Oil is a non-renewable resource = a natural resource that is not replaceable after it is removed
Why is oil such a valuable resource? Because you can’t make more oil and we need it for so many things
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
Monopoly = when one person/country/company controls a particular item or product and therefore controls its price
Oligopoly = when a small group of people/companies/countries controls a particular item or product and therefore controls its price.
World oil use is increasing faster than the U.S.’ because they are catching up technologically (becoming more modern)
OPEC = Organization of Petroleum Exporting Countries ► 11 countries from around the world Venezuela, Algeria, Nigeria, Libya, Saudi Arabia, Kuwait, Iran, Iraq, Qatar, United Arab Emirates, Indonesia Venezuela, Algeria, Nigeria, Libya, Saudi Arabia, Kuwait, Iran, Iraq, Qatar, United Arab Emirates, Indonesia
What region of the world are most OPEC countries located in? The Middle East
Oil exporting countries organized to produce an oligopoly: Increasing the price of oil when it wants by decreasing the oil supply
Even though the U.S. has oil, we are not members of OPEC Why isn’t the U.S. a member of OPEC? We do not export our oil
Much of our oil is used domestically or is saved as a reserve supply in case OPEC lowers the world’s supply of oil.
Where does the US get most of its oil? Not the Middle East! 1. Canada 2. Mexico 3. Saudi Arabia 4. Venezuela 5. Nigeria 6. Angola 7. Iraq 8. Algeria 9. United Kingdom 10. Brazil Source: http://www.consumerenergyreport.com/re search/crude-oil/where-the-us-gets-its-oil- from/
► ► What percentage of our oil is imported from the Middle East? 16% ► ► What percentage of our oil comes from Canada and Mexico? 49% 49%