What is OPEC? Organization of Petroleum Exporting Countries Started in Oil rich nations joined together Original members: Iran, Iraq, Kuwait, Saudi- Arabia, Venezuela Joined OPEC later: Qatar, UAE Why would they join together?

Who is the US likely to side with in war involving these nations? Why?

O IL C RISIS OF 1973 – W HY DID IT HAPPEN ?? OPEC would decide the price and amount of oil. President Nixon showed his support of Israel by giving them $ 2.5 billion worth of arms (weapons) OPEC nations retaliated against those nations supporting Israel by putting an embargo on oil shipments. EMBARGO – a type of trade barrier in which a government places restrictions on imports and exports of certain goods. Result – the price of gasoline shot way up as its supply went down, leading to shortages.

W HAT WAS OPEC’ S P OINT ? They wanted to get the attention of the international community that was supporting Israel.

Add these terms: Trade Barriers : are limits set on imports (products coming into a country). it is a tax on certain imported goods. Tariff: it is a tax on certain imported goods. is a barrier set by the government limiting the number of a certain product that can be imported. Quota: is a barrier set by the government limiting the number of a certain product that can be imported. More Severe! More Severe!

How do higher gas prices impact a country?

W HAT IT WAS LIKE IN 1973

WHAT’S THE DIFFERENCE BETWEEN PRIMARY AND SECONDARY PRODUCTS? PRIMARY PRODUCT – a raw material use to manufacture other products. Example: date palms, wood, gold, diamonds, coal, petroleum, natural resources and other fossil fuels. SECONDARY PRODUCT – a product manufactured (made by machinery/man) from a raw material. Example: syrup, paper, bronze, petrochemicals, medicines, etc.

IN OUR WORLD, WHAT ELSE IS PETROLEUM USED FOR? When petroleum is refined, its various chemical parts are separated and some become gasoline, some asphalt, and other parts become the raw materials for plastics and rubber for tires and many more things. Examples of what can be obtained from petroleum: crude oil, natural gas, and/or viscous or solid forms Fuels - like gasoline, diesel, propane (many people use propane to heat their homes), heating oil

Americans consume petroleum products at a rate of three-and-a-half gallons of oil and more than 250 cubic feet of natural gas per day each! But, as shown here petroleum is not just used for fuel. Return SolventsDieselMotor OilBearing Grease InkFloor WaxBallpoint PensFootball Cleats UpholsterySweatersBoatsInsecticides Bicycle TiresSports Car Bodies Nail PolishFishing lures DressesTiresGolf BagsPerfumes CassettesDishwasherTool BoxesShoe Polish Motorcycle Helmet CaulkingPetroleum JellyTransparent Tape CD PlayerFaucet WashersAntisepticsClothesline CurtainsFood Preservatives BasketballsSoap Vitamin CapsulesAntihistaminesPursesShoes DashboardsCortisoneDeodorantFootballs PuttyDyesPanty HoseRefrigerant PercolatorsLife JacketsRubbing AlcoholLinings SkisTV CabinetsShag RugsElectrician's Tape Tool RacksCar Battery Cases EpoxyPaint One 42-gallon barrel of oil creates 19.4 gallons of gasoline. The rest (over half) is used to make things like: Americans consume petroleum products at a rate of three and a half gallons of oil per day each. But as you can see from this chart petroleum is not just used for fuel!!

W HERE HAS THE OIL GONE ? UNITED STATES CANADA UNITED KINGDOM INDONESIA* NORWAY EGYPT ARGENTINA AUSTRALIA ECUADOR PROJECTED LIFE OF OIL RESERVES BY COUNTRY: CHINA NIGERIA* ALGERIA* MALAYSIA COLOMBIA OMAN INDIA QATAR* ANGOLA ROMANIA YEMEN BRUNEI SAUDI ARABIA* RUSSIA IRAN* VENEZUELA* MEXICO LIBYA* BRAZIL AZERBAIJAN TRINIDAD LESS THAN 10 YEARSLESS THAN 50 YEARSLESS THAN 100 YEARS

W HAT WILL IT BE LIKE IN THE YEAR 2175? YOUR ASSIGNMENT IS TO CREATE A MIND MAP OF WHAT THE WORLD WOULD BE LIKE IF WE RAN OUT OF PETROLEUM. THINK ABOUT HOW YOUR DAILY LIFE WILL BE AFFECTED? WHAT WILL THERE BE LESS OF? WHAT WILL THERE BE MORE OF? WHAT WILL WE DO DIFFERENTLY?

IT IS THE YEAR 2175 THERE IS NO OIL/PETROLEUM NO TRUCK S NO DELIVERIES ALTERNATE FORMS OF FUEL DISCOVERE D MORE PEOPLE WALKING NO CARS THAT USE GASOLIN E NO PLASTIC S HEAVIER CONTAINER S (GLASS, METAL, ETC