Brunei - Oil rents (% of GDP)

Oil rents (% of GDP) in Brunei was 11.62 as of 2019. Its highest value over the past 49 years was 55.17 in 1974, while its lowest value was 2.45 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 2.45
1971 6.84
1972 16.03
1973 27.43
1974 55.17
1975 51.80
1976 53.57
1977 51.50
1978 48.01
1980 50.67
1981 32.98
1982 21.04
1983 28.71
1984 28.50
1985 28.63
1986 21.64
1987 23.05
1988 17.71
1989 22.06
1990 28.87
1991 16.68
1992 16.67
1993 16.59
1994 15.21
1995 13.93
1996 15.59
1997 13.93
1998 8.90
1999 14.91
2000 24.02
2001 18.65
2002 15.48
2003 16.72
2004 21.23
2005 27.96
2006 29.30
2007 21.61
2008 22.73
2009 15.27
2010 17.75
2011 23.90
2012 20.88
2013 17.01
2014 14.85
2015 7.71
2016 6.85
2017 8.81
2018 11.66
2019 11.62

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