Read the info and look at the picture on the back of your notes. Complete the following on your warm-up sheet: 1. List the products that are created from oil (9 total) 2. Circle the ones that you use every day. 3. Underline the ones that you use at least once a month.

The two most valuable resources in Southwest Asia: Oil Water

Climate map of SW Asia

Precipitation map of SW Asia

Why is water important? Your body needs it! the body can survive a couple of weeks without food, but no water will kill you within a few days. You grow your food with it!

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Important sources of water in SW Asia: Tigris, Euphrates, and Jordan Rivers

Mesopotamia

What are the sources of water in SW Asia? Surface water is rare in the desert areas Only found at an oasis (area where a spring bubbles to the surface)

What are the effects of poor water supplies? Commercial farming is difficult Many people are subsistence farmers (grow enough for survival) Some people are nomadic herders (called Bedouins)

What are the effects of poor water supplies? Countries must import food Water Conflict

How can more water be made available? Desalinization – turning saltwater into freshwater by removing the salt Only wealthy countries can do this because it is very expensive: requires large amounts of power The Persian Gulf meets an estimated 60 percent of its drinking water needs through desalination.

Will desalinization work for all countries in SW Asia? No… Example: Afghanistan is landlocked, poor

The two most valuable resources in Southwest Asia: Oil Water

A little clarification…. Crude oil / petroleum – what comes from the ground (words can be used interchangeably ) Gasoline – oil is refined and turned into this Natural gas – this is a gas (you know, like the 3 states of matter) used for heating homes, etc

Major oil drilling did not occur before the 1860s. The use of oil as an energy source became necessary for industrial growth after that point. Today, we rely on oil for much of our energy needs.

Oil Exploration in the Middle East British businessman, William Knox D’Arcy discovered a large supply of oil in the Middle East in 1908, in western Iran. Founded Anglo-Persian Oil Company

Before OPEC… Oil companies would get 65% of the revenue from oil produced on land that wasn’t theirs In 1960, many oil-rich nations joined together to control the price and production of oil, as well as protect their own interests OPEC: Organization of Petroleum Exporting Countries

OPEC 5 Original Members: Iraq Iran Kuwait Saudi Arabia Venezuela (not in the Middle East) Other countries joined: Algeria, Angola, Indonesia, Libya, Nigeria, Qatar, and United Arab Emirates Total membership= 12 countries OPEC did not have much of an impact until 1973…

1973 Yom Kippur War On October 6, 1973, Egypt and Syria simultaneously attacked Israel in an effort to conquer the land and force the Jews out of the Middle East United States responds with aid for Israel Israel is able to push Arab forces out and fighting stops in November

1973 Embargo October 17, 1973 OPEC imposed an oil embargo on the United States Embargo-stop trade Reaction to US giving aid to Israel Oil: Supply ↓ Prices ↑

1973 Embargo United States reaction: Gas Stations— Ran out of gas Were closed on Sundays Selective with customers—based on license plates Maximum sale of 10 gallons per costumer The average price of a barrel of oil in 1973 was $2.70 and the average cost of gasoline at the pump about 35¢ a gallon.

OPEC Today More than ½ of the world’s known oil reserves are sitting under Saudi Arabia, Iraq, Iran, Kuwait & United Arab Emirates

OPEC countries have made significant contributions to their reserves in recent years by adopting best practices in the industry. As a result, OPEC proven reserves currently stand well above 900 billion barrels. More than three-quarters of the world’s oil reserves are located in OPEC countries

Oil & the Economy Oil wealth has helped modernize the economies of some countries in the region More than $1 trillion of construction projects is currently underway in the Persian Gulf states Dubai, UAE has one of the highest GDPs in the world

Dubai, 1990

Dubai, today

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