Tele-connection of global crude oil network: Comparisons between direct trade and embodied flows

Abstract

Crude oil is one of the most widely used energy sources and the most important commodities in the global economy. To illustrate the gap between crude oil trade and consumption, this study calculated the internal intensity of global crude oil tele-connection, compared the differences of topological structures, and tested the energy risks between the direct oil trade network and embodied oil transfer network. Based on the results, evident differences were identified between the direct trade network and embodied transfer network. The direct trade network had less relational links but a higher internal intensity level, while the embodied oil transfer network had more relational links but a lower internal intensity level. For the regional components, the crude-oil-rich and highly industrialized countries/regions occupied the core circle in the direct oil trade network, whereas the highly industrialized countries/regions occupied the core position in the embodied oil transfer network. When tested, node countries in the core circle of the trade network were less sensitive under deliberate attack, but the direct oil trade network was easier to collapse than the embodied transfer network. With the comparisons between direct trade and embodied transfers, this work provides a more systematic perspective on the tele-connected crude oil networks.