OIL CRISIS PPT

WARM-UP 

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What countries produce nearly half of the world’s oil?

How did OPEC inflate the price of gas in 1973?

Answer: 1. Saudi Arabia, Iran, Kuwait, & Iraq 2. By placing an embargo on the export of oil to those countries who supported Israel.

OIL CRISIS What would happen if there was no more oil???

What are three uses of oil (petroleum)?

What is OPEC? 

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Organization of Petroleum Exporting Countries Started in 1960 - Oil rich nations joined together Original members: Iran, Iraq, Kuwait, SaudiArabia, Venezuela

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Joined OPEC later: Qatar, UAE

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Why would they join together?

Who is the US likely to side with in war involving these nations? Why?

OIL CRISIS OF 1973 – WHY DID IT HAPPEN??  OPEC

would decide the price and amount of oil.  President Nixon showed his support of Israel by giving them $ 2.5 billion worth of arms (weapons)  OPEC nations retaliated against those nations supporting Israel by putting an embargo on oil shipments.  EMBARGO

– a type of trade barrier in which a government places restrictions on imports and exports of certain goods.

 Result

– the price of gasoline shot way up as its supply went down, leading to shortages.

WHAT WAS OPEC’S POINT? They wanted to get the attention of the international community that was supporting Israel.

Add these terms: Trade

Barriers: are limits set on imports (products coming into a country).

Tariff:

goods.

Quota:

it is a tax on certain imported

is a barrier set by the government limiting the number of a certain product that can be imported.

How do higher gas prices impact a country?

WHAT IT WAS LIKE IN 1973

WHAT’S THE DIFFERENCE BETWEEN PRIMARY AND SECONDARY PRODUCTS? PRIMARY PRODUCT – a raw material use to manufacture other products.  Example: date palms, wood, gold, diamonds, coal, petroleum, natural resources and other fossil fuels.  SECONDARY PRODUCT – a product manufactured (made by machinery/man) from a raw material.  Example: syrup, paper, bronze, petrochemicals, medicines, etc. 

IN OUR WORLD, WHAT ELSE IS PETROLEUM USED FOR? 

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When petroleum is refined, its various chemical parts are separated and some become gasoline, some asphalt, and other parts become the raw materials for plastics and rubber for tires and many more things. Examples of what can be obtained from petroleum: crude oil, natural gas, and/or viscous or solid forms Fuels - like gasoline, diesel, propane (many people use propane to heat their homes), heating oil

Americans consume petroleum products at a rate of three and a half gallons of oil per day each. But as you can see from this chart petroleum is not just used for fuel!!

One 42-gallon barrel of oil creates 19.4 gallons of gasoline. The rest (over half) is used to make things like: Solvents

Diesel

Motor Oil

Bearing Grease

Ink

Floor Wax

Ballpoint Pens

Football Cleats

Upholstery

Sweaters

Boats

Insecticides

Bicycle Tires

Sports Car Bodies

Nail Polish

Fishing lures

Dresses

Tires

Golf Bags

Perfumes

Cassettes

Dishwasher

Tool Boxes

Shoe Polish

Motorcycle Helmet

Caulking

Petroleum Jelly

Transparent Tape

CD Player

Faucet Washers

Antiseptics

Clothesline

Curtains

Food Preservatives

Basketballs

Soap

Vitamin Capsules

Antihistamines

Purses

Shoes

Dashboards

Cortisone

Deodorant

Footballs

Putty

Dyes

Panty Hose

Refrigerant

Percolators

Life Jackets

Rubbing Alcohol

Linings

Skis

TV Cabinets

Shag Rugs

Electrician's Tape

Tool Racks

Car Battery Cases

Epoxy

Paint

WHERE HAS THE OIL GONE? PROJECTED LIFE OF OIL RESERVES BY COUNTRY:

LESS THAN 10 YEARS

LESS THAN 50 YEARS

LESS THAN 100 YEARS

UNITED STATES CANADA UNITED KINGDOM INDONESIA* NORWAY EGYPT ARGENTINA AUSTRALIA ECUADOR

CHINA NIGERIA* ALGERIA* MALAYSIA COLOMBIA OMAN INDIA QATAR* ANGOLA ROMANIA YEMEN BRUNEI

SAUDI ARABIA*

RUSSIA IRAN* VENEZUELA* MEXICO LIBYA* BRAZIL AZERBAIJAN TRINIDAD

WHAT WILL IT BE LIKE IN THE YEAR 2175? 

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YOUR ASSIGNMENT IS TO CREATE A MIND MAP OF WHAT THE WORLD WOULD BE LIKE IF WE RAN OUT OF PETROLEUM. THINK ABOUT HOW YOUR DAILY LIFE WILL BE AFFECTED?

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WHAT WILL THERE BE LESS OF?

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WHAT WILL THERE BE MORE OF?

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WHAT WILL WE DO DIFFERENTLY?

HEAVIER CONTAINERS (GLASS, METAL, ETC

NO PLASTICS

NO DELIVERIES

NO TRUCKS

IT IS THE YEAR 2175 THERE IS NO OIL/PETROLEUM

ALTERNATE FORMS OF FUEL DISCOVERED

NO CARS THAT USE GASOLINE

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