OIL CRISIS PPT

Report
WARM-UP


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?



Organization of Petroleum Exporting
Countries
Started in 1960 - Oil rich nations joined
together
Original members: Iran, Iraq, Kuwait, SaudiArabia, Venezuela

Joined OPEC later: Qatar, UAE

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?



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?


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?

WHAT WILL THERE BE LESS OF?

WHAT WILL THERE BE MORE OF?

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
MORE
PEOPLE
WALKING

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