Oil as a Strategic commodity ‡ ³Strategic Commodity´ is a commodity that is indispensable and an essential part of any nation¶s success ‡ The list of battles fought for oil and the casualties that resulted from those battles was long ‡ majority of the world¶s oil reserves to have an enormous amount of influence on the global economy ‡ The organization that has been able to take control of this market is OPEC .

Worlds Oil Reserve¶s .

Kuwait. Iraq. intergovernmental Organization. ‡ OPEC has maintained its headquarters in Vienna since 1965 ‡ OPEC was founded to unify and coordinate members' petroleum policies . created at the Baghdad Conference on September 10±14. 1960 ‡ The five Founding Members were by Iran. Saudi Arabia and Venezuela.OPEC ‡ The Organization of the Petroleum Exporting Countries (OPEC) is a permanent.

Oil Embargo .

.

HISTORY AND KEY EVENTS IN THE US OIL INDUSTRY .

HYPOTHESIS ‡ Economies of OPEC countries are highly dependent on petro-dollars received from U. and readily available.S imports approx 42.5% of its requirement of oil from OPEC. clean. U. U. and Louisiana which it is conserving for future use. In case of any oil embargo by OPEC. U. scalable. ‡ ‡ . California.S has its own oil reserves in Alaska. Texas. In the coming decades.S.S can rely on its own reserves. Electricity is cheap. a shift from cars powered by petroleum fuels to ones powered by electricity (whether plug-in hybrid electric vehicles or pure electric vehicles) will have a significant impact on the oil market.

but also has the biggest share of unused oil production capacity ‡ Thus.ROLE OF SAUDI ARABIA ‡ Saudi Arabia not only is the world¶s largest exporter of oil. the political stability and future of Saudi Arabia¶s oil industry remain paramount to forecasting trends in the oil economy of the Middle East in the next 15 to 20 years. .

produced 52 percent of the worldµs crude oil. Middle Eastern oil-producing countries formed the Organization of Petroleum Exporting Countries.S. with Israel against Egypt and Syria.HISTORY AND KEY EVENTS IN THE US OIL INDUSTRY ‡ The oil industry began in the United States in 1859.S. .S. the U. ‡ In 1950. the Yom Kippur War broke out. In 2007 about 7 percent. ‡ Then in 1973. oil consumption rose by 80 percent while oil production declined 35 percent ‡ In 1950. the Arab OPEC nations responded by cutting off all oil sales to the United States ‡ When OPEC resumed selling its oil to the United States in 1974. the oil-producing countries began to raise prices. ‡ Between 1965 and 2007. the U. was exporting 50 percent of its oil to Europe ‡ In 1912. When the United States sent massive military aid to Israel. in 1960. began importing more oil than it exported.S. or OPEC. Then. U. with the discovery of oil in the hills of Pennsylvania ‡ By the 1870s and 1880s. the U. the price had quadrupled.

. non-OPEC countries increased their production of oil by 20 percent. ‡ 1979 was a turning point for OPEC.‡ In late 1979. and gasohol. nuclear power. increased sharply. such as solar power. ‡ Research into other forms of energy. the price jumped again as a result of an Iranian revolution. OPEC countries received $280 billion in oil revenue ‡ Within five years. In that year.

.

.

U.S CONSUMPTION OF FOREIGN OIL .

CONCLUSION ‡ Although as of now the US imports its major percentage of oil from OPEC but still the economies of OPEC are highly dependent for the revenue they receive from the US in the form of petrodollars. and Louisiana which it is conserving for future use. Further electrification of vehicles and use of flex fuel will have an impact on the oil demand. ‡ "Oil makes and breaks nations. Texas. . California. wind and solar will play an important role in future. In case of any oil embargo by OPEC.S can rely on its own reserves. Other sources of energy such as nuclear." That is common shorthand for 21st century history in the petroleum industry. U.S has its own oil reserves in Alaska. U. In the long run US dependency of oil on OPEC will decrease due to the availability of other sources of energy.