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U.S. Stock Market in 2022: Biggest Energy Winners

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U.S. Stock Market in 2022: Biggest Energy Winners

U.S. Stock Market in 2022: Biggest Energy Winners

It’s been a relatively tough year in the equities market, but, as always, some sectors performed better than others.

2022 was an especially good year for energy companies on the S&P 500, with all companies in the industry finishing the year off in the green while the technology, communication services and consumer cyclical sectors predominantly sported red. 

Let’s take a closer look at the 2022 energy stock market based on Finviz’s S&P 500 Map

The Big Winners

As global energy prices soared in the ongoing aftermath of the Russia-Ukraine conflict, energy companies performed exceptionally well in 2022.

Significant gains were seen in nearly all sub-industries of the industry, with exploration and production leading the way. Midstream corporations lagged relatively behind in terms of year-to-date performances but still closed the year off with more than 30% gains on average. 

Here are the top five gainers from 2022. 

RankCompanyEnergy Sub-Industry2022 Performance
1Occidental Petroleum Corporation (OXY)Oil & Gas Exploration and Production +117%
2Hess Corporation (HES)Oil & Gas Exploration and Production +92%
3Marathon Petroleum Corp (MPC)Oil & Gas Refining and Marketing+82%
4ExxonMobil Corp (XOM)Oil & Gas Integrated+80%
5Schlumberger Limited (SLB) Oil & Gas Equipment & Services+79%

Collectively, the energy sector was the largest contributor to the S&P 500 earning growth in 2022.  

In December 2022, Texas-based ExxonMobil’s market value surpassed that of Tesla for the first time since 2020. On the other hand, Occidental Petroleum Corporation benefitted from Berkshire Hathaway accumulating a $12 billion position in the company throughout the year, eventually owning 20.9% of the stock. Occidental’s valuation more than doubled in the process.

It was a triumphant year in the energy sector, to say the least. Other well-performing industries in the S&P 500 in 2022, though there weren’t many, were healthcare and insurance. 

Looking Ahead to 2023

Even as 2023 predictions paint a gloomy picture for the global economy, the energy sector is expected to keep up its good performance into the new year, though with less volatility predicted in energy prices in comparison to 2022. 

There are a few things to keep an eye on as 2023 kicks off. The ongoing sanctions against Russia in many European countries, and the continent’s subsequent gas crisis, are likely to continue in 2023 as former big importers of Russian gas, such as Germany and Italy, look elsewhere to meet their needs. 

China’s reopening after its current COVID surge is also predicted to affect the energy market, with demand likely surging as the country eases the strict lockdowns currently in place, bringing oil prices up along with it. 

In general, a tighter oil market is predicted in 2023, potentially continuing the trends we saw in 2022.

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Visualizing Global Gold Production in 2023

Gold production in 2023 was led by China, Australia, and Russia, with each outputting over 300 tonnes.

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Graphic breaking down global gold production in 2023

Visualizing Global Gold Production 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.

Over 3,000 tonnes of gold were produced globally in 2023.

In this graphic, we list the world’s leading countries in terms of gold production. These figures come from the latest USGS publication on gold statistics (published January 2024).

China, Australia, and Russia Produced the Most Gold in 2023

China was the top producer in 2023, responsible for over 12% of total global production, followed by Australia and Russia.

CountryRegion2023E Production (tonnes)
🇨🇳 ChinaAsia370
🇦🇺 AustraliaOceania310
🇷🇺 RussiaEurope310
🇨🇦 CanadaNorth America200
🇺🇸 United StatesNorth America170
🇰🇿 KazakhstanAsia130
🇲🇽 MexicoNorth America120
🇮🇩 IndonesiaAsia110
🇿🇦 South AfricaAfrica100
🇺🇿 UzbekistanAsia100
🇬🇭 GhanaAfrica90
🇵🇪 PeruSouth America90
🇧🇷 BrazilSouth America60
🇧🇫 Burkina FasoAfrica60
🇲🇱 MaliAfrica60
🇹🇿 TanzaniaAfrica60
🌍 Rest of World-700

Gold mines in China are primarily concentrated in eastern provinces such as Shandong, Henan, Fujian, and Liaoning. As of January 2024, China’s gold mine reserves stand at an estimated 3,000 tonnes, representing around 5% of the global total of 59,000 tonnes.

In addition to being the top producer, China emerged as the largest buyer of the yellow metal for the year. In fact, the country’s central bank alone bought 225 tonnes of gold in 2023, according the World Gold Council.

Estimated Global Gold Consumption

Most of the gold produced in 2023 was used in jewelry production, while another significant portion was sold as a store of value, such as in gold bars or coins.

  • Jewelry: 46%
  • Central Banks and Institutions: 23%
  • Physical Bars: 16%
  • Official Coins, Medals, and Imitation Coins: 9%
  • Electrical and Electronics: 5%
  • Other: 1%

According to Fitch Solutions, over the medium term (2023-2032), global gold mine production is expected to grow 15%, as high prices encourage investment and output.

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Charted: The Value Gap Between the Gold Price and Gold Miners

While gold prices hit all-time highs, gold mining stocks have lagged far behind.

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Line chart comparing gold price and gold mining stocks since 2000.

Gold Price vs. Gold Mining Stocks

This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of trusted sources.

Although the price of gold has reached new record highs in 2024, gold miners are still far from their 2011 peaks.

In this graphic, we illustrate the evolution of gold prices since 2000 compared to the NYSE Arca Gold BUGS Index (HUI), which consists of the largest and most widely held public gold production companies. The data was compiled by Incrementum AG.

Mining Stocks Lag Far Behind

In April 2024, gold reached a new record high as Federal Reserve Chair Jerome Powell signaled policymakers may delay interest rate cuts until clearer signs of declining inflation materialize.

Additionally, with elections occurring in more than 60 countries in 2024 and ongoing conflicts in Ukraine and Gaza, central banks are continuing to buy gold to strengthen their reserves, creating momentum for the metal.

Traditionally known as a hedge against inflation and a safe haven during times of political and economic uncertainty, gold has climbed over 11% so far this year.

According to Business Insider, gold miners experienced their best performance in a year in March 2024. During that month, the gold mining sector outperformed all other U.S. industries, surpassing even the performance of semiconductor stocks.

Still, physical gold has outperformed shares of gold-mining companies over the past three years by one of the largest margins in decades.

YearGold PriceNYSE Arca Gold BUGS Index (HUI)
2023$2,062.92$243.31
2022$1,824.32$229.75
2021$1,828.60$258.87
2020$1,895.10$299.64
2019$1,523.00$241.94
2018$1,281.65$160.58
2017$1,296.50$192.31
2016$1,151.70$182.31
2015$1,060.20$111.18
2014$1,199.25$164.03
2013$1,201.50$197.70
2012$1,664.00$444.22
2011$1,574.50$498.73
2010$1,410.25$573.32
2009$1,104.00$429.91
2008$865.00$302.41
2007$836.50$409.37
2006$635.70$338.24
2005$513.00$276.90
2004$438.00$215.33
2003$417.25$242.93
2002$342.75$145.12
2001$276.50$65.20
2000$272.65$40.97

Among the largest companies on the NYSE Arca Gold BUGS Index, Colorado-based Newmont has experienced a 24% drop in its share price over the past year. Similarly, Canadian Barrick Gold also saw a decline of 6.5% over the past 12 months.

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