Upper 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
Upper middle income
Records
63
Source
Upper middle income | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.38855217
1971 0.44270459
1972 0.52663034
1973 0.94136641
1974 4.8374558
1975 4.70040523
1976 5.4936728
1977 5.56785038
1978 5.68835657
1979 8.75340641
1980 11.40361658
1981 7.52385177
1982 5.42067642
1983 6.23254431
1984 6.27392916
1985 6.16558136
1986 3.06893557
1987 4.6814429
1988 3.89502367
1989 4.89283248
1990 5.81167832
1991 2.79846814
1992 2.74567552
1993 2.36403757
1994 1.97412252
1995 2.01297365
1996 2.45823639
1997 2.09178521
1998 1.13071761
1999 2.24123456
2000 4.01863807
2001 3.00348846
2002 3.12359169
2003 3.2159917
2004 3.96113666
2005 5.10245539
2006 5.17958411
2007 4.54931245
2008 5.40025619
2009 2.96752466
2010 3.26311953
2011 4.06299024
2012 3.9054097
2013 3.34104743
2014 2.95397376
2015 1.37040609
2016 1.09536703
2017 1.46244335
2018 2.10457229
2019 1.7753216
2020 0.85024019
2021 1.79352544
2022

Upper 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
Upper middle income
Records
63
Source