Let’s take 2 types of hats as an example.
Hat 1 - Was made by a local woman at the market. She bought the wool from a local shop and dyed it herself with onion skins. The wool came from a farm not too far away and was carded and spun by the people who raised the sheep.
Hat 2 - Was made in a large factory from acrylic (plastic wool). The petroleum had to be extracted from the ground, transported to a refinery, refined, processed into little plastic pellets, transported to another place, processed into acrylic wool, transported to another place, spun into a hat, packaged (probably in plastic - so repeat the same process as above for the plastic bag too), boxed up and transported across the world, unloaded and transported again to the store, where I drove to buy it.
So a lot more embodied energy in hat 2. And because our current form of energy is mostly the very nonrenewable oil based kind, the choice is very obvious on which one to buy if we use and value renewable resources.
This might be a more extreme example than the choices we are met with daily but I like to think about this when I am choosing how I spend my money.