ABSTRACT
This chapter provides an assessment of the total oil revenue received and an exploration of the factors determining the revenue. It presents a discussion of some of the considerations relevant to achieving an optimum level of oil revenue. The various Emirates differ in such matters as receipts per barrel, the share of total oil revenue and the per capita income from oil revenues. The factors determining the Emirates’ oil revenues fall under three broad headings: level of crude oil production; cost of production; and financial terms applicable. The cost of producing any commodity is an important factor in determining the future level of production of that commodity. The Middle East produces oil at a relatively low cost when compared with producers outside the region and consequently its price contains a certain element of ‘economic rent’. The Emirates’ oil revenues have been greatly affected by the quantity of crude oil produced.
