Clip Question – Explain the phrase “Oil makes the world go ‘round.”

As we learn about Oil in Southwest Asia, students will complete a concept web. Oil in Southwest Asia Why is oil/petroleum a strategic commodity?

What is a strategic commodity? Open your textbook to page 529 for the definition to strategic commodity. Turn to page 517 and read Control of Oil Fields for an example to match the definition of strategic commodity. Add the definition and example to your concept map. Fighting in the Persian Gulf War – Kuwait, notice the burning oil fields in the background.

Add both written and visual information to your concept map. Oil in Southwest Asia Why is oil economically important? Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply of it. Ex. – Persian Gulf War, Kuwait

Persian Gulf War – 1991 Clip Questions 1.Describe the Iraqi occupation of Kuwait? 2.Why did Iraq invade Kuwait? (add this one to your concept map) Iraq Saudi Arabia Iran Kuwait

Top Oil Producing Countries – Oil Reserves (2007) CountryReservesProductionReserve life (Billion barrels)(Million barrels/ day) (years) Saudi Arabia Canada Iran Iraq Kuwait United Arab Emirates

Oil Consumption # Consuming Nation 2006 (1,000 bbl/day) (10 3 m 3 /day) 1 United States20,5883,273 2 China7,2741,157 3 Japan5, Russia3, Germany2, India2,534403

Why is oil important economically in Southwest Asia? On page 505 read Oil Dominates the Economy and page 530 Using Oil Wealth to Diversify to answer this question. Think about who needs oil and who has the oil. Add information to your concept map.

Add both written and visual information to your concept map. Oil in Southwest Asia Why is oil economically important? Global demand for oil by consumers Oil-producing nations use money to develop infrastructure, agriculture, and education. Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply of it. Ex. – Persian Gulf War, Kuwait

Add both written and visual information to your concept map. Oil in Southwest Asia Why is oil economically important? Global demand for oil by consumers Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply of it. Ex. – Persian Gulf War, Kuwait Who is OPEC and what do they do? Oil-producing nations use money to develop infrastructure, agriculture, and education.

Who is OPEC? Task  1.Read p. 505, where it says Oil Dominates the Economy 2.Answer the following questions and add them to your concept map/web. Who is OPEC? What does OPEC do?

Oil Producing Countries OPEC = Blue Countries

Add both written and visual information to your concept map. Oil in Southwest Asia Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply. Why is oil economically important? Global demand for oil by consumers Who is OPEC and what do they do? Why are chokepoints important in this region? Suez Canal … Strait of Hormuz … Organization … Oil-producing nations use money to develop infrastructure, agriculture, and education.

Chokepoints – Narrow passages on land or water that are important economically and politically.

Which chokepoint has more oil being transported for global trade?

2. What would happen to oil producing countries if these chokepoints were closed? (Think about Saudi Arabia/Kuwait) 1. What would happen to oil consuming countries if these chokepoints were closed? (Think about the USA)

Add both written and visual information to your concept map. Oil in Southwest Asia Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply. Why is oil economically important? Global demand for oil by consumers Who is OPEC and what do they do? Why are chokepoints important in this region? Suez Canal … Strait of Hormuz … Organization … Demand for oil can lead to? Oil-producing nations use money to develop infrastructure, agriculture, and education.

Demand for oil can lead to ? Positive – Economic growth for oil producing developing countries. Negative – Imported oil can cause inflation in consumer countries (prices go up). If prices continue to go up, consumer countries develop alternative fuels/energy.