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"Long term it could be a turning point to deflating American dominance of the most important market in the modern world." The most important market in the mode

by rsync 7y ago

"Long term it could be a turning point to deflating American dominance of the most important market in the modern world." The most important market in the modern world is oil and gas. Global digital ad spending (which is what these software/service stacks are proxies for) will be $327B in 2019. Compare this to $360B for a single oil producer, Saudi Aramco, in 2018. Note that none of the FAANGs are even in the top 10 of this list: https://en.wikipedia.org/wiki/List_of_largest_companies_by_revenue https://en.wikipedia.org/wiki/List_of_largest_companies_by_r... ... and only 2 are in the top 20. And google is not on the list at all. 5 of those top 10 are oil and gas (and it would be 6 if Saudi Aramco were listed).

golfer 7y ago
FAANG comes out on top if you reorder that list by market cap instead of revenue.
adrianN 7y ago
Oil and gas will shrink dramatically over the next few decades, while there are still many people that can't afford fancy technology yet.
- lenkite 7y ago
  Unlikely. There is ever-increasing year-on-year demand for plastic which a product of the Oil and Gas industry. Above 400 million metric of plastic produced every year - and this is growing. Aramco (which parent's comment refers to) just spent 69 billion in taking the majority take in Sabic.
  - adrianN 7y ago
    About half of the oil is used for gasoline, another quarter for heating oil and another ten percent for jet fuel. All of these uses will likely go away completely or be dramatically reduced over the next twenty to thirty years.
    - lenkite 7y ago
      You may be correct on the first two, but I am not sure how the jet fuel use is going to go away - wouldn't it be increasing ? Also, according to IEA, rising use of plastics will drive oil demand https://www.reuters.com/article/us-petrochemicals-iea/rising-use-of-plastics-to-drive-oil-demand-to-2050-iea-idUSKCN1ME2QD https://www.reuters.com/article/us-petrochemicals-iea/rising... Even with a push in sustainability, plastics use is increasing not dropping: https://blogs.platts.com/2019/02/19/consumer-push-sustainability-masks-growth-plastics-demand/ https://blogs.platts.com/2019/02/19/consumer-push-sustainabi...

by rsync 7y ago

golfer 7y ago

FAANG comes out on top if you reorder that list by market cap instead of revenue.

adrianN 7y ago

Oil and gas will shrink dramatically over the next few decades, while there are still many people that can't afford fancy technology yet.

lenkite 7y ago
Unlikely. There is ever-increasing year-on-year demand for plastic which a product of the Oil and Gas industry. Above 400 million metric of plastic produced every year - and this is growing. Aramco (which parent's comment refers to) just spent 69 billion in taking the majority take in Sabic.
- adrianN 7y ago
  About half of the oil is used for gasoline, another quarter for heating oil and another ten percent for jet fuel. All of these uses will likely go away completely or be dramatically reduced over the next twenty to thirty years.
  - lenkite 7y ago
    You may be correct on the first two, but I am not sure how the jet fuel use is going to go away - wouldn't it be increasing ? Also, according to IEA, rising use of plastics will drive oil demand https://www.reuters.com/article/us-petrochemicals-iea/rising-use-of-plastics-to-drive-oil-demand-to-2050-iea-idUSKCN1ME2QD https://www.reuters.com/article/us-petrochemicals-iea/rising... Even with a push in sustainability, plastics use is increasing not dropping: https://blogs.platts.com/2019/02/19/consumer-push-sustainability-masks-growth-plastics-demand/ https://blogs.platts.com/2019/02/19/consumer-push-sustainabi...