The United States and Oil

How has America’s growing oil dependency affected US foreign policy toward the Middle East?

History of oil discovery• Oil discovered in US in 1800s• Oil exporting peak of US in 1930s• After WWII US changed

from oil exporting to oil importing country

• Middle East started production of oil right after WWII

Where is oil in the Middle East?

OPEC

• Founded in 1960 to protect and determine the price of oil

• Organization of Petroleum Exporting Countries

• Founded by Iran, Iraq, Saudi Arabia, Kuwait, Venezuela

What has recently happened to oil prices?

• 1970 oil rose $6 to $12 per barrel (doubles in Ford’s 4 years as president). (a barrel = 42 gallons)

• April 19, 2007: $72/barrel • May 20, 2008: $129/barrel; national average per

gallon = $3.80 (when Bush took office…– Gas was $1.47)– May 8, 2011 national avg. $4/gallon

• World Gas prices as of May 19, 2008:– U.K.: $8.28– Russia: $3.06– Netherlands: $9.52– Saudi Arabia: $0.45

• April 2012 average = $3.95 for regular

• (up 6% from last year)

Historically how has oil affected American foreign policy?

• 1953- CIA coup in Iran

• 1973- oil embargo after Yom Kippur War

• 1991- Persian Gulf War

• Current- friendship with Saudis

2011 Chart (whitehouse.gov)

• US has less than 2% of the world’s oil reserves

• In 2011 the US relied less on oil than any of the past 16 yrs.

2006

• Oil producers

• consumers

• Oil suppliers to the US

• http://www.nytimes.com/interactive/2007/11/06/business/20071107_WINNERSLOSERS_GRAPHIC.html?ref=oilpetroleumandgasoline#