Lower 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
Lower middle income
Records
63
Source
Lower middle income | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 1.60852804
1971 1.73125642
1972 2.32336781
1973 3.24613514
1974 12.50453416
1975 10.02498332
1976 10.73846148
1977 10.52418866
1978 9.68885236
1979 15.58388897
1980 12.39008204
1981 7.86283425
1982 6.17290897
1983 6.79348653
1984 7.1682372
1985 6.85983004
1986 2.8369924
1987 4.14817712
1988 3.41585761
1989 5.69336812
1990 7.20854703
1991 3.29963489
1992 3.36255319
1993 5.8458718
1994 4.95028768
1995 5.19075596
1996 5.90428247
1997 5.17464289
1998 2.89854656
1999 3.49739387
2000 6.22131749
2001 4.72082482
2002 4.54750039
2003 4.87353628
2004 6.00167643
2005 7.95577735
2006 8.08702847
2007 7.30433132
2008 9.01933346
2009 4.75766257
2010 5.67975891
2011 7.20770981
2012 6.33228666
2013 5.5251925
2014 4.64308135
2015 2.13373406
2016 1.79618163
2017 2.50779334
2018 3.35513828
2019 2.45419465
2020 1.31598566
2021 2.31539917
2022

Lower 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
Lower middle income
Records
63
Source