1. Oil and OPEC

2. Another name for oil is petroleum

3. Oil is a non-renewable resource = a natural resource that is not replaceable after it is removed

4. Why is oil such a valuable resource?

5. Energy use is increasing because:
More people = More energy usage
More appliances that use more energy
Large industrial energy use
“Bigger is better” and “more is better” philosophy
Leisure activities use more energy

6. Monopoly = when one person/country/company controls a particular item or product and therefore controls its price

7. Oligopoly = when a small group of people/companies/countries controls a particular item or product and therefore controls its price.

8. World oil use is increasing faster than the U. S
World oil use is increasing faster than the U.S.’ because they are catching up technologically (becoming more modern)

9. OPEC = Organization of Petroleum Exporting Countries
12 countries from around the world
Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela

11. What region of the world are most OPEC countries located in?

12. Oil exporting countries organized to produce an oligopoly:
Increasing the price of oil when it wants by decreasing the oil supply

13. Why isn’t the U.S. a member of OPEC?
Even though the U.S. has oil, we are not members of OPEC
Why isn’t the U.S. a member of OPEC?

14. Much of our oil is used domestically or is saved as a reserve supply in case OPEC lowers the world’s supply of oil.

15. Where does the US get most of its oil? Not the Middle East!
Canada
Mexico
Saudi Arabia
Venezuela
Nigeria
Angola
Iraq
Algeria
United Kingdom
Brazil
Source:

16. What percentage of our oil is imported from the Middle East?
What percentage of our oil comes from Canada and Mexico?