1/ SAUDI ARABIA & O.P.E.C. NOTES: Arabian Peninsula – OPEC, Chokepoints & Cultural Shift VID CLIP: Sunni & Shia Islam WORK TIME: Participation Grade – Update WG Notebook – Complete Make-Up/Upcoming WG Assignments – Work on Unit 6 Review

ROAD to SUPER BOWL XLVIV Play-Off Game Saturday, January 23, 2016

ARABIAN PENINSULA

This is a traditional Bedouin shelter

97% Urban97% Urban Ranked 21 st among affluence of the 183 UN member nationsRanked 21 st among affluence (level of wealth) of the 183 UN member nations Abdullah Family from Kuwait City, Kuwait.

This is the Bedouin traditional way of cooking. Kuwait is 91% barren desert.

Al Haggan Family Kuwait City, Kuwait: Kuwait imports 98% of their food, and 90% of their drinking water comes from desalinated sea water.

How were the lives of many Kuwaitis been transformed?

Although Kuwaiti Citizens are generally wealthy, they rely on “guest workers” to do most of the hard labor. Although Kuwaiti Citizens are generally wealthy, they rely on “guest workers” (servants) to do most of the hard labor. Who’s Left Out?

ARABIAN PENINSULA: OPEC, CHOKEPOINTS, & CULTURAL SHIFT

1) List the percentage of oil reserves for each region of the world SOUTHWEST ASIA

This is just another way to look at the same info - countries with lots of oil have been made larger, those with less/no oil have been made smaller

2) Some of the countries that export a lot of oil have joined as “OPEC” (ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES)

3) The price of a barrel of oil is set by SUPPLY & DEMAND

4) O.P.E.C. Countries control oil prices by AGREEING how much OIL to PRODUCE & SELL – reducing the supply raises the cost, increasing the supply lowers the cost.

5) O.P.E.C. wants to KEEP OIL PRICES HIGH Like any business, you want to get as much as you can for the product you’re selling, so these countries try to work together rather than completing with each other.

6) O.P.E.C. wants to KEEP OIL PRICES STEADY OPEC Countries know that if the charge too much their customers will work harder to find alternative energy, then their oil won’t be worth as much They also know if the price has highs and low it hurts the whole world economy and they end up make less than they would otherwise.

CHEATQUOTA CHANGES WORLD MARKET 7) Although OPEC countries know their prices would be higher if they all worked together, sometimes they CHEAT on their QUOTA (agreed upon production amounts), which CHANGES the price of oil on the WORLD MARKET.

So Why Are Gas Prices So Low Right Now?

8) The PERSIAN GULF has some of the best oil deposits, because they have a lot and the have “SWEET CRUDE” (which is easier to pump & refine than Canadian Tar Sand Oil).

9) Once the oil is EXTRACTED, it is TRANSPORTED. 9) Once the oil is EXTRACTED, it is TRANSPORTED (by pipeline or oil tanker ships).

10) CHOKE POINT Is a strategic, NARROW point in a TRANSPORTATION route that can be easily CUT OFF

11) 25-33% of the world’s oil is shipped from the PERSIAN GULF through the STRAIT of HORMUZ – making it a chokepoint that the US NAVY protects to keep oil supplies flowing around the world.

SUEZ CANAL CANAL 12) SUEZ CANAL CANAL TIMEFUEL ATLANTIC INDIANLike the Panama Canal, ships can use this shortcut to reduce the TIME & FUEL used to transport goods between the ATLANTIC Ocean and the INDIAN Ocean through the Mediterranean Sea. It is another CHOKEPOINT oil shipments pass through. How much is the distance from Mumbai, India to London, England reduced if a ship uses the Suez Canal? 5,100 MILES5,100 MILES

13) Once the oil the oil arrives, it’s REFINED into all sorts of products. TRANSPORTATION only accounts for 2/3 of oil used in the USA. The rest is used to create PLASTICS and other HOUSEHOLD products.

14) Many PERSIAN GULF countries (Kuwait, Saudi Arabia, UAE) have a lot of OIL but not much FRESH WATER, so they rely heavily on DESALINIZATION.

15) Because the ENERGY COST of water desalinization is so high, the Persian Gulf is one of the few places in the world where it’s COST EFFECTIVE to use this TECHNOLOGY.

Oil & Gas Production/Pipelines

Differences Between Sunni & Shia Beliefs

5 Pillars of Islam (beliefs central to Islam) SUNNISHIA KORAN is a Sacred Scripture MOHAMMED was the ultimate prophet from God KORAN is a Sacred Scripture MOHAMMED was the ultimate prophet from God

SUNNI –Leadership should be chosen based on MERIT SHIA –Leadership should follow the BLOODLINE of the Prophet Mohammed Leadership After Prophet Mohammed’s Death

Interpretation of Koran SUNNI –Believe that “authoritative revelation” ENDED with the Prophet Mohammed SHIA –Believe today’s Imams can be “DIVINELY GUIDED” to explain the meaning of the Koran

SUNNI SHIA Location Believers Live cver= &cf=0&vC=0&forceBO=false#path=/mail/inbox