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The Oil Market is Bigger Than All Metal Markets Combined

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Chart: The True Size of the Oil Market

Big Oil

The oil market is bigger than all metal markets combined

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Ever since the invention of the internal combustion engine, oil has been one of the most crucial commodities on Earth. Without it, modern transportation as we know it would not be possible. Industries such as aviation, aerospace, automobiles, shipping, and the military would look nothing like they do today.

Of course, as we now know, this has all come with some extreme drawbacks from an environmental perspective. And while new green technology and the lithium revolution will aid in eventually reducing the role of oil in transportation, the fact is we still use 94 million barrels per day of crude worldwide.

As a result, the energy industry continues to have huge amounts of influence on our lives. Special interest groups with a focus on energy have influence on a domestic level. Meanwhile, from a foreign policy angle, countries like Saudi Arabia and Russia wield additional geopolitical and economic power because of their natural resources. It’s even arguable that everything from the Gulf War to the more recent Middle East interventions in Libya, Syria, and Iraq have been at least partially to do with oil.

This week’s chart of the week aims to help explain the influence that oil has on countries and markets by using a very simple perspective: the size of the oil market vs. all metal markets combined.

The True Size of the Oil Market

While the amount of uses in one barrel of oil is quite incredible, we still need a mind-boggling amount of the natural resource each year to sustain consumption.

Oil production per year: 34 billion barrels (incl. other liquids)
Oil market size at current prices: $1.7 trillion per year

To consider how big this actually is, we compare the annual market sizes of all major metals and minerals that are mined throughout the world:

  • Gold: $170 billion
  • Iron: $115 billion
  • Copper: $91 billion
  • Aluminum: $90 billion
  • Zinc: $34 billion
  • Manganese: $30 billion
  • Nickel: $21 billion
  • Silver: $20 billion
  • Other metals: $67 billion (Including platinum, palladium, titanium, tin, moly, uranium, and more)

The total amount works out to $660 billion – just a tiny fraction of the size of the oil market.

Note: we focus on raw, physical materials in this analysis. We leave out things like gold futures, or alloy markets such as steel in this analysis. To get market size numbers, we used the latest price multiplied by 2015 demand in most cases. We left out the smaller markets for many other metals like bismuth, antimony, or rhodium. Exact sources can be seen in the chart itself. Oil market size includes other liquids such as lease condensate.

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Energy

Mapped: The World’s Nuclear Reactor Landscape

Which countries are turning to nuclear energy, and which are turning away? Mapping and breaking down the world’s nuclear reactor landscape.

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The World’s Changing Nuclear Reactor Landscape

View a more detailed version of the above map by clicking here

Following the 2011 Fukushima nuclear disaster in Japan, the most severe nuclear accident since Chernobyl, many nations reiterated their intent to wean off the energy source.

However, this sentiment is anything but universal—in many other regions of the world, nuclear power is still ramping up, and it’s expected to be a key energy source for decades to come.

Using data from the Power Reactor Information System, maintained by the International Atomic Energy Agency, the map above gives a comprehensive look at where nuclear reactors are subsiding, and where future capacity will reside.

Increasing Global Nuclear Use

Despite a dip in total capacity and active reactors last year, nuclear power still generated around 10% of the world’s electricity in 2019.

Global Nuclear Reactors and Electrical Capacity

Part of the increased capacity came as Japan restarted some plants and European countries looked to replace aging reactors. But most of the growth is driven by new reactors coming online in Asia and the Middle East.

China is soon to have more than 50 nuclear reactors, while India is set to become a top-ten producer once construction on new reactors is complete.

Asia's Growing Nuclear Footprint

Decreasing Use in Western Europe and North America

The slight downtrend from 450 operating reactors in 2018 to 443 in 2019 was the result of continued shutdowns in Europe and North America. Home to the majority of the world’s reactors, the two continents also have the oldest reactors, with many being retired.

At the same time, European countries are leading the charge in reducing dependency on the energy source. Germany has pledged to close all nuclear plants by 2022, and Italy has already become the first country to completely shut down their plants.

Despite leading in shutdowns, Europe still emerges as the most nuclear-reliant region for a majority of electricity production and consumption.

world-nuclear-landscape-supplemental-3

In addition, some countries are starting to reassess nuclear energy as a means of fighting climate change. Reactors don’t produce greenhouse gases during operation, and are more efficient (and safer) than wind and solar per unit of electricity.

Facing steep emission reduction requirements, a variety of countries are looking to expand nuclear capacity or to begin planning for their first reactors.

A New Generation of Nuclear Reactors?

For those parties interested in the benefits of nuclear power, past accidents have also led towards a push for innovation in the field. That includes studies of miniature nuclear reactors that are easier to manage, as well as full-size reactors with robust redundancy measures that won’t physically melt down.

Additionally, some reactors are being designed with the intention of utilizing accumulated nuclear waste—a byproduct of nuclear energy and weapon production that often had to be stored indefinitely—as a fuel source.

With some regions aiming to reduce reliance on nuclear power, and others starting to embrace it, the landscape is certain to change.

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Energy

Connected Workers: How Digital Transformation is Shaping Industry’s Future

This graphic explores the role connected workers play in achieving successful digital transformation and identifying new growth opportnities.

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Connected Workers: Shaping the Future of Industry

Digital transformation has upended businesses on a global scale, and no industry is immune from its powerful effects.

New technologies and enhancing customer experience are key drivers for companies investing in digital transformation, but the most important reason for prioritizing this shift is that it will allow them to leverage entirely new opportunities for growth.

However, with the speed of digital transformation accelerating at a furious pace, companies need to quickly adapt their working environment to keep up. This graphic from mCloud unearths the origins of the connected worker, and explores the potential applications of connected devices across industries.

The Rise of the Connected Worker

The mass adoption of smart devices has sparked a new wave of remote work. This type of working arrangement is estimated to inject $441 billion into the global economy every year, and save 2.5 million metric tonnes of CO2 by 2029—the equivalent of 1,280 flights between New York and London.

However, flexible or remote working looks different depending on the industry. For example, in the context of business services such as engineering or manufacturing, employees who carry out different tasks remotely using digital technologies are known as connected workers.

The term is not a one-size-fits-all, as there are many different types of connected workers with different roles, such as operators, field workers, engineers, and even executives. But regardless of an individual’s title, every connected worker plays a crucial role in achieving digital transformation.

Real Time Data, Real Time Benefits

When workers are connected to assets in real time, they can make better, more informed decisions—ultimately becoming a more efficient workforce overall. As a result, industries could unlock a wealth of benefits, such as:

  • Reducing human error
  • Increasing productivity
  • Reducing dangerous incidents
  • Saving time and money
  • Monitoring assets 24/7

While connected workers can enhance the potential of industries, the tools they use to achieve these benefits are crucial to their success.

Connected Worker Technologies

A connected device has the ability to connect with other devices and systems through the internet. The connected worker device market is set for rapid growth over the next two decades, reaching $4.3 billion by 2039. Industries such as oil and gas, chemical production, and construction lead the way in the adoption of connected worker technologies, which include:

  • Platforms: Hardware or software that uses artificial intelligence and data to allow engineers to create bespoke applications and control manufacturing processes remotely.
  • Interfaces: Technologies such as 3D digital twins enable peer-to-peer information sharing. They also create an immersive reflection of surroundings that would have otherwise been inaccessible by workers, such as wind turbine blades.
  • Smart sensors and IoT devices: Sensors that monitor assets provide a more holistic overview of industrial processes in real time and prevent dangerous incidents.
  • Cloud and edge computing: Using the cloud allows workers to communicate with each other and manage shared data more efficiently.

Over time, connected devices are getting smarter and expanding their capabilities. Moreover, devices such as wearables are becoming more discreet than ever, and can even be embedded into personal protective equipment to gather data while remaining unobtrusive.

Real World Applications

With seemingly endless potential, these devices have the ability to provide game changing solutions to ongoing challenges across dozens of industries.

  • Building Maintenance and Management
    Facility managers can access real time information and connect with maintenance workers on site to resolve issues quickly. Building personnel can also access documentation and remote help through connected technologies.
  • Task Management
    Operators in industrial settings such as mining can control activities in remote locations. They can also enable field personnel to connect with experts in other locations.
  • Communications Platform
    Cloud-based communication platforms can provide healthcare practitioners with a tool to connect with the patient, the patient’s family and emergency care personnel.

By harnessing the power of artificial intelligence, the Internet of Things, and analytics, connected workers can continue to revolutionize businesses and industries across the globe.

Towards a More Connected Future

As companies navigate the challenges of COVID-19, implementing connected worker technologies and creating a data-driven work environment may quickly become an increasingly important priority.

Not only is digital transformation important for leveraging new growth opportunities to scale, it may be crucial for determining the future of certain businesses and industries.

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