South Asia (IDA & IBRD) | 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
South Asia (IDA & IBRD)
Records
63
Source
South Asia (IDA & IBRD) | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.09143596
1971 0.11384625
1972 0.10145062
1973 0.11350029
1974 0.61201062
1975 0.70055242
1976 0.84928451
1977 0.9353449
1978 0.89898854
1979 2.10730029
1980 0.85343052
1981 1.30075777
1982 1.09946606
1983 1.42045839
1984 1.39745
1985 1.68550195
1986 0.77200923
1987 0.9370748
1988 0.69658142
1989 1.12575852
1990 1.49311249
1991 0.97168441
1992 0.79807028
1993 0.69475818
1994 0.65769447
1995 0.71048763
1996 0.78821005
1997 0.70243766
1998 0.35325984
1999 0.5915131
2000 0.96352339
2001 0.71818833
2002 0.74993392
2003 0.72194491
2004 0.89782377
2005 1.11111019
2006 1.14882502
2007 1.03394155
2008 1.37133531
2009 0.56618957
2010 0.73143421
2011 1.18245517
2012 1.15620588
2013 1.05108449
2014 0.84071524
2015 0.31741672
2016 0.19022991
2017 0.27555382
2018 0.39195161
2019 0.27178094
2020 0.12602056
2021 0.28838784
2022

South Asia (IDA & IBRD) | 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
South Asia (IDA & IBRD)
Records
63
Source