World | 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
World
Records
63
Source
World | Oil rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.37650143
1971 0.43900245
1972 0.51690007
1973 0.67157864
1974 2.88215119
1975 2.49601128
1976 2.74841822
1977 2.68433639
1978 2.36939865
1979 4.21490273
1980 4.80137591
1981 3.64428147
1982 2.38296187
1983 2.58684505
1984 2.50716902
1985 2.2682481
1986 0.93861279
1987 1.2354588
1988 1.02978499
1989 1.47970738
1990 1.86649199
1991 0.96012393
1992 0.9586443
1993 1.01272159
1994 0.89236177
1995 0.894138
1996 1.13233682
1997 0.99596506
1998 0.53976902
1999 0.83625278
2000 1.56457649
2001 1.17706094
2002 1.1579598
2003 1.2515107
2004 1.57729465
2005 2.17615738
2006 2.37898338
2007 2.28171439
2008 2.97256856
2009 1.65175825
2010 2.04597237
2011 2.78538321
2012 2.65313084
2013 2.42442822
2014 2.14154267
2015 0.97932582
2016 0.82187433
2017 1.0925365
2018 1.52991229
2019 1.30751315
2020 0.6930575
2021 1.32919189
2022

World | 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
World
Records
63
Source