Role of Oil in Southwest Asia

Oil Discovered!Oil Discovered!

Oil was first discovered in Persia (Iran) in 1908.

In 1927, oil was struck in Kirkuk, Iraq.

Oil was first discovered in Persia (Iran) in 1908.

In 1927, oil was struck in Kirkuk, Iraq.

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 are oil reserves?

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

Southwest Asia and Oil

Southwest Asia has been transformed by oil.

1. This region has the world’s largest known oil reserves.

2. More than half of the world’s proven crude oil reserves lie under Southwest Asia.

3. There are also large reserves of natural gas.

…and new

There are many oil rigs around the Middle East.

1. Saudi Arabia (the largest country in Southwest Asia) has approximately 1/4 of the world’s known oil reserves.

2. Kuwait (a small country) has 1/10 of the world’s oil reserves.

Saudi Oil Fields & Refineries

Southwest Asia and Oil

Most of the world’s industrial nations depend on a steady supply of oil and natural gas.

Southwest Asia and Oil

These industrial countries depend on these fuels to meet their energy needs:1. transportation (gasoline and oil)

2. electricity depends on oil and natural gas to run power plants

3. plastics

4. medicines

Southwest Asia and Oil

Oil money has been used to better the lives of the people in Southwest Asia.

1. Roads have been paved and modern buildings have been built

2. Improved medical care has helped people to live longer.

Southwest Asia and Oil

Oil has made many people is Southwest Asia better off.

1. Life expectancy has increased by 15 years over the last 30 years.

2. Infant mortality rate (number of babies that die in their first year) has fallen.

Southwest Asia has grown rich, supplying the world’s oil needs.

However, oil is not distributed equally.

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.

Poor and Rich

Per Capita GDP does not tell the whole story.

Per capita GDP is an average wealth with some people extremely wealthy and others very poor.

Human Development Index (HDI) looks at the per capita GDP and factors like life expectancy and education.

1. Bahrain has the highest HDI, using its wealth to educate its population.

2. Bahrain provides good health care which has contributed to its low infant mortality rate.

Education in Bahrain

The Price and Flow of Oil

Oil-Exporting Countries work to control the price of oil.1. OPEC (Organization of the Petroleum Exporting Countries) was established in 1960 to control the supply and income of oil producing countries.

Here's a partial list of products with petroleum as an ingredient (this is only a small sample):

nylon zippers golf balls Teflon pansballet tights baby aspirin Formicaplastic hangers stuffed animals garden hosespantyhose band aids plungerspermanent press clothing Vaseline floor waxflip flops rubbing alcohol Plexiglasfake fur Pepto-Bismol spray paintpolyester clothing hair coloring Anti-freezeball point pens soap balloonsink cough syrup dog toyscomputer diskettes hair spray flea collarscomputers lipstick CDROMscopiers denture adhesives check book coversmagic markers trash bags shopping bagstelephones egg cartons video cassettesmicrofilm freezer bags credit cardscameras candles diceearphones wax paper watch bandsfootballs nylon spatulas linoleumknitting needles tennis racquets

Summary Much of the world’s oil is under

Southwest Asia. Oil reserves are not distributed

evenly among the region’s countries. The wealth from oil sales is not

evenly distributed among the citizens of the countries in Southwest Asia.

Foreign influence results out of a need for oil.