.40971581
1990 6.13832219
1991 3.9092635
1992 4.60291666
1993 6.72294642
1994 7.34884086
1995 6.71800358
1996 6.90283321
1997 6.10281386
1998 3.15807963
1999 2.82903242
2000 5.44410863
2001 4.14846576
2002 3.86076891
2003 4.00552233
2004 4.85212209
2005 6.49352155
2006 6.36894446
2007 5.85620777
2008 7.16195217
2009 3.65709262
2010 5.02217349
2011 6.96773391
2012 5.04457636
2013 3.94194667
2014 2.9997384
2015 1.065833
2016 0.78497011
2017 1.40081224
2018 2.14071295
2019 1.90745465
2020 0.95680564
2021 1.75815172
2022

IDA 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 total
Records
63
Source