1) List the percentage of oil reserves for each region of the world.

1) List the percentage of oil reserves for each region of the world

This is just another way to look at the same info - countries with lots of oil have been made larger, those with less/no oil have

been made smaller

2) Some of the countries that export a lot of oil have joined as “OPEC”

(ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES)

3) O.P.E.C. Countries control oil prices by AGREEING how much OIL to PRODUCE & SELL – reducing the supply raises the cost, increasing

the supply lowers the cost.

4) O.P.E.C. wants to KEEP OIL PRICES HIGH

• Like any business, you want to get as much as you can for the product you’re selling, so these countries try to work together rather than competing with each other.

5) O.P.E.C. wants to KEEP OIL PRICES STEADY

• OPEC Countries know that if the charge too much their customers will work harder to find alternative energy, then their oil won’t be worth as much

• They also know if the price has highs and low it hurts the whole world economy and they end up make less than they would otherwise.

6) Although OPEC countries know their prices would be higher if they all worked

together, sometimes they CHEAT on their QUOTA (agreed upon production

amounts), which CHANGES the price of oil on the WORLD MARKET.

7) The PERSIAN GULF has some of the best oil deposits, because they have a lot and the have “SWEET CRUDE” (which is easier to pump & refine than Canadian Tar Sand Oil).

8) Once the oil is EXTRACTED, it is TRANSPORTED (by pipeline or

oil tanker ships).

9) 25-33% of the world’s oil is shipped from the

PERSIAN GULF through the STRAIT of HORMUZ

10) Many PERSIAN GULF countries (Kuwait, Saudi Arabia, UAE) have a lot of OIL but not much FRESH WATER, so they rely heavily on DESALINIZATION.

11) Because the ENERGY COST of water desalinization is so high, the Persian Gulf is one of the few places in the world where it’s COST EFFECTIVE to use this TECHNOLOGY.

12) Once the oil the oil arrives, it’s REFINED into

all sorts of products.TRANSPORTATION accounts for 2/3 of oil used in the USA. The rest is used to create PLASTICS and other HOUSEHOLD PRODUCTS.

OVER A BARREL• October 4, 2010 UpFront pg 16-19

WORLD WITHOUT OIL• READ “World Without Oil”• WRITE 1-2 page story of how

your life would change if you woke up tomorrow and there was ZERO oil

Southwest Asia

This is a traditional Bedouin shelter

• 97% Urban

• Ranked 21st among affluence (level of wealth) of the 183 UN member nations

Abdullah Family from Kuwait City, Kuwait.

This is the Bedouin traditional way of cooking.

Kuwait is 91% barren desert.

Al Haggan Family Kuwait City, Kuwait:

Kuwait imports 98% of their food, and 90% of their drinking water comes from desalinated sea water.

How were the lives of many Kuwaitis been transformed?

Although Kuwaiti Citizens are generally wealthy, they rely on “guest workers” (servants) to do most of the hard labor.

Who’s Left Out?