black gold, white gold petrochemicals and agribusiness in the 21 st century
TRANSCRIPT
Black Gold, White Gold
Petrochemicals and Agribusiness in the 21st century
Oil: Black gold
Post WWII• WWII showed the future needed gasoline
• Machines replaced hand labor in manufacturing
• Transportation now depended on gasoline
Oil now meant power
• Nations with oil reserves that had been undeveloped now found themselves with unlimited wealth
• Competing against each other to sell their oil was destructive
• To protect themselves, many nations in the Middle East created a treaty organization, called....
OPEC
OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
Why use OPEC oil?
Three main reasons
Environmental effects
• Environmental effects of their oil industry are contained in OPEC member countries
Not here
• Environmental accidents occurring in the member nations are their responsibility
Not Ours
Costs
• Expenses for development, safety, training, drilling, transporting and exporting the crude oil are paid by the member nations
Not US
Increased Trade
• Crude Oil is a trade good
• Finished gasoline, often refined in Texas, is also a trade commodity.
• This interdependence helps stimulate and balance USA economy
Problems from OPEC
OPEC was created in the 1970’s to control the supply and price of oil
OPEC Oil Crisis
• OPEC decided to cut of the oil supply to the USA in 1973 because USA supported Israel, which many Arab countries despise.
• An energy crisis resulted, where the prices of oil and gas rose dramatically and gas was rationed
Positive Results?
• Many Texas oil companies started drilling more wells in Texas
• This created jobs in the oil industry where many Texas gained valuable skills used now all over the world
Gulf War
• Both Gulf Wars caused major concerns over the safety of Middle East Oil
• Alternative sources of power-including domestic oil field drilling-became more important
Alternatives to oil?
• Nuclear energy
• Wind power
• Hydroelectric power
agribusiness
How farming has changed
Modern Methods
• Large machines used for both planting and harvesting
• Farm workers rarely own the land, but are employees of a company
• Several farms provide the produce used by a company
Crops
• Cotton-North Texas
• Citrus Fruits and vegetables- Rio Grande Valley
• Fruits, nuts and wine- Hill Country
future
• Texas Business reports: COLLEGE STATION – Texas agricultural losses due to the 2011 drought reached a record $7.62 billion, making it the most costly drought in history, according to updated totals by Texas AgriLife Extension Service economists.