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Southwest Asia and Oil

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Oil Discovered!
Oil was first discovered in Persia
(Iran) in 1908.
In 1927, oil was struck in Kirkuk,
•natural resources
•non-renewable resources
•fossil fuels
•crude oil
•oil reserves
What are natural resources?
Natural resources are the raw
materials a country has that
make life and production of
goods possible.
What is a non-renewable
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 is crude oil?
Crude oil is petroleum as it
comes out of the ground and
before it has been refined or
processed into useful
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
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:
transportation (gasoline and oil)
electricity depends on oil and natural gas to
run power plants
Southwest Asia and Oil
Oil money has been used to better
the lives of the people in Southwest
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.
Oil Has Not Improved Life for All
Per capita GDP varies greatly for
each country.
Per capita GDP is the average income of the
people in a country (GDP) divided by the
1. UAE and Kuwait have high GDP and low
population numbers. This gives them high per
capita GDP.
2. Saudi Arabia and Iran have high GDP and
high population numbers . This gives them
lower per capita GDP.
3. Bahrain has small oil reserves but high per
capita GDP because they earn money by the
processing of crude oil and development of an
international banking system.
Poor and
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
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.
OPEC can’t completely control
oil prices and supplies.
1. There are many non-OPEC oil
producers that compete with OPEC.
2. OPEC members don’t always work
together as a unit, and sometimes under
cut each other.
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.
Oil is a non-renewable
resource that will eventually
run out.
Persian Gulf Oil Exports (2003)
World Oil Reserves
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