Oil in the Middle East https://www.youtube.com/watch?v=UMxTZQgespU https://www.youtube.com/watch?v=imp082AMNH8 SS7E5 Explain how voluntary trade benefits buyers and sellers in Southwest Asia (Middle East). d. Explain the primary function of the Organization of Petroleum Exporting Countries (OPEC). Human Environment Interaction - The student will understand that humans, their society, and the environment affect each other

Oil and Natural Gas Two of the most important natural resources found in Southwest Asia are natural gas and oil. These two resources bring wealth into the region because they are needed for much of the world’s economy. Over half of the world’s known oil reserves are found in the Middle East. Countries with access to oil often have much more money than countries without access to oil.

What do we use petroleum for? http://www.ranken- energy.com/products%20from%20petroleu m.htm

According to the image below, 99 According to the image below, 99.8% of the world’s oil comes from the Middle East. What does this mean for countries in the Middle East? What is the problem then?

Oil in the Middle East Oil is not distributed equally in the Middle East. Some countries have a lot of oil and some countries very little oil. Identify a country in the Middle East that has a lot of oil. Identify a country in the Middle East that has very little oil. The sale of oil has earned extraordinary amounts of money for oil rich countries; however, not all countries have prospered. Oil rich Iran and Iraq have suffered from war and the mismanagement of oil money; whereas, Saudi Arabia has used money from oil to transform from a poor society to a wealthy one.

What is the link between oil fields or refineries and population density? Instructional Approach(s): The teacher should lead a short classroom discussion of the question on the slide using the diagram and what students learned in the Jigsaw Activity.

Populations are larger near oil fields or refineries Populations are larger near oil fields or refineries. Cities grow in these areas and more jobs are available. Instructional Approach(s): The teacher should present the information on the slide.

OPEC- Organization of Petroleum Exporting Countries Prior to 1960, oil companies were receiving the greatest benefits from the M.E. abundant natural resources. In 1960, 5 oi-rich Southwest Asian countries joined with other oil-rich countries around the world to create the Organization of Petroleum Exporting Countries (OPEC) in order to have more control over the price of oil on the world market. The founding countries were: Iran. Iraq, Saudi Arabia, Kuwait & Venezuela Countries belonging to OPEC control the daily production of oil which in turn controls the price of oil on the world market.

OPEC’s Policy Statement States that there is a right of all countries to exercise sovereignty over their natural resources. Sovereignty=authority, supreme power.

OPEC’s Purpose To control the price of oil on he world market

OPEC’s Influence OPEC sets the price and amount of oil produced by its member nations OPEC has a lot of power and has used oil as a political tactic. For example, in 1973 OPEC stopped exporting oil to countries that supported Israel causing gasoline shortages in the U.S. and other countries.

Members of OPEC

Founding OPEC Members Mark or Color Saudi Arabia, Iraq, Iran, and Kuwait (right below Iraq) on your map. Label your Key to match your map. Add Venezuela

Current OPEC Members Mark or color the remaining OPEC members on your map. Label your Key to match your map.

Use the graph below to answer the questions with a partner. [Value of the money of that year] - what is happening or not happening to the line? Since the line is not really changing, what does that mean for the countries providing the oil? During the 1980s and up the line changes a lot and more importantly, the line is continually moving up. So, from 1931 to 1971 the countries producing oil were not making money. From 1971 and on the oil producing countries started making A LOT of money. In this lesson we will find out how. Look specifically at the years from 1931 to 1971. If you are a country whose main natural resource is oil, what is a problem for your country? Compare the 1980s and 1990s to 1971. What happened to cause a jump in oil prices?