Venezuela, RB | Natural gas rents (% of GDP)

Natural gas rents are the difference between the value of natural gas 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
Bolivarian Republic of Venezuela
Records
63
Source
Venezuela, RB | Natural gas rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.0221371
1971 0.03476576
1972 0.0347966
1973 0.03331489
1974 0.16602657
1975 0.27786829
1976 0.25062144
1977 0.01759005
1978 0.03811858
1979 0.23927067
1980 0.50239708
1981 0.26905701
1982 0.0593193
1983 0.32151288
1984 0.45849528
1985 0.43084103
1986 0.37491498
1987 0.35219435
1988 0.24112596
1989 0.45030922
1990 0.58952728
1991 0.44577014
1992 0.35249734
1993 0.45893243
1994 0.43072144
1995 0.30133533
1996 0.38528572
1997 0.32104416
1998 0.23912573
1999 0.28396681
2000 0.4500429
2001 0.39389597
2002 0.485478
2003 0.3822259
2004 0.28206131
2005 0.36036592
2006 0.41538097
2007 0.4046449
2008 0.29964106
2009 0.30135741
2010 0.19326971
2011 0.54238815
2012 0.50162954
2013 0.54225625
2014 0.37775959
2015
2016
2017
2018
2019
2020
2021
2022

Venezuela, RB | Natural gas rents (% of GDP)

Natural gas rents are the difference between the value of natural gas 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
Bolivarian Republic of Venezuela
Records
63
Source