2. Question of the Day. (TURN OBJECTIVE INTO A QUESTION) 1. Objective (READ) SWBAT describe how oil affects relationships between oil-producing countries and oil-consuming countries 2. Question of the Day. (TURN OBJECTIVE INTO A QUESTION) 3. Warm-up (ANSWER) 1. Give an example of a commercial that could not be shown in a traditional Islamic society. 2. Give an example of how you used oil indirectly today (you can not say anything related to transportation).

Oil in Southwest Asia

Clip Questions: 1. Why is oil so valuable? 2. Is the US economy dependant on oil? Explain why or why not.

As we learn about Oil in Southwest Asia, students will complete a concept web. Directions: 1. Copy this web. 2. Get a laptop and a group. 3. Go to S:) Student Read Only – Orso Folder – SW Asia Folder - Open the file called “Oil – 11”. Why is oil/petroleum a strategic commodity? Oil in Southwest Asia

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 1. Find an example to match the definition of strategic commodity. 2. 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. Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply of it. Ex. – Persian Gulf War, Kuwait Oil in Southwest Asia Why is oil economically important?

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 97 107

Oil Consumption (How much oil they use) # 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

Charts Analysis Answer the questions below based on the two charts from the previous slide. Put them on your web or on the back of that page. 1. Who produces the most oil? 2. Who consumes the most oil? 3. What is the economic relationship between oil consuming countries and oil producing countries? 4. How will this impact both groups positively and negatively?

Government Document Analysis Directions: Click on the link in the headline, use it to answer the questions. Put them on your Oil Clip question page. Title it Government Document Analysis Part 1 (p. 14-16): 1) Explain how the US and Saudi Arabia are linked economically? 2) Describe specifically how each side helps the other one. Part 2 (p. 18-19) 3) What is the political impact of linking the US and Saudi Arabia economically? 4) Explain how the two nations cooperate politically as a result of their economic situation.

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 the question in the headline. Think about who needs oil and who has the oil. Add your answer to your web.

Add both written and visual information to your concept map. Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply of it. Ex. – Persian Gulf War, Kuwait Oil in Southwest Asia Why is oil economically important? Global demand for oil by consumers Oil-producing nations use money to develop infrastructure, agriculture, and education.

Add both written and visual information to your concept map. Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply of it. Ex. – Persian Gulf War, Kuwait Oil in Southwest Asia Why is oil economically important? Global demand for oil by consumers Who is OPEC and what do they do? Oil-producing nations use money to develop infrastructure, agriculture, and education.

Who is OPEC? Task Use the following slides to answer the questions below add them to your web. A. What is OPEC? B. What does OPEC do? C. Who is in OPEC?

OPEC Info - 1 OPEC after 1975. The interests of OPEC (the Organization of Petroleum Exporting Countries) and the consumer countries (those who buy a lot of oil) were the same: both wished to see large amounts of oil flow through to consumers at high prices. In these circumstances, OPEC members received large amounts of money in royalties and taxes, and the majors were assured supplies of crude oil with which to supply their global market. The interests diverged in that the consumer countriees did not care where the oil came from as long as it was reliable. They willingly took oil from non-OPEC members like the United States, Britain, and Norway (and rushed to sign contracts with former Communist nations too). The consumer countries were only under the influence of OPEC only as long as OPEC nations held the crude oil that they needed. OPEC nations once again came to depend on the Seven Sisters as soon as OPEC oil became optional rather than necessary for the major oil companies.

Oil Producing Countries OPEC = Blue Countries

OPEC Info - 2 OPEC Today. There are 13 important members of OPEC. The five largest producers and exporters in the group are in the Middle East: Saudi Arabia, Iraq, Iran, Kuwait, and the United Arab Emirates, and the other members are Libya, Venezuela, Algeria, Nigeria, Gabon, Indonesia, Ecuador, and Qatar. The major oil producing nations not included in OPEC are the US, Russia, Britain, and Norway, but the US is a net importer, and the others do not contribute much to the open world market. OPEC tries to keep oil prices high by keeping production within limits, assigning a production quota to each member. There is always a temptation for producing countries to cheat on the quotas assigned to them by the cartel, especially if they have urgent needs for cash. Cheating is particularly easy on the international oil market. Only the meters on the oilfield pumps and pipelines, and the tanker operators, can keep track of volumes of crude oil, and once on the high seas or into the network of international pipelines, oil quickly loses all traces of its country of origin. With the cooperation of distributors and marketers, any country can pump more than its quota, more or less with impunity.

Add both written and visual information to your concept map. Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply. Oil in Southwest Asia Why is oil economically important? Global demand for oil by consumers Who is OPEC and what do they do? Why are chokepoints important in this region? Oil-producing nations use money to develop infrastructure, agriculture, and education. Organization … Suez Canal … Strait of Hormuz …

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?

1. What would happen to oil consuming countries if these chokepoints were closed? (Think about the USA) ADD the answer to these questions to your web. 2. What would happen to oil producing countries if these chokepoints were closed? (Think about Saudi Arabia/Kuwait)

Add both written and visual information to your concept map. Why is oil/petroleum a strategic commodity? A resource so important, people will go to war to get a steady supply. Demand for oil can lead to? Oil in Southwest Asia Why is oil economically important? Global demand for oil by consumers Who is OPEC and what do they do? Why are chokepoints important in this region? Oil-producing nations use money to develop infrastructure, agriculture, and education. Organization … Suez Canal … Strait of Hormuz …

Demand for oil can lead to ? Positive – Economic growth for oil producing countries. Negative – Imported oil can cause inflation in consumer countries (prices of everything goes up). If prices continue to go up, consumer countries develop alternative fuels/energy. ADD THIS INFO TO YOUR WEB.