1. What do these have in common?

2. They are all made from OIL!

3. Standards
SS7G7 The student will explain the impact of location, climate, physical characteristics, distribution of natural resources and population distribution on Southwest Asia (Middle East).
a. Explain how the distribution of oil has affected the development of Southwest Asia (Middle East).
SS7E7 The student will describe factors that influence economic growth and examine their presence or absence in Israel, Saudi Arabia, and Iran.
c. Explain the role of oil in these countries’ economies.

4. Essential Question
How has the distribution of oil affected the development of the Middle East?
How has oil affected the economic growth of Israel, Saudi Arabia, and Iran?

5. OIL! BLACK GOLD! TEXAS TEA!

6. Oil in the Middle East
The discovery of oil in the Middle East changed the way of life for millions of people.
Many leaders in the region have used the wealth from oil to modernize their nations, while others kept the wealth or used it to buy weapons and build armies.

7. Distribution of Oil vs. Population in the Middle East

8. OPEC
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

9. OPEC's Objectives
to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers
an efficient, economic and regular supply of petroleum to consuming nations
a fair return on capital to those investing in the industry.

10. OPEC Members

11. State of Israel מְדִינַת יִשְׂרָאֵל
Role of oil: Israel’s economy is not based on oil.
Israel produces almost no oil and imports nearly all its oil needs.
Israel continues to search for oil.

12. Kingdom of Saudi Arabia المملكة العربية السعودية‎
role of oil: oil-based economy
largest reserves of oil in the world
largest exporter of oil
Oil accounts for more than 90% of the country's exports and nearly 75% of government revenues.

13. Islamic Republic of Iran جمهوری اسلامی ايران
role of oil: oil could help this country’s economy more than it does (poor management)
2nd largest exporter of oil
world's 4th oil producer
Uses more oil than it exports or produces
At current rate by 2015 Iran’s oil export will decline to zero

14. SUMMARY
What does OPEC stand for?
What is OPEC’s purpose?