Energy Shift
Visualized: How the Oil and Gas Industry Spends Its Profits
How the Oil and Gas Industry Spends Its Profits
2022 was a highly profitable year for the oil and gas industry. Due to Russia’s invasion of Ukraine, energy prices skyrocketed, and the industry amassed an astounding $4 trillion in profits.
So, how were these 2022 profits spent? And how does this spending compare to previous years?
To find out, we’ve visualized the distribution of cash spending by the global oil and gas industry between 2015 and 2022, according to the International Energy Agency’s 2023 World Energy Investment report.
Distribution of Cash Spending: 2015-2022
Unlike previous years, a majority of the oil and gas industry’s 2022 profits were channeled towards enhancing shareholder dividends and reducing debt burdens.
This means that capital expenditure for oil and gas production dropped below 50% of total spending for the first time in more than 15 years.
Distribution of Spending | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
---|---|---|---|---|---|---|---|---|
Oil and gas capital expenditure | 87% | 93% | 82% | 72% | 71% | 73% | 60% | 47% |
Clean energy capital expenditure | 0% | 0% | 0% | 0% | 0% | 0% | 1% | 1% |
Dividends* | 13% | 7% | 18% | 28% | 29% | 27% | 26% | 39% |
Net debt repayment | 0% | 0% | 0% | 0% | 0% | 0% | 13% | 13% |
TOTAL | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
*Dividends include share buybacks, exclude share issuances.
Shareholder pressures for greater returns, as well as long-term demand and cost concerns, were primary reasons for the reshaping of this spending.
Conversely, even with the continued demands for the sector to contribute more to addressing climate change, cash flow allocated to clean energy remained around 1% of spending.
Subnational Spending Trends
The International Energy Agency (IEA) predicts that expenditure on new fossil fuel supply will experience a 6% increase in 2023, reaching a total of $950 billion.
While this refers to global numbers, noteworthy disparities do exist based on geographical location and different types of oil and gas companies, including:
- Most of the growth in new supply expenditure is expected to come from Middle Eastern national oil companies. Based on their announced spending, they are the only subset in the industry that is planning to spend significantly more in 2023 than in 2022.
- Real spending on oil and gas supply continues to fall short of 2019 levels for a majority of North American and European companies.
- While only making up 1% of total spending in 2022, investment in carbon capture, utilization, and storage (CCUS), hydrogen, and bioenergy are growing in the industry. Most of these projects are led by major private players, along with national oil companies from Europe and North America.
What About the Energy Transition?
While there are shifts in the oil and gas industry’s spending, it’s important to note that current capital expenditures in fossil fuels are more than double what is required to achieve the IEA’s 2050 Net Zero Emissions Scenario.
Therefore, more meaningful and substantial shifts in spending are necessary to bring down the emissions of the sector.
Energy Shift
Visualizing the Decline of Copper Usage in EVs
Copper content in EVs has steadily decreased over the past decade, even as overall copper demand rises due to the increasing adoption of EVs.
Visualizing the Decline of Copper Usage in EVs
Copper intensity in passenger battery electric vehicles (BEVs) has steadily decreased over the last decade, driven by numerous technological advancements alongside increasing usage of alternative materials such as aluminum.
In this graphic, we visualize the evolution of copper demand in various subcomponents of passenger battery electric vehicles (BEVs) from 2015 to 2030F, along with total global copper demand driven by EVs for the same period. This data comes exclusively from Benchmark Mineral Intelligence.
Copper Intensity Per Car
According to Benchmark Mineral Intelligence, the copper intensity per vehicle is expected to decline by almost 38 kg, from 99 kg in 2015 to 62 kg by 2030.
Year | Wiring | Motor | Copper Foil | Busbar | Auxiliary Motor | Charging Cable | Total |
---|---|---|---|---|---|---|---|
2015 | 30 | 8 | 41.26 | 13.23 | 2.87 | 3.96 | 99.32 |
2016 | 29 | 8 | 38.68 | 13.37 | 2.85 | 3.92 | 95.82 |
2017 | 28 | 7 | 32.67 | 12.72 | 2.84 | 3.90 | 87.13 |
2018 | 27 | 7 | 26.39 | 11.87 | 2.82 | 3.88 | 78.96 |
2019 | 26 | 7 | 28.00 | 10.85 | 2.78 | 3.82 | 78.45 |
2020 | 25 | 7 | 24.71 | 10.24 | 2.73 | 3.76 | 73.44 |
2021 | 24 | 6 | 25.27 | 9.29 | 2.69 | 3.70 | 70.95 |
2022 | 23 | 7 | 28.44 | 8.56 | 2.65 | 3.64 | 73.29 |
2023 | 22 | 7 | 29.87 | 8.12 | 2.61 | 3.58 | 73.18 |
2024F | 21 | 7 | 27.73 | 7.67 | 2.56 | 3.52 | 69.48 |
2025F | 20 | 7 | 27.79 | 7.19 | 2.52 | 2.51 | 67.01 |
2026F | 20 | 7 | 27.78 | 6.63 | 2.48 | 3.41 | 67.30 |
2027F | 19 | 8 | 27.55 | 6.15 | 2.44 | 3.35 | 66.49 |
2028F | 18 | 8 | 26.77 | 5.70 | 2.40 | 3.30 | 64.17 |
2029F | 18 | 8 | 26.17 | 5.51 | 2.39 | 3.28 | 63.35 |
2030F | 17 | 8 | 25.63 | 5.44 | 2.37 | 3.26 | 61.70 |
One of the most significant factors driving this decline is thrifting, where engineers and manufacturers continuously improve the efficiency and performance of various components, leading to reduced copper usage. A key example of this is in battery production, where the thickness of copper foil used in battery anodes has significantly decreased.
In 2015, Benchmark estimated copper foil usage was just over 41 kg per vehicle (at an average thickness of 10 microns), but by 2030, it is projected to fall to 26 kg as manufacturers continue to adopt thinner foils.
Similarly, automotive wiring systems have become more localized, with advances in high-voltage wiring and modular integration allowing for reduced copper content in wiring harnesses.
Copper used in wiring has dropped from 30 kg per vehicle in 2015 to a projected 17 kg by 2030.
Newer, more compact power electronics and improved thermal management in motors and charging cables have also contributed to the reduction in copper usage.
Substitution has also played a role, with alternatives such as aluminum increasingly being used in components like busbars, wiring harnesses, and charging cable applications.
Aluminum’s lighter weight and lower cost have made it a practical alternative to copper in specific applications, though the additional space required to achieve the same level of conductivity can limit its use in certain cases.
Benchmark estimates that copper used in automotive wire harnesses has declined by 30% between 2015 and 2024.
The Road Ahead
Despite reductions in per-vehicle copper usage, the outlook for copper demand from the EV sector remains strong due to the sector’s growth.
Year | EV Sector Copper Demand (tonnes) |
---|---|
2015 | 56K |
2016 | 82K |
2017 | 111K |
2018 | 166K |
2019 | 179K |
2020 | 237K |
2021 | 447K |
2022 | 696K |
2023 | 902K |
2024F | 1.0M |
2025F | 1.2M |
2026F | 1.5M |
2027F | 1.7M |
2028F | 2.0M |
2029F | 2.2M |
2030F | 2.5M |
Benchmark’s analysis indicates that by 2030, copper demand driven by EVs alone will exceed 2.5 million tonnes, securing copper’s critical role in the transition to a low-carbon future.
Energy Shift
Visualizing the Rise in Global Coal Consumption
China remains the largest coal consumer, making up 56% of the global total.
Visualizing the Rise in Global Coal Consumption
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.
Despite efforts to decarbonize the economy, global coal consumption surpassed 164 exajoules for the first time in 2023. The fossil fuel still accounts for 26% of the world’s total energy consumption.
In this graphic, we show global coal consumption by region from 1965 to 2023, based on data from the Energy Institute.
China Leads in Coal Consumption
China is by far the largest consumer of coal, accounting for 56% of the global total, with 91.94 exajoules in 2023.
It is followed by India, with 21.98 exajoules, and the U.S., with 8.20 exajoules. In 2023, India exceeded the combined consumption of Europe and North America for the first time.
Regionally, North America and Europe have seen a decline in coal consumption since the 1990s, while the Asia-Pacific region experienced a surge in demand during the same period.
Year | Asia Pacific (Exajoules) | North America | Europe | Rest of the World | Total World |
---|---|---|---|---|---|
2013 | 114.14 | 19.48 | 15.86 | 11.47 | 160.95 |
2014 | 115.74 | 19.39 | 14.88 | 11.68 | 161.62 |
2015 | 115.00 | 16.89 | 14.24 | 11.11 | 157.25 |
2016 | 113.21 | 15.55 | 13.74 | 11.35 | 153.85 |
2017 | 115.67 | 15.30 | 13.29 | 11.23 | 155.50 |
2018 | 119.05 | 14.50 | 12.98 | 11.34 | 157.87 |
2019 | 121.94 | 12.49 | 11.06 | 11.45 | 156.95 |
2020 | 121.91 | 9.97 | 9.57 | 10.82 | 152.27 |
2021 | 127.75 | 11.24 | 10.44 | 11.12 | 160.56 |
2022 | 129.80 | 10.54 | 10.02 | 11.18 | 161.53 |
2023 | 135.70 | 8.83 | 8.39 | 11.11 | 164.03 |
Coal Production on the Rise
In addition to consumption, global coal production also reached its highest-ever level in 2023, at 179 exajoules.
The Asia-Pacific region accounted for nearly 80% of global output, with activity concentrated in Australia, China, India, and Indonesia.
China alone was responsible for just over half of total global production.
Learn More on the Voronoi App
If you want to learn more about fossil fuel consumption, check out this graphic showing the top 12 countries by fossil fuel consumption in 2023.
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