OIL, OPEC, & THE MIDDLE EAST

1. Valuable natural resource that comes from the ground 1. Valuable natural resource that comes from the ground. Non- renewable resource.

Many uses for oil!

These items all have petroleum/oil as an ingredient…

Manufacturing

Fuel

Gasoline

In the car I drive to the store.

Heat in factories

PETROCHEMICALS Aspirin/medicine Paving Materials Insecticides Wax Milk Cartons Candles Fibers Toothpaste Detergents Fertilizers ANYTHING PLASTIC!

CURRENTLY…. Barrel of oil = 42 gallons. Current price = $56/barrel CURRENTLY… *Barrel of oil = 42 gallons *Current price = $56/barrel **USA consumes ~20 million barrels/day This is 25% of WORLD’s usage **We import ~60% of the oil we use

Show DVD clips on OIL… Eastern World SW Asia The Arabian Peninsula, Iraq, and Iran Impact of OIL ABC News/Stossel Oil Supplies: America is running out of oil. Truth or myth?

3. Industrialized countries use the most because of transportation & energy. USA uses the most!

We are VERY dependant on OIL!!

We only supply ~40% of our own oil. Out of the 60% of the oil we import…35% comes from OPEC countries and 65% comes from non OPEC countries.

Remember…the USA imports 60% of our oil Remember…the USA imports 60% of our oil! Our top suppliers include: Canada, Mexico, Saudi Arabia, Venezuela, Iraq

67% of the world’s oil is in the Middle East Saudi Arabia has ~ 25% of world’s oil supply USA gets ~30% of oil from Middle East

Cartogram

5. Value recognized in 1800s with kerosene, then 1900s cars 5. Value recognized in 1800s with kerosene, then 1900s cars. Oil discovered in Saudi Arabia in 1938.

6. Everything uses it. USA uses so much we cannot support ourselves 6. Everything uses it! USA uses so much we cannot support ourselves. We also do not want to use all of our reserves up.

7. HELPED: makes life more comfortable, faster, and modern, improves technology and industry HURT: made us more wasteful, increased pollution, more unhealthy, and increased fighting and conflict in the world

8. Lives different. Economy may go down 8. Lives different. Economy may go down. Need to develop alternative resources and new industries HYDROCARBONS?

Organization of Petroleum Exporting Countries O.P.E.C. Organization of Petroleum Exporting Countries

9.Organization of Petroleum Exporting Countries: created to set world oil prices and control production. Goal is to make a profit. Supply & demand along with current events affects the price.

10. Currently, 12 countries: Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE, Venezuela, Gabon 7 are located M.E. 10 are Muslim nations

Created in 1960 to get more money for oil and to get rid of other countries and their involvement in the oil market. Founding members: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela. Headquarters started in Geneva, Switzerland, and now located in Vienna, Austria.

OPEC supplies about 1/3 of the USA’s oil supply. Oil has been used as a political and economic weapon. OPEC has the majority of the world’s proven oil reserves…they control the world’s oil supply. MONOPOLY!!!

13.We need oil… they have oil! This affects our economy. PS. Israel is a strategic military site for us.