EQ: How has oil impacted the countries

of Southwest Asia?

You only have to write what is underlined….

Oil Discovered!Oil was first discovered in Persia (Iran) in 1908.

In 1927, oil was struck in Kirkuk, Iraq.

TERMS ASSOCIATED WITH OIL:

•natural resources•non-renewable resources•fossil fuels•crude oil•oil reserves

What are natural resources?

Natural resources are the raw materials a country has that make life and production of goods possible.

What is a non-renewable resource?

A non-renewable resource is a resource that takes so long to form that it can’t be replaced. Oil, which takes millions of years to form, is just such a resource.

What is a fossil fuel?

Oil and natural gas are fossil fuels. Fossil fuels were created when plants and animals that lived centuries ago decayed underground.

What is crude oil?

Crude oil is petroleum as it comes out of the ground and before it has been refined or processed into useful products.

What are oil reserves?Oil reserves refer to oil that has been discovered but remains unused in the ground.

Southwest Asia and Oil

Southwest Asia has Southwest Asia has been transformed by oil.been transformed by oil.

1. This region has 1. This region has the world’s largest known oil the world’s largest known oil reserves.reserves.

2. 2. More than half of the world’s proven crude oil More than half of the world’s proven crude oil reserves lie under Southwest Asia.reserves lie under Southwest Asia.

3. There are also large reserves of natural gas.3. There are also large reserves of natural gas.

…and new

There are many oil rigs around the Middle East.

1. 1. Saudi Arabia Saudi Arabia (the largest country in (the largest country in Southwest Asia) Southwest Asia) has approximately 1/4 of has approximately 1/4 of the world’s known oil reserves.the world’s known oil reserves.2. Kuwait (a small country) has 1/10 of the 2. Kuwait (a small country) has 1/10 of the world’s oil reserves.world’s oil reserves.

Saudi Oil Fields & Refineries

Southwest Asia and Oil

Most of the world’s industrial Most of the world’s industrial nations depend on a steady nations depend on a steady supply of oil and natural gas.supply of oil and natural gas.

Southwest Asia and OilSouthwest Asia and Oil

The following services depend on The following services depend on these fuels to meet their energy these fuels to meet their energy needs:needs:1.1. transportation (gasoline and oil)transportation (gasoline and oil)2.2. electricity depends on oil and natural gas to electricity depends on oil and natural gas to

run power plantsrun power plants3.3. plasticsplastics4.4. medicinesmedicines

Southwest Asia and Oil

Oil money has been used to better Oil money has been used to better the lives of the people in Southwest the lives of the people in Southwest Asia.Asia.

1. 1. Roads have been paved Roads have been paved and and modern buildings have been builtmodern buildings have been built2. 2. Improved medical care Improved medical care has helped has helped people to live longer.people to live longer.

Southwest Asia and OilSouthwest Asia and Oil

Oil has made many people is Southwest Oil has made many people is Southwest Asia better off.Asia better off.

1. Life expectancy has increased by 15 years over 1. Life expectancy has increased by 15 years over the last 30 years.the last 30 years.2. Infant mortality rate (number of babies that die 2. Infant mortality rate (number of babies that die in their first year) has fallen.in their first year) has fallen.

Southwest Asia has Southwest Asia has grown rich, supplying grown rich, supplying the world’s oil needs.the world’s oil needs.

However, oil is not distributed equally.

Oil Has Not Improved Life for All

1. Yemen is one of the 20 poorest countries in the world (low oil reserves and large population).2. Iraq has the second largest oil reserve but a low HDI.

a. Saddam Hussein a. Saddam Hussein used oil money used oil money to to build an army.build an army.

b. Buying weapons and fighting wars b. Buying weapons and fighting wars has used up their money.has used up their money.

Oil Has Not Improved Life for All

Per capita GDP varies greatly for each country.

Per capita GDP is the average income of the people in a country (GDP) divided by the population.

1. UAE and Kuwait have high GDP and low population numbers. This gives them high per capita GDP.

2. Saudi Arabia and Iran have high GDP and high population numbers . This gives them lower per capita GDP.

3. Bahrain has small oil reserves but high per capita GDP because they earn money by the processing of crude oil and development of an international banking system.

Poor and Rich

Per Capita GDP does not tell the whole story.

Per capita GDP is an average wealth with some people extremely wealthy and others very poor.

Human Development Index (HDI) looks at the per capita GDP and factors like life expectancy and education.

1. Bahrain has the highest HDI, using 1. Bahrain has the highest HDI, using its wealth to educate its population.its wealth to educate its population.2. Bahrain provides good health care 2. Bahrain provides good health care which has contributed to its low infant which has contributed to its low infant mortality rate.mortality rate.

Education in Education in BahrainBahrain

The Price and Flow of Oil

Oil-Exporting Countries work to control the price of oil.1. 1. OPEC (Organization of the Petroleum OPEC (Organization of the Petroleum Exporting Countries) was established in 1960 to Exporting Countries) was established in 1960 to control the supply and income of oil producing control the supply and income of oil producing countries.countries.

OPEC can’t completely control OPEC can’t completely control oil prices and supplies.oil prices and supplies.

1. There are many non-OPEC oil producers that compete with OPEC.

2. OPEC members don’t always work together as a unit, and sometimes under cut each other.

Summary Much of the world’s oil is under Much of the world’s oil is under

Southwest Asia.Southwest Asia. Oil reserves are not distributed Oil reserves are not distributed

evenly evenly among the region’s countries.among the region’s countries. The wealth from oil sales is not The wealth from oil sales is not

evenly evenly distributed among the citizens distributed among the citizens of the of the countries in Southwest Asia.countries in Southwest Asia.

Oil is a non-renewable resource that will eventually run out.

Persian Gulf Oil Exports (2003)

World Oil Reserves