Low & middle income | 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
Low & middle income
Records
63
Source
Low & middle income | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.88083035
1971 0.96080206
1972 1.22944822
1973 1.8220036
1974 7.8827696
1975 6.76907406
1976 7.58405676
1977 7.55889926
1978 7.2061384
1979 11.37609261
1980 11.55961911
1981 7.51812757
1982 5.64792088
1983 6.3471174
1984 6.47516849
1985 6.31949581
1986 2.88623502
1987 4.32893623
1988 3.67823849
1989 5.05282411
1990 6.17832985
1991 2.94938379
1992 2.95309044
1993 3.21912608
1994 2.88519186
1995 2.87105622
1996 3.34288984
1997 2.86512747
1998 1.59824835
1999 2.58671736
2000 4.58676886
2001 3.46686582
2002 3.52534082
2003 3.68334214
2004 4.51011277
2005 5.84013331
2006 5.9182789
2007 5.25005835
2008 6.29710642
2009 3.42131388
2010 3.87691909
2011 4.85121128
2012 4.43478353
2013 3.7952827
2014 3.30720087
2015 1.52707744
2016 1.24168684
2017 1.67848905
2018 2.35729338
2019 1.91061084
2020 0.94617728
2021 1.89218517
2022
Low & middle income | 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
Low & middle income
Records
63
Source