Final answer:
Data is often compared to oil because it is a valuable resource that can drive economic activity and wealth. The comparison emphasizes the importance of data in driving business decisions and its potential to fuel technologies and be monetized, similarly to how oil is used.
Step-by-step explanation:
When people compare data to oil, they are referring to option 2: Data can be monetarily valuable. Just as oil has been a critical resource that has driven economic activity and has been a source of wealth, so too has data become a critical, valuable resource in the information age.
Data is key to driving many business decisions, from how farmers determine planting and harvest times to how companies design and market products. Like the value of technology that overshadows the raw materials in products such as computers, the intrinsic value of data goes beyond its physical form, contributing to innovation and strategic advantage. Furthermore, the capacity of data to fuel algorithmic technologies and its potential to be monetized are similar to the ways in which oil is used to power vehicles and generate income.
Additionally, like the limitations and consequences of extracting and processing oil, obtaining and using data comes with its own set of challenges. It requires technologies and methods to collect, store, manage, and analyze effectively. This modern-day 'data rush', much like the historical oil rushes, attests to the transformative power and value of this resource.