Oil - Geog

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  • Oil Production and consumption around the world
    • What is the pattern of global oil production and consumption?
      • The USA has less than 5% of the world's population but consumes 25% of the world's oil - making USA the largest consumer in the world
      • Saudi Arabia, Iran and Iraq are among the largest producers of oil in the world - together about 65% of the world's potential oil reserves lie in the Middle East
    • future political threats to the global supply and consumption of oil?
      • Oil supply from countries in the Middle East (Saudi Arabia, Iran, Iraq..) rely upon peaceful relations between these Middle Eastern suppliers and those buying oil
        • These Middle Eastern countries formed a special group called 'OPEC' - they decide the price of the oil together so the world doesn't take advantage of them              -making OPEC very powerful
    • reasons for variation in global supply and consumptionof oil
      • The USA currently stands as the largest global economy as it is built on the idea of high consumption
        • the USA has the world's largest market for air travel
        • They are worried about OPEC (12 countries grouped together) as they might raise prices too highly
          • OPEC is a threat for the USA and many other MEDCs who rely on OPEC for their oil imports

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