Latin America & the Caribbean (IDA & IBRD countries) | 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
Latin America & the Caribbean (IDA & IBRD countries)
Records
63
Source
Latin America & the Caribbean (IDA & IBRD countries) | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 1.01412924
1971 1.23445099
1972 1.22148727
1973 1.88363456
1974 7.75212173
1975 6.0765205
1976 6.13680847
1977 4.99406117
1978 4.90841765
1979 11.30074551
1980 11.05917462
1981 8.27502495
1982 6.22483507
1983 7.63065583
1984 7.41180312
1985 6.94804538
1986 3.28482411
1987 5.18191292
1988 3.50804423
1989 3.35571501
1990 4.15590435
1991 2.23893399
1992 2.24081177
1993 1.89388586
1994 1.64026872
1995 1.84732578
1996 2.33438242
1997 1.96723457
1998 1.06870283
1999 2.00839804
2000 3.32562507
2001 2.58178436
2002 3.0545619
2003 3.31286758
2004 3.90040052
2005 4.95102242
2006 5.10838222
2007 4.37614616
2008 5.14090433
2009 2.65091919
2010 3.03899138
2011 4.27436698
2012 4.02457437
2013 3.58019568
2014 3.20532479
2015 1.11829719
2016 0.8632833
2017 1.12307164
2018 1.78088725
2019 1.47830724
2020 0.8369078
2021 1.97739753
2022

Latin America & the Caribbean (IDA & IBRD countries) | 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
Latin America & the Caribbean (IDA & IBRD countries)
Records
63
Source