Transcript Black Gold

Black Gold
How has the discovery of oil
affected the region of the Middle
East and its people?
In a land covered by desert and
with limited fresh water, what
does the Middle East have to
offer?
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Now take a look at the maps in
your white bucket, which
countries have the most oil
reserves?
Syria
Iraq
Iran
Kuwait
Bahrain
Qatar
Yemen
Saudi Arabia
United Arab Emirates
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.
So, is all of the world’s oil in the
Middle East?
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
So, why don’t we use our own
oil?
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. About 59.5 percent of the
crude oil and petroleum products used in
the United States comes from other
countries.
When was oil discovered in the
Middle East?
So what is OPEC?
• Organization formed in 1960 by FIVE founding
countries:
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Iran
Iraq
Kuwait
Saudi Arabia
Venezuela
• These countries were later joined by: Qatar,
Indonesia, Libya, UAE, Algeria, Nigeria, Gabon,
and Angola.
What is the purpose of
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.
What do the really do??
• Control the price of the world’s oil!!
With so many countries having
oil, how much power does OPEC
really have??
Who needs oil and why??
• The WORLD WIDE demand for oil is
HIGH!
• Developed countries depend on these
fuels for to meet energy needs
• Transportation
• Power Plants burn oil and Natural gas to
generate electricity
• Plastics, medicines, and other goods.
In 2005, developing nations used
approximately 28 Million Barrels of oil
per day for transportation alone!!
Does having oil reserves make a
county rich??
GDP of Oil Producing Countries in
Southwest Asia
30,000
25,000
20,000
15,000
10,000
5,000
0
•Gross Domestic product is the amount of goods and
services that a country can produce.
•One Key Factor that effects GDP per Capita is population
Bahrain
Iran
Iraq
Kuwait
Oman
Qatar
Saudi Arabia
Syria
UAE
Yemen
HDI: Human Development Index
HDI stands for
Human
Development
Index. It is
another way
to look at the
quality of life
by assessing
the following:
Education
Health
Statistics
GDP per
Capita
Life
Expectancy
Southwest
Asia Rank
1
2
3
4
5
6
7
8
9
Country
World Rank
Bahrain
Kuwait
Qatar
UAE
Oman
Saudi Arabia
Iran
Syria
Yemen
40
44
47
49
74
77
101
106
149
A country with oil does not
always have a good economy.
For example, Yemen has some oil, but their GDP is
around $500.
Where does the oil money
go?
• Pave roads
• Construct modern buildings
• Medical Care (higher life expectancy)
increased by 15 years .
• Infant mortality rate dropped by 2/3
For Example…
• Bahrain does not have the most oil reserves or
the highest GDP, it uses it wealth to educate its
people. All young people, boys and girls go to
school.
• Bahrain also invests in health care. Due to this,
their infant mortality rate has dropped to one of
the lowest in Southwest Asia.
• However, Saudi Arabia’s royal family has
become very wealthy from oil money. In 2002,
the royal family spent $185 million preparing
their vacation home for guest.
• The rest of Saudi Arabia does not live quite as
well as the royal family.
So, people with oil cannot be
poor???
• Yemen is one of the 20 poorest countries
in the world. Its population is about 80%
larger than Saudi Arabia’s, its oil reserves
is equal to only 1% of Saudi’s oil reserves.
• The amount of oil produced in Yemen has
not been enough to pull its people out of
property.
In fact….
• Other Southwest Asian countries have made a
lot of money from oil, but it has not been used to
improve the lives of its people.
• Iraq has the second largest oil reserves in the
Middle East, but Saddam Hussein controlled
Iraq’s oil income from 1979-2003.
• This money was used to build an army, buying
weapons, and fighting wars.
• Very little money went to make the life better for
ordinary people.
Do you know this guy??
What did Moammar Gadhafi
do with Libya’s oil money??
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
• May be used to fund war and/or terrorism
Mad Money in Dubai…
World’s Tallest Building
Twice the size of the Empire
States Building
Indoor Ski Slope
Hotel
Constant Construction
Most Expensive Hotel in the
world
Man Made Islands
Money to the Extreme..
United Arab Emirates
Dubai
Click here to see video
clip
Dubai Inc., Part 2