Iran, Islamic Rep. | 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
Islamic Republic of Iran
Records
63
Source
Iran, Islamic Rep. | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 11.73398394
1971 14.82615941
1972 16.72527367
1973 18.56894037
1974 47.36014063
1975 37.26624982
1976 33.27295754
1977 29.66191052
1978 31.76534218
1979 36.27122459
1980 34.06029677
1981 26.95726026
1982 19.78826859
1983 15.93317884
1984 14.83477587
1985 13.01116005
1986 5.32618285
1987 11.71657526
1988 11.05340117
1989 17.70189638
1990 23.29123603
1991
1992
1993 29.38532822
1994 24.21902164
1995 19.30405858
1996 19.66856146
1997 18.04369802
1998 11.64921076
1999 16.7896155
2000 30.66377467
2001 21.48821685
2002 20.44374146
2003 22.04491744
2004 25.19900204
2005 31.60767626
2006 31.55820381
2007 26.12524012
2008 30.5659739
2009 17.5512588
2010 20.22483635
2011 22.35145892
2012 18.41207234
2013 21.25656655
2014 21.23537583
2015 12.26635274
2016 10.88950315
2017 14.62043997
2018 27.66464716
2019 20.07804905
2020 13.27334954
2021 18.26589809
2022

Iran, Islamic Rep. | 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
Islamic Republic of Iran
Records
63
Source