THE MIDDLE EAST The Importance of Oil & OPEC

An Important Question What do you feel is the United States ’ interest in the Middle East? a. oil b. protection of Israel c. humanitarian efforts d. a genuine interest in spreading democracy e. all of the above

OIL Oil is the most important energy source in the world today. Oil has changed the Middle East. –Modern, wealth, armies, weapons. Oil is a finite (exhaustible) resource Creates a need to regulate and monitor production/distribution

COMMUNISM vs. DEMOCRACY The Cold War was portrayed as a fight for Democracy and freedom. However, one of its main goals was to make sure that communism didn’t reach the Middle East Although there were many communist countries, the biggest concern and threat was USSR/Soviet Union. Leaders of western countries didn’t want communism to spread to the Middle East. Because they didn ’ t want the Soviet Union to gain control over the region. They didn ’ t want the majority of the world ’ s wealth in the control of communists.

OPEC Organization of Petroleum Exporting Countries In 1960, all the major oil producing countries got together to form a cartel. OPEC was founded in Baghdad, Iraq. They wanted to control the price of oil to ensure that they could get the highest profit. Members agree to sell oil at set prices and abide by production limits. cartel-an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition

Algeria Angola Ecuador Iran Iraq Kuwait OPEC currently consists of 12 members Libya Nigeria Qatar Saudi Arabia United Arab Emirates Venezuela

Where has all the oil gone? Projected life of oil reserves by country Less than 10 years United States Argentina CanadaAustralia United KingdomEcuador* Indonesia Norway Egypt *OPEC member

Where has all the oil gone? Projected life of oil reserves by country Less than 50 years China India Nigeria*Qatar* Algeria*Angola* Malaysia Romania Colombia Yemen Oman Brunei *OPEC member

Where has all the oil gone? Projected life of oil reserves by country Less than 100 years Saudi Arabia* Brazil Russia Azerbaijan Iran*Trinidad Venezuela* Mexico Libya* *OPEC member

Where do WE get our oil? Saudi Arabia* Brazil Russia Azerbaijan Iran* Trinidad Canada Venezuela* Mexico Libya*

Note: Country size is determined by world reserves of oil

This has been used as a political tool. OPEC punished Western nations by not supplying any oil when they supported Israel in the 1973 Arab- Israeli wars.

In August 1990, Iraq invaded Kuwait to keep it from selling more oil than OPEC had allowed. The US fought in the Gulf War to protect Kuwait and its oil supply. GULF WAR

ARABS Religion’s Role in World Conflicts “It’s not that simple!” KURD S SUNNI ARABS SHI’I ARABS SUNNI