1. Oil!

2. Oil What is oil? How is it formed? When scientists learned how to use oil for energy many countries with oil, such as Saudi Arabia, suddenly had a very valuable resource. How did this change the country and did it help people live better lives? BRAINPOP – Fossil Fuels (petroleum section)

3. Brainstorm with your neighbor: Which countries have the most oil? Which countries use the most oil?

4. Proven Oil Reserves (billions of barrels) 2012 *An oil reserve is the amount of oil we know is still in the ground RankCountryReserve 1.Saudi Arabia267 2.Venezuela211.2 3.Canada173.6 4.Iran151.2 5.Iraq143.1 6.Kuwait104 7.United Arab Emirates97.8 8.Russia60 9.Libya47.1 10. Nigeria37.2 In what regions/s of the world are most of these countries?

5. Proven Oil Reserves (billions of barrels) 2012 *An oil reserve is the amount of oil we know is still in the ground RankCountryReserve 1.Saudi Arabia267MIDDLE EAST 2.Venezuela211.2 3.Canada173.6 4.Iran151.2MIDDLE EAST 5.Iraq143.1MIDDLE EAST 6.Kuwait104MIDDLE EAST 7.United Arab Emirates97.8MIDDLE EAST 8.Russia60 9.Libya47.1 10. Nigeria37.2 THE MIDDLE EAST!!! This region of the world holds about 2/3 of the world’s known oil reserves.

6. Top Oil Consumers (millions of barrels per day) 2012 *Consumers are people and industries that use oil RankCountryTotal Oil Consumption 1. United States18.5 2.China9.9 3.Japan4.7 4.India3.5 5.Russia3.2 6.Brazil3.0 7.Saudi Arabia2.9 8.Canada2.4 9.Germany2.4 10.South Korea2.3 What are things these countries have in common??

7. Create a new glossary: Natural Resources OIL Fossil fuels: Forms of energy, such as coal, fuel oil or natural gas, formed from the remains of dead plants and animals. Oil reserves: The amount of oil that scientists estimate can be recovered from known sources. *You are still responsible for the following terms: natural resources renewable resources non-renewable resources

8. Brainstorm with your neighbor: Why is oil such a valuable natural resource?

10. Oil is important to everyone on Earth…but not distributed equally across the globe. Oil-exporting countries: Countries that export oil depend on oil sales to make money. They want to make sure they keep a steady supply of oil leaving their country and money coming in. SUPPLY Oil-importing countries: These countries want to ensure they have enough oil…without oil they cannot make things in their factories or produce energy. They also want to make sure the price of oil is not too high. DEMAND

11. Think About: All countries need oil. If you cannot produce it yourself you must buy it from a country that has it. Imagine oil is a t-shirt. You need to buy a t-shirt and 3 stores sell the exact same t-shirt…what is going to make you buy one t-shirt over another?

12. PRICE! You want to buy the cheapest t-shirt. What would your decision (and that of other people at the market) look like?? 1.On your paper draw a graph. 2.Call the x-axis ‘Quantity’ (quantity means the amount of something) Draw a scale 10, 20, 30, 40, 50 3.Call the y-axis ‘Price’ Draw a scale $5, $10, $15, $20, $25

13. What the decision for buyers/shoppers at the market looks like: Your choices for number of t-shirts: 10, 20, 30, 40, 50 Your choices for price: $5, $10, $15, $20, $25 Draw a line for the sellers: How many t-shirts does the seller want to sell for $25? Draw a dot. How many t-shirts does the seller want to sell for $5? Draw a dot. Connect the 2 dots with a straight line. Label this line ‘Supply’ Draw a line for the shoppers: How many t-shirts does the buyer want to buy for $25? Draw a dot. How many t-shirts does the buyer want to buy for $5? Draw a dot. Connect the 2 dots with a straight line. Label this line ‘Demand’

14. Supply and Demand Graph The seller wants to sell the most t-shirts at the higher price. The buyer wants to buy the most t-shirts at the lowest price. After they bargain, they settle on a quantity and price somewhere in the middle. We call this EQUILIBRIUM. Have you seen this happening in real life???

15. Surplus and Shortage Graph What happens when an item is sold at a price below equilibrium?? Everyone wants to buy it and we have a SHORTAGE. What happens when an item costs more than the buyer wants to pay? The buyer won’t buy it so we have a SURPLUS. Mark EQUILIBRIUM and the areas of SHORTAGE and SURPLUS on your graph.

16. Glossary: Economics Supply: The amount of goods offered for sale. Demand: Amount of goods consumers are willing and able to buy. Shortage: When demand is greater than supply (people want to buy more of a product than sellers have made.) Demand > Supply Surplus: When demand is less than supply (sellers are selling more of a product than people want to buy.) Demand < Supply Equilibrium: A point where buyers are willing to pay the amount that sellers are happy to accept for the product. Supply = demand

17. Classwork and Homework: Assignment 3: In class Assignment 4: Finish for homework