Energy Shift
Sizing Up: The Oil Market vs Top 10 Metal Markets Combined
The Size of the Oil Market vs Top 10 Metal Markets
While the global economy relies on many commodities, none come close to the massive scale of the oil market.
Besides being the primary energy source for transportation, oil is a key raw material for numerous other industries like plastics, fertilizers, cosmetics, and medicine. As a result, the global physical oil market is astronomical in size and has a significant economic and geopolitical influence, with a few countries dominating global oil production.
The above infographic puts crude oil’s market size into perspective by comparing it to the 10 largest metal markets combined. To calculate market sizes, we used the latest price multiplied by global production in 2022, based on data from TradingEconomics and the United States Geological Survey (USGS).
Note: This analysis focuses on raw and physical materials, excluding derivative markets and alloy materials like steel.
How Big Is the Oil Market?
In 2022, the world produced an average of 80.75 million barrels of oil per day (including condensates). That puts annual crude oil production at around 29.5 billion barrels, with the market size exceeding $2 trillion at current prices.
That figure dwarfs the combined size of the 10 largest metal markets:
Commodity | 2022 Annual Production | Market Size |
---|---|---|
Crude Oil | 29.5 billion barrels | $2.1 trillion |
Iron Ore | 2.6 billion tonnes | $283.4 billion |
Gold | 3,100 tonnes | $195.9 billion |
Copper | 22 million tonnes | $183.3 billion |
Aluminum | 69 million tonnes | $152.6 billion |
Nickel | 3.3 million tonnes | $68.8 billion |
Zinc | 13 million tonnes | $30.9 billion |
Silver | 26,000 tonnes | $19.9 billion |
Molybdenum | 250,000 tonnes | $12.9 billion |
Palladium | 210 tonnes | $9.5 billion |
Lead | 4.5 million tonnes | $9.2 billion |
Based on prices as of June 7, 2023.
The combined market size of the top 10 metal markets amounts to $967 billion, less than half that of the oil market. In fact, even if we added all the remaining smaller raw metal markets, the oil market would still be far bigger.
This also reflects the massive scale of global oil consumption annually, with the resource having a ubiquitous presence in our daily lives.
The Big Picture
While the oil market towers over metal markets, it’s important to recognize that this doesn’t downplay the importance of these commodities.
Metals form a critical building block of the global economy, playing a key role in infrastructure, energy technologies, and more. Meanwhile, precious metals like gold and silver serve as important stores of value.
As the world shifts towards a more sustainable future and away from fossil fuels, it’ll be interesting to see how the markets for oil and other commodities evolve.
Energy Shift
Visualizing Copper Production by Country in 2023
Chile and Peru account for one-third of the world’s copper output.
Visualizing Copper Production by Country in 2023
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Copper is considered an essential metal for the clean energy transition because it is a great conductor of electricity.
As a result, governments around the world have been encouraging the construction of new mines, and mining companies have been seeking new projects and acquiring existing mines to meet the growing demand.
In this graphic, we illustrate global copper production in 2023, based on data from the U.S. Geological Survey, Mineral Commodity Summaries, as of January 2024.
Most Copper Comes from South America
Chile and Peru account for one-third of the world’s copper output.
Country | Region | 2023E Production (Million tonnes) |
---|---|---|
🇨🇱 Chile | South America | 5.0 |
🇵🇪 Peru | South America | 2.6 |
🇨🇩 Congo (Kinshasa) | Africa | 2.5 |
🇨🇳 China | Asia | 1.7 |
🇺🇸 United States | North America | 1.1 |
🇷🇺 Russia | Europe/Asia | 0.9 |
🇦🇺 Australia | Oceania | 0.8 |
🇮🇩 Indonesia | Asia | 0.8 |
🇿🇲 Zambia | Africa | 0.8 |
🇲🇽 Mexico | North America | 0.7 |
🇰🇿 Kazakhstan | Asia | 0.6 |
🇨🇦 Canada | North America | 0.5 |
🇵🇱 Poland | Europe | 0.4 |
🌍 Rest of World | -- | 3.1 |
World total (rounded) | -- | 21.5 |
Chile is also home to the two largest mines in the world, Escondida and Collahuasi.
Meanwhile, African countries have rapidly increased their production. The Democratic Republic of Congo, for example, transitioned from being a secondary copper producer in the late 1990s to becoming the third-largest producer by 2023.
Part of the growth in copper mining in Africa is attributed to high investment from China. Chinese mining companies represent 8% of Africa’s total output in the mining sector.
Within its territory, China has also seen a 277% growth in copper production over the last three decades.
In the U.S., Arizona is the leading copper-producing state, accounting for approximately 70% of domestic output. Copper is also mined in Michigan, Missouri, Montana, Nevada, New Mexico, and Utah.
Energy Shift
Who’s Building the Most Solar Energy?
China’s solar capacity triples USA, nearly doubles EU.
Who’s Building the Most Solar Energy?
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
In 2023, solar energy accounted for three-quarters of renewable capacity additions worldwide. Most of this growth occurred in Asia, the EU, and the U.S., continuing a trend observed over the past decade.
In this graphic, we illustrate the rise in installed solar photovoltaic (PV) capacity in China, the EU, and the U.S. between 2010 and 2022, measured in gigawatts (GW). Bruegel compiled the data..
Chinese Dominance
As of 2022, China’s total installed capacity stands at 393 GW, nearly double that of the EU’s 205 GW and surpassing the USA’s total of 113 GW by more than threefold in absolute terms.
Installed solar capacity (GW) | China | EU27 | U.S. |
---|---|---|---|
2022 | 393.0 | 205.5 | 113.0 |
2021 | 307.0 | 162.7 | 95.4 |
2020 | 254.0 | 136.9 | 76.4 |
2019 | 205.0 | 120.1 | 61.6 |
2018 | 175.3 | 104.0 | 52.0 |
2017 | 130.8 | 96.2 | 43.8 |
2016 | 77.8 | 91.5 | 35.4 |
2015 | 43.6 | 87.7 | 24.2 |
2014 | 28.4 | 83.6 | 18.1 |
2013 | 17.8 | 79.7 | 13.3 |
2012 | 6.7 | 71.1 | 8.6 |
2011 | 3.1 | 53.3 | 5.6 |
2010 | 1.0 | 30.6 | 3.4 |
Since 2017, China has shown a compound annual growth rate (CAGR) of approximately 25% in installed PV capacity, while the USA has seen a CAGR of 21%, and the EU of 16%.
Additionally, China dominates the production of solar power components, currently controlling around 80% of the world’s solar panel supply chain.
In 2022, China’s solar industry employed 2.76 million individuals, with manufacturing roles representing approximately 1.8 million and the remaining 918,000 jobs in construction, installation, and operations and maintenance.
The EU industry employed 648,000 individuals, while the U.S. reached 264,000 jobs.
According to the IEA, China accounts for almost 60% of new renewable capacity expected to become operational globally by 2028.
Despite the phasing out of national subsidies in 2020 and 2021, deployment of solar PV in China is accelerating. The country is expected to reach its national 2030 target for wind and solar PV installations in 2024, six years ahead of schedule.
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