OIL PRICES

What countries produce nearly half of the

worlds oil?

1.

Saudi Arabia
Iran
Kuwait
Iraq

2.
3.
4.

OPEC

Organization of Petroleum Exporting Countries

Started in 1960 - Oil rich nations joined together

Original members: Iran, Iraq, Kuwait, SaudiArabia, Venezuela

Countries like UAE and qatar joined in the

years that followed

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

How do higher gas

prices impact a
country?

WHAT IT WAS LIKE IN 1973

FACTORS THAT DETERMINE OIL PRICES

The price of a barrel of oil is highly dependent on
both its grade, determined by factors such as its
specific gravity or API and its sulphur content, and
its location.
Other important benchmarks include Dubai, Tapis,
and the OPEC basket.

PRICE HISTORY BEFORE 2003

A low point was reached in January 1999 of 17
USD per barrel, after increased oil production from
Iraq coincided with the Asian Financial Crisis, which
reduced demand.
Prices then increased rapidly, more than doubling
by September 2000 to $35, then fell until the end of
2001 before steadily increasing, reaching $4050
by September 2004.

PRICES AFTER 2003-2008

In the year 2004 the price of oil rose to above $40
and then $50.
By august 11 2005 the price of oil had exceeded
$60. After which it further increased to $75 in the
middle of 2006.
Prices then dropped back to $60/ barrel in the early
part of 2007 before rising steeply again to
$92/barrel.
On February 29, 2008, oil prices peaked at $103.05
per barrel.
On November 6 the price of oil closed at $60.

PRICES DURING 2009-2010

In January 2009, the oil prices rose temporarily
because of tensions in the Gaza strip.
From mid January to February 13, oil prices fell to
near $35 a barrel.
During the year 2010 the prices of oil had started
off with an initial drop from $88 to $70 mainly
because of the European economic crisis leading to
less demand. Prices rose back to $90/barrel in
December 2010.

2011-2012
In late February 2011 political turmoil in Egypt,
Libya, Yemen and Bahrain drove oil prices to $95/
barrel.
As a result Saudi Arabia had promised to
compensate for these countries in order to try and
stabilize the prices, but unfortunately the sour type
oil that they produced was unable to replace the
sweet type oil produced by Libya.
In 2012, events such as Irans illegal nuclear
program and the European debt crisis the prices
stayed in the $100 / barrel region fluctuating by
$15-$30 throughout the year.

FUTURE PREDICTIONS
Oil prices could go to $200 $300 a barrel if the
world's top crude exporter Saudi Arabia is hit by
serious political unrest, according to former Saudi
oil minister Sheikh Yamani.
Seismic Micro-Technology conducted a survey of
geophysicists and geologists about the future of
crude oil out of which 50% predicted that oil prices
would be in the region of $100-$150 in the next five
years.

WHERE HAS THE OIL GONE?

PROJECTED LIFE OF OIL RESERVES BY COUNTRY:

LESS THAN 10 YEARS

LESS THAN 50 YEARS

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

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

LESS THAN 100 YEARS

SAUDI ARABIA*

RUSSIA
IRAN*
VENEZUELA*
MEXICO
LIBYA*
BRAZIL
AZERBAIJAN
TRINIDAD

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

THANK YOU