France - Oil rents (% of GDP)

Oil rents (% of GDP) in France was 0.007 as of 2019. Its highest value over the past 49 years was 0.041 in 1985, 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 0.002
1974 0.014
1975 0.010
1976 0.011
1977 0.011
1978 0.010
1979 0.021
1980 0.025
1981 0.028
1982 0.017
1983 0.026
1984 0.029
1985 0.041
1986 0.014
1987 0.021
1988 0.015
1989 0.023
1990 0.025
1991 0.011
1992 0.011
1993 0.010
1994 0.009
1995 0.008
1996 0.010
1997 0.007
1998 0.002
1999 0.005
2000 0.012
2001 0.009
2002 0.008
2003 0.007
2004 0.008
2005 0.010
2006 0.012
2007 0.010
2008 0.013
2009 0.007
2010 0.010
2011 0.014
2012 0.013
2013 0.011
2014 0.010
2015 0.005
2016 0.004
2017 0.005
2018 0.008
2019 0.007

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