1. Black Gold
How has the discovery of oil affected the region of the Middle East and its people?

2. From what we have already learned, which countries do you think has the most oil reserves?
Iraq
Iran
Kuwait
Bahrain
Saudi Arabia
United Arab Emirates

3. Where does oil come from???
Oil comes from underneath the ocean and is formed when animals die and enormous heat and pressure turn them into oil and gas over MILLIONS of years.

4. So, is all of the world’s oil in the Middle East?

5. Proved reserves (bbls)
Rank
Country
Proved reserves (bbls) 1.
Saudi Arabia
264.3 2.
Canada
178.8 3.
Iran
132.5 4.
Iraq
115.0 5.
Kuwait
101.5 6.
United Arab Emirates
97.8 7.
Venezuela
79.7 8.
Russia
60.0 9.
Libya
39.1
10.
Nigeria
35.9
11.
United States
21.4
12.
China
18.3
13.
Qatar
15.2
14.
Mexico
12.9
15.
Algeria
11.4
16.
Brazil
11.2
17.
Kazakhstan
9.0
18.
Norway
7.7
19.
Azerbaijan
7.0
20.
India
5.8

6. So, why don’t we use our own oil?

7. Why don’t we use our own oil??
The amount of crude oil produced in the United States has been getting smaller each year.   However, the use of products made from crude oil has been growing, making it necessary to bring more oil from other countries.  We do not produce enough to meet our demand. About 59.5 percent of the crude oil and petroleum products used in the United States comes from other countries.

8. When was oil discovered in the Middle East?
For seven years, William D'Arcy drilled well after well in Persia, now known as Iran, looking for oil. With his funding running low, and his employers getting quite impatient, D'Arcy drilled one last well and hit a gusher on May 26, The rest is history. .

9. T/F With the discovery of oil came instant wealth.
Six years after the discovery of vast oil reserves in the Middle East, Darcy’s oil Company almost went out of business. Why?
Lack of customers. At this time in history, only ships and electric power plants ran on coal, and cars were owned only by those with significant wealth.
Winston Churchill saw the value of running ships on oil and WWI changed the demand for petroleum.

10. Car Trivia
By the 1920’s cars become common place for the average working man.
Henry Ford’s Model T become one of the first affordable automobiles. As technology improved, the price continued to drop

11. Today
$20,000
Today
$2800

12. Today The WORLD WIDE demand for oil is HIGH! Transportation
Power Plants burn oil and Natural gas to generate electricity
Plastics, medicines, fertilizer, carpet, and thousands of other goods.

13. So what is OPEC?
In 1960, an Organization of Petroleum Exporting Countries. This group added new members over time, and today they are able to control the price of the world’s oil.
Middle East Members
Iraq
Kuwait
Saudi Arabia
Qatar
UAE
Iran
Algeria
Libya
Other Memebers:
Indonesia
Nigeria
Gabon
Angola

14. With so many countries having oil, how much power does OPEC really have??

16. How has the distribution of oil affected the development of the Middle East?
Oil money has allowed:
The development of NEW industries
Improved infrastructure: roads, housing, communication
Better schools
Improved Healthcare
Money to improve agriculture
The overall standard of living has improved in the oil rich nations of the Middle East

17. Before Oil
Nomadic Lifestyle
Qatar
Dubai

18. After Oil

19. However….
In some cases, oil money is used for personal gain, production of weaponry, debauchery and evil.
Muammar Gaddfi: Dictator of Libya Lived a lifestyle of wealth while the Libyan people often did not even have running water.
Saddam Hussein: Dictator of Iraq 1979 – Spent oil money on weapons and war, not to improve the life of the Iraqi people.

20. Negative Impacts of Oil
Causes major conflicts. Many wars have been fought over oil in the Middle East
Persian Gulf War
Pollution
Drilling often lead to pollution, including water pollution
Iraq used pollution as strategy for fighting
Oil money had been used to fund war and/or terrorism

21. Mad Money in Dubai…

22. World’s Tallest Building Twice the size of the Empire States Building

23. Indoor Ski Slope

24. Most Expensive Hotel in the world

25. Man Made Islands

26. Money to the Extreme.. United Arab Emirates Dubai
Click here to see video clip