Oman - Oil rents (% of GDP)

Oil rents (% of GDP) in Oman was 24.88 as of 2019. Its highest value over the past 49 years was 80.88 in 1979, while its lowest value was 18.28 in 2016.

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 50.23
1971 50.18
1972 48.29
1973 55.63
1974 66.10
1975 59.90
1976 57.92
1977 53.98
1978 50.71
1979 80.88
1980 56.52
1981 47.67
1982 37.38
1983 42.11
1984 39.81
1985 40.58
1986 31.20
1987 42.17
1988 34.58
1989 45.19
1990 51.63
1991 33.30
1992 33.22
1993 32.81
1994 30.17
1995 32.40
1996 37.77
1997 33.31
1998 23.43
1999 32.01
2000 45.55
2001 37.36
2002 34.48
2003 34.30
2004 37.75
2005 44.12
2006 41.86
2007 38.27
2008 38.00
2009 29.97
2010 37.21
2011 46.25
2012 42.85
2013 41.04
2014 36.09
2015 21.41
2016 18.28
2017 21.78
2018 26.70
2019 24.88

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