1. Black Gold, White Gold Petrochemicals and Agribusiness in the 21 st century

2. Oil: Black gold

3. Post WWII WWII showed the future needed gasoline Machines replaced hand labor in manufacturing Transportation now depended on gasoline

4. Oil now meant power Nations with oil reserves that had been undeveloped now found themselves with unlimited wealth Competing against each other to sell their oil was destructive To protect themselves, many nations in the Middle East created a treaty organization, called....

5. OPEC OPEC's objective is 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; and a fair return on capital to those investing in the industry.

6. Why use OPEC oil? Three main reasons

7. Environmental effects Environmental effects of their oil industry are contained in OPEC member countries Not here Environmental accidents occurring in the member nations are their responsibility Not Ours

8. Costs Expenses for development, safety, training, drilling, transporting and exporting the crude oil are paid by the member nations Not US

9. Increased Trade Crude Oil is a trade good Finished gasoline, often refined in Texas, is also a trade commodity. This interdependence helps stimulate and balance USA economy

10. Problems from OPEC OPEC was created in the 1970s to control the supply and price of oil

11. OPEC Oil Crisis OPEC decided to cut of the oil supply to the USA in 1973 because USA supported Israel, which many Arab countries despise. An energy crisis resulted, where the prices of oil and gas rose dramatically and gas was rationed

12. Positive Results? Many Texas oil companies started drilling more wells in Texas This created jobs in the oil industry where many Texas gained valuable skills used now all over the world

13. Gulf War Both Gulf Wars caused major concerns over the safety of Middle East Oil Alternative sources of power-including domestic oil field drilling-became more important

14. Alternatives to oil? Nuclear energy Wind power Hydroelectric power

15. agribusiness How farming has changed

16. Modern Methods Large machines used for both planting and harvesting Farm workers rarely own the land, but are employees of a company Several farms provide the produce used by a company

17. Crops Cotton-North Texas Citrus Fruits and vegetables- Rio Grande Valley Fruits, nuts and wine- Hill Country

18. future Texas Business reports: COLLEGE STATION – Texas agricultural losses due to the 2011 drought reached a record $7.62 billion, making it the most costly drought in history, according to updated totals by Texas AgriLife Extension Service economists.