Clip Question – Explain the phrase “Oil makes the world go ‘round.”

As we learn about Oil in Southwest Asia, students will complete a concept

web.

Oil in Southwest Asia

Why is oil/petroleum a strategic commodity?

What is a strategic commodity?• Open your textbook

to page 529 for the definition to strategic commodity.

• Turn to page 517 and read Control of Oil Fields for an example to match the definition of strategic commodity.

• Add the definition and example to your concept map. Fighting in the Persian Gulf War – Kuwait,

notice the burning oil fields in the background.

Add both written and visual information to your concept map.

Oil in Southwest AsiaWhy is oil economicallyimportant?

Why is oil/petroleum astrategic commodity?

A resource so important,people will go to war

to get a steady supply of it.Ex. – Persian Gulf War,

Kuwait

Persian Gulf War – 1991 • Clip Questions

1. Describe the Iraqi occupation of Kuwait?

2. Why did Iraq invade Kuwait? (add this one to your concept map)

Iraq

Saudi

Arabia

Iran

Kuwait

Top Oil Producing Countries – Oil Reserves (2007)

Country Reserves Production Reserve life

(Billion barrels) (Million barrels/ day)

(years)

Saudi Arabia 260 8.8 81

Canada 179 2.7 182

Iran 136 3.7 101

Iraq 115 2.2 143

Kuwait 99 2.5 108

United Arab Emirates

97 2.5 107

Oil Consumption# Consuming

Nation 2006(1,000 bbl/day)   (103m3/day)

1 United States 20,588 3,273

2 China 7,274 1,157

3 Japan 5,222 830

4 Russia 3,103 493

5 Germany 2,630 418

6 India 2,534 403

Why is oil important economically in Southwest Asia?

• On page 505 read Oil Dominates the Economy and page 530 Using Oil Wealth to Diversify to answer this question.

• Think about who needs oil and who has the oil.

• Add information to your concept map.

Add both written and visual information to your concept map.

Oil in Southwest AsiaWhy is oil economicallyimportant?

Global demand foroil by consumers

Oil-producing nations use money

to develop infrastructure, agriculture, and education.

Why is oil/petroleum astrategic commodity?

A resource so important,people will go to war

to get a steady supply of it.Ex. – Persian Gulf War,

Kuwait

Add both written and visual information to your concept map.

Oil in Southwest AsiaWhy is oil economicallyimportant?

Global demand foroil by consumers

Why is oil/petroleum astrategic commodity?

A resource so important,people will go to war

to get a steady supply of it.Ex. – Persian Gulf War,

Kuwait

Who is OPEC andwhat do they do?

Oil-producing nations use money

to develop infrastructure, agriculture, and education.

Who is OPEC?• Task 1. Read p. 505,

where it says Oil Dominates the Economy

2. Answer the following questions and add them to your concept map/web.

Who is OPEC? What does OPEC

do?

Oil Producing Countries

OPEC = Blue Countries

Add both written and visual information to your concept map.

Oil in Southwest Asia

Why is oil/petroleum a strategic commodity?

A resource so important, peoplewill go to war to get a

steady supply.

Why is oil economicallyimportant?

Global demand foroil by consumers

Who is OPEC andwhat do they do?

Why are chokepointsimportant in this region?

Suez Canal …Strait of Hormuz …

Organization …

Oil-producing nations use money

to develop infrastructure, agriculture, and education.

Chokepoints – Narrow passages on land or water that are important economically and

politically.

http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/ch5c1en.html

Which chokepoint has more oil being transported for global trade?

2. What would happen to oil producingcountries if these chokepoints wereclosed? (Think about Saudi Arabia/Kuwait)

1. What would happen to oil consumingcountries if these chokepoints were closed? (Think about the USA)

Add both written and visual information to your concept map.

Oil in Southwest Asia

Why is oil/petroleum a strategic commodity?

A resource so important, peoplewill go to war to get a

steady supply.

Why is oil economicallyimportant?

Global demand foroil by consumers

Who is OPEC andwhat do they do?

Why are chokepointsimportant in this region?

Suez Canal …Strait of Hormuz …

Organization …

Demand for oil can lead to?

Oil-producing nations use money

to develop infrastructure, agriculture, and education.

Demand for oil can lead to ?

• Positive – Economic growth for oil producing developing countries.

• Negative – Imported oil can cause inflation in consumer countries (prices go up).

If prices continue to go up, consumer countries develop alternative fuels/energy.

www.eere.energy.gov