1. Oil

2. About 64% of the world’s oil reserves are in Southwest Asia
Oil is extremely important for the world
Forms of oil drive most military equipment
Oil is necessary for modern industrial economies
The price of oil changes on a regular basis, and it is a non-renewable natural resource (it will run out)
The goal of many countries with oil is to use the money from that resource to strengthen the economy for when it runs out
Investing in other industries, infrastructure, and education

3. Estimated Worldwide Oil Reserves
1. What does this map indicate about oil and Southwest Asia?

4. Monthly Crude Oil Prices
2. What does this graph indicated about countries relying on oil for their economy

5. 3. What does these graphs indicate about the relationship between the US and Southwest Asia?

6. 4. What countries would oil from Saudi Arabia have to pass through in order to be sold in Europe?

7. Oil has a large impact on the politics of the region
The rulers of the Persian Gulf are able to stay in power, in part, because the governments there directly control the oil
Oil wealth allows them to afford large police forces and advanced military equipment
The governments get so much money from oil that they do not need to tax their people
The governments can afford large handouts and social welfare programs for their citizens
Countries come into conflict over the control of oil fields
Example: Iraq invaded Kuwait in 1990, in part, to capture Kuwait’s oil fields