Oil in Southwest Asia: Oil in Southwest Asia: How “Black Gold” Has How “Black Gold” Has

Shaped a RegionShaped a Region

SS7G7 a. SS7G7 a. Explain how the distribution of oil has affected the development of Southwest

Asia (Middle East).

1.1. Crude oil: Crude oil: petroleumpetroleum as it comes out of the ground as it comes out of the ground and before it has been and before it has been refinedrefined or processed into or processed into useful productsuseful products

2.2. Nonrenewable resource: a Nonrenewable resource: a resourceresource that takes so that takes so long to form that it long to form that it can’tcan’t be be replacedreplaced. Oil, which . Oil, which takes millions of years to form, is such a resource.takes millions of years to form, is such a resource.

3.3. Oil reserves: Oil reserves: oiloil that has been discovered but that has been discovered but remains remains unusedunused in the groundin the ground

4.4. Renewable resourceRenewable resource: a resource that can’t be used : a resource that can’t be used up or that can be replaced quickly as it is used up. up or that can be replaced quickly as it is used up.

VocabularyVocabulary

I. IntroductionI. IntroductionA.A. Southwest Asia has been Southwest Asia has been transformedtransformed by by

oil.oil.

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

2. There are large reserves of 2. There are large reserves of naturalnatural gas.gas.

B. B. Oil money Oil money has been used to better the lives has been used to better the lives of the people in this region.of the people in this region.

1. 1. RoadsRoads have been paved and have been paved and modernmodern buildings have been builtbuildings have been built

2. 2. ImprovedImproved medicalmedical care has helped care has helped people to live people to live longerlonger

C. Oil: Southwest Asia’s Hidden TreasureC. Oil: Southwest Asia’s Hidden Treasure

1. More than 1. More than halfhalf of the of the world’sworld’s proven proven crude oil reserves lie under this crude oil reserves lie under this regionregion..

2. 2. DevelopedDeveloped countries depend on these countries depend on these fuels to meet their energy needs.fuels to meet their energy needs.

a. a. TransportationTransportation (gasoline and oil) (gasoline and oil)

b. Electricity depends on oil and b. Electricity depends on oil and natural natural gas to run power plantsgas to run power plants

c. c. PlasticsPlastics

d. Medicinesd. Medicines

33. . S.W. Asia has grown S.W. Asia has grown richrich, , supplyingsupplying the world’s oil needsthe world’s oil needs

4. Oil is a 4. Oil is a nonrenewablenonrenewable resource that resource that willwill eventually run out.eventually run out.

D. Oil Is D. Oil Is NotNot Distributed Equally throughout Distributed Equally throughout S.W. AsiaS.W. Asia

1. Distribution of oil is 1. Distribution of oil is not evennot even..

2. 2. Saudi Arabia Saudi Arabia (the largest country) has (the largest country) has approximately ¼ of the world’s known oil approximately ¼ of the world’s known oil reserves.reserves.

3. 3. KuwaitKuwait (a small country) has1/10 of the (a small country) has1/10 of the world’s oil reserves.world’s oil reserves.

Oil Wealth and People’s Well-BeingOil Wealth and People’s Well-Being

A.A. Oil Has Made Many People Oil Has Made Many People BetterBetter OffOff

1. 1. Life expectancy Life expectancy has increasedhas increased by 15 by 15 years over the last 30 years.years over the last 30 years.

2. Infant mortality rate (number of 2. Infant mortality rate (number of babies that die in their first year) babies that die in their first year) fellfell..

3. 3. ProfitsProfits from oil help to increase Gross from oil help to increase Gross domestic product (domestic product (GDPGDP): all the goods ): all the goods and services produced by a country and services produced by a country each year.each year.

D. Oil Has D. Oil Has NotNot Improved Life for Improved Life for AllAll

1. 1. YemenYemen is one of the 20 poorest countries is one of the 20 poorest countries in the world (low oil reserves and large in the world (low oil reserves and large population)population)

2. 2. IraqIraq has second largest oil reserve but a has second largest oil reserve but a low human development index.low human development index.

a. a. Saddam Hussein Saddam Hussein used oil used oil moneymoney for for building an building an armyarmy

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

3. Some 3. Some governmentsgovernments are are corruptcorrupt and keep and keep the profits from oil to themselvesthe profits from oil to themselves

The Price and Flow of OilThe Price and Flow of Oil

A.A. Oil-Exporting Countries: Working to Oil-Exporting Countries: Working to Control the Price of OilControl the Price of Oil

1. 1. OPECOPEC (Organization of the (Organization of the Petroleum Exporting Countries) was Petroleum Exporting Countries) was established in 1960 to established in 1960 to controlcontrol the the priceprice and and supplysupply of oil on the world market.of oil on the world market.

a. S.W. Asia members: Iran, Iraq, a. S.W. Asia members: Iran, Iraq, Saudi Arabia, Kuwait, Qatar, UAE.Saudi Arabia, Kuwait, Qatar, UAE.

b. b. Outside Outside S.W. Asia members: S.W. Asia members: Venezuela, Algeria, Libya, Nigeria, Venezuela, Algeria, Libya, Nigeria, IndonesiaIndonesia

c. S.W. Asia non-members: Bahrain, c. S.W. Asia non-members: Bahrain, Yemen, Oman, and SyriaYemen, Oman, and Syria

2. OPEC can’t 2. OPEC can’t completelycompletely control oil prices control oil prices and suppliesand supplies

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

b. OPEC members don’t always work b. OPEC members don’t always work together as a unit, under cutting each together as a unit, under cutting each otherother

OPECOPEC

Beginning to Think Globally…Beginning to Think Globally…

A.A. Crude oil Crude oil forms deep within Earth.forms deep within Earth.

B.B. Much of the Much of the world’sworld’s oiloil is under S.W. is under S.W. AsiaAsia

C. Oil reserves C. Oil reserves are not distributed evenlyare not distributed evenly among the region’s countriesamong the region’s countries

D. The D. The wealthwealth from oil sales is from oil sales is notnot evenlyevenly distributed among the citizens distributed among the citizens of the countries.of the countries.

E. E. Oil is a Oil is a nonrenewable resource nonrenewable resource – it – it will run out. What will we do?will run out. What will we do?

F. Renewable resources/Cleaner F. Renewable resources/Cleaner energy sources are being developed.energy sources are being developed.