Venezuela, RB | 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
Bolivarian Republic of Venezuela
Records
63
Source
Venezuela, RB | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 4.79927245
1971 6.78719223
1972 6.69174635
1973 10.28667392
1974 33.34022783
1975 24.02336222
1976 22.15094
1977 15.74383483
1978 15.4615218
1979 35.9005908
1980 33.56693178
1981 24.18057665
1982 12.71850865
1983 16.54769067
1984 18.31914983
1985 15.60946328
1986 7.36089191
1987 15.22459766
1988 9.50512761
1989 20.03335154
1990 28.06002506
1991 15.62867174
1992 14.93509528
1993 14.96993274
1994 15.38660421
1995 14.55595451
1996 23.06487811
1997 17.50464867
1998 8.57137562
1999 12.83876383
2000 20.00115697
2001 14.80978128
2002 18.74804897
2003 21.17795812
2004 23.08903959
2005 28.05387459
2006 26.81865676
2007 21.6186473
2008 22.67378478
2009 9.95847654
2010 11.69289755
2011 23.14501953
2012 17.93878237
2013 16.77713883
2014 11.30215117
2015
2016
2017
2018
2019
2020
2021
2022

Venezuela, RB | 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
Bolivarian Republic of Venezuela
Records
63
Source