Netherlands - Oil rents (% of GDP)

Oil rents (% of GDP) in Netherlands was 0.022 as of 2019. Its highest value over the past 49 years was 0.239 in 1985, while its lowest value was 0.003 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 0.003
1971 0.005
1972 0.005
1973 0.010
1974 0.064
1975 0.050
1976 0.049
1977 0.046
1978 0.039
1979 0.078
1980 0.086
1981 0.085
1982 0.068
1983 0.145
1984 0.188
1985 0.239
1986 0.086
1987 0.109
1988 0.067
1989 0.092
1990 0.112
1991 0.054
1992 0.037
1993 0.035
1994 0.047
1995 0.037
1996 0.044
1997 0.035
1998 0.008
1999 0.018
2000 0.040
2001 0.026
2002 0.045
2003 0.044
2004 0.048
2005 0.049
2006 0.046
2007 0.066
2008 0.070
2009 0.030
2010 0.035
2011 0.056
2012 0.055
2013 0.050
2014 0.059
2015 0.027
2016 0.014
2017 0.020
2018 0.029
2019 0.022

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