Euro area - Oil rents (% of GDP)

Oil rents (% of GDP) in Euro area was 0.018 as of 2019. Its highest value over the past 49 years was 0.067 in 1985, while its lowest value was 0.002 in 1970.

Definition: Oil rents are the difference between the value of crude oil production at world prices and total costs of production.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

1970
1975
1980
1985
1990
1995
2000
2005
2010
2015
2020
0.000
0.010
0.020
0.030
0.040
0.050
0.060
0.070
0.080
Year Value
1970 0.002
1971 0.002
1972 0.003
1973 0.006
1974 0.042
1975 0.032
1976 0.033
1977 0.029
1978 0.024
1979 0.048
1980 0.055
1981 0.049
1982 0.031
1983 0.057
1984 0.061
1985 0.067
1986 0.021
1987 0.029
1988 0.020
1989 0.029
1990 0.031
1991 0.014
1992 0.013
1993 0.013
1994 0.012
1995 0.011
1996 0.015
1997 0.013
1998 0.003
1999 0.009
2000 0.023
2001 0.016
2002 0.019
2003 0.018
2004 0.021
2005 0.028
2006 0.030
2007 0.030
2008 0.035
2009 0.018
2010 0.028
2011 0.041
2012 0.041
2013 0.037
2014 0.033
2015 0.015
2016 0.010
2017 0.014
2018 0.022
2019 0.018

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.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

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 world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). 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).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP