Skip to main content

THE OIL MARKET IS BIGGER THAN ALL METAL MARKETS COMBINED

Big Oil
THE OIL MARKET IS BIGGER THAN ALL METAL MARKETS COMBINED

Chart: The True Size of the Oil Market


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.

Comments

Popular posts from this blog

Big Business Giants From Microsoft to J.P. Morgan Are Getting Behind Ethereum

ETHEREUM

Big Business Giants From Microsoft to J.P. Morgan Are Getting Behind Ethereum



Thirty big banks, tech giants, and other organizations—including J.P. Morgan Chase, Microsoft, and Intel—are uniting to build business-ready versions of the software behind Ethereum, a decentralized computing network based on digital currency.


The group, called the Enterprise Ethereum Alliance, is set to debut at a summit in Brooklyn, New York on Tuesday, during which members J.P. Morgan Chase (JPM, -1.20%) and Banco Santander (SAN, +0.16%) are scheduled to demonstrate a pilot of the financial technology as it exists today. The pair plan to show off a "spot trade" on the foreign exchange market for global currencies using an adaptation of Ethereum as the settlement layer.

Ethereum uses a blockchain, often referred to as a distributed ledger, to record and execute transactions without the need of a middleman. Instead of a centrally managed database, copies of the cryptographic balance book…

The first investor in Snapchat thinks each bitcoin could realistically be worth $500,000 by 2030 — Here's how

Bitcoin has been the top-performing currency in the world in six of the past seven years, climbing from zero to a value of about $1,190.

But the cryptocurrency isn't anywhere close to its potential, according to Jeremy Liew, the first investor in Snapchat, and Blockchain CEO and cofounder Peter Smith. In a presentation sent to Business Insider, the duo laid out their case for why it's reasonable for bitcoin to explode to $500,000 by 2030.



Their argument is based on increased interest in bitcoin, thanks to:

Bitcoin-based remittances

Remittance transfers, or electronic money transfers to foreign countries, have almost doubled over the past 15 years to 0.76% of GDP, data from The World Bank shows.

"Expats sending money home have found in Bitcoin an inexpensive alternative, and we assume that the percentage of Bitcoin-based remittances will sharply increase with greater Bitcoin awareness," the two say.

Uncertainty

Liew and Smith said increased political uncertainty i…

My Favorite Strategy For Shorting Shares

This article contains a quick introduction to shorting shares then presents my favorite strategy for finding shorts. I then put this strategy to the test on historical data before finishing up with some final tips.
Shorting Stocks Explained


Short selling is the process of selling a stock that you do not already own.


The principle reason why you would want to do this is because you think the company is overvalued and you want to make a bet that it will decline in value in the future. You may also want to short a stock in order to hedge your other long positions.


While it can sound confusing to sell something that isn’t yours, just remember that short selling is part of a free, capitalist market and is made possible by brokers, who act as intermediaries between investors and the exchange.


When you want to short a stock, your broker will lend you the shares, either from it’s own inventory or one of it’s partners.


Once you borrow the shares from your broker you can sell them at the market pric…