Bangladesh - Oil rents (% of GDP)

Oil rents (% of GDP) in Bangladesh was 0.015 as of 2019. Its highest value over the past 49 years was 0.210 in 2008, while its lowest value was 0.001 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:

Year Value
1970 0.001
1971 0.001
1972 0.001
1973 0.001
1974 0.002
1975 0.003
1976 0.006
1977 0.006
1978 0.003
1979 0.004
1980 0.003
1981 0.002
1982 0.002
1983 0.010
1984 0.016
1985 0.016
1986 0.008
1987 0.011
1988 0.008
1989 0.011
1990 0.021
1991 0.012
1992 0.015
1993 0.015
1994 0.018
1995 0.014
1996 0.019
1997 0.019
1998 0.009
1999 0.016
2000 0.031
2001 0.051
2002 0.083
2003 0.074
2004 0.089
2005 0.087
2006 0.105
2007 0.150
2008 0.210
2009 0.086
2010 0.109
2011 0.146
2012 0.164
2013 0.134
2014 0.094
2015 0.029
2016 0.014
2017 0.017
2018 0.026
2019 0.015

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