Kuwait | 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
State of Kuwait
Records
63
Source
Kuwait | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 34.89110397
1971 36.73027505
1972 41.98535616
1973 47.67117511
1974 70.81003816
1975 62.08633423
1976 63.77486987
1977 58.73519196
1978 59.25386203
1979
1980 67.04856554
1981 46.23410641
1982 32.48244548
1983 42.10709484
1984 43.85360513
1985 34.88460398
1986 25.95759619
1987 23.61871066
1988 26.14688448
1989 33.56879103
1990 38.87029848
1991 13.21757556
1992 28.13441385
1993 39.3714072
1994 36.60593806
1995 36.22706402
1996 40.13640911
1997 38.39291859
1998 27.92703907
1999 33.88053247
2000 50.28923812
2001 42.79801431
2002 37.20037162
2003 39.8168513
2004 46.11283364
2005 53.31648346
2006 51.03945408
2007 48.15500157
2008 52.89129356
2009 38.85485315
2010 48.19060693
2011 58.36892958
2012 57.41296373
2013 55.55793945
2014 53.23956915
2015 36.44829944
2016 31.67321062
2017 36.00909082
2018 44.04906714
2019 38.65534731
2020 27.58168914
2021
2022

Kuwait | 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
State of Kuwait
Records
63
Source