Oil Discovered! Oil was first discovered in Persia (Iran) in In 1927, oil was struck in Kirkuk, Iraq. Oil was first discovered in Persia (Iran) in In 1927, oil was struck in Kirkuk, Iraq.

TERMS ASSOCIATED WITH OIL: natural resources non-renewable resources fossil fuels crude oil oil reserves Gas Petroleum

What are natural resources? Natural resources are the raw materials a country has that make life and production of goods possible.

What is a non-renewable resource? A non-renewable resource is a resource that takes so long to form that it can’t be replaced. Oil, which takes millions of years to form, is just such a resource.

What is a fossil fuel? Oil and natural gas are fossil fuels. Fossil fuels were created when plants and animals that lived centuries ago decayed underground.

What is crude oil? Crude oil is petroleum as it comes out of the ground and before it has been refined or processed into useful products.

What are oil reserves? Oil reserves refer to oil that has been discovered but remains unused in the ground.

Southwest Asia has been transformed by oil. W orld’s largest known oil reserves W orld’s largest known oil reserves More than half of the world’s proven crude oil reserves More than half of the world’s proven crude oil reserves large reserves of natural gas large reserves of natural gas Saudi Arabia (the largest country in Southwest Asia) has approximately 1/4 of the world’s known oil reserves Saudi Arabia (the largest country in Southwest Asia) has approximately 1/4 of the world’s known oil reserves Kuwait (a small country) has 1/10 of the world’s oil reserves Kuwait (a small country) has 1/10 of the world’s oil reserves

…and new There are many oil rigs around the SW Asia

Saudi Oil Fields & Refineries

Many countries depend on fuels to meet their energy needs for transportation, electricity, plastics, & medicines Oil money has been used to better the lives of the people in Southwest Asia Roads have been paved and modern buildings have been built Improved medical care has helped people to live longer

Oil Has Not Improved Life for All 1. Yemen is one of the 20 poorest countries in the world (low oil reserves and large population). 2. Iraq has the second largest oil reserve but a low HDI. a. Saddam Hussein used oil money to build an army. b. Buying weapons and fighting wars has used up their money.

Oil is a non-renewable resource that will eventually run out.

Persian Gulf Oil Exports (2003)

World Oil Reserves

What is OPEC? OPEC stands for Organization of Petroleum Exporting Countries OPEC stands for Organization of Petroleum Exporting Countries It was created at the Baghdad Conference in September It was created at the Baghdad Conference in September Five Founding Members: Five Founding Members: Iran, Iraq, Kuwait, Saudi Arabia and Venazuela Iran, Iraq, Kuwait, Saudi Arabia and Venazuela MISSION: To achieve stable oil prices that are fair and reasonable both for oil producers and consumers

Where does our oil/petroleum come from?

OPEC can’t completely control oil prices and supplies. OPEC can’t completely control oil prices and supplies. 1. There are many non-OPEC oil producers that compete with OPEC. 2. OPEC members don’t always work together as a unit, and sometimes under cut each other.

What is this political cartoon saying?