How do gas stations decide how much to charge for gas?

It depends on how much oil costs.

Who decides the price for crude oil?

Organization of the Petroleum

Exporting Countries

What is OPEC?

OPEC is an organization that represents 11 countries that produce oil.

OPEC decides how much oil these countries will produce and how much they will sell the oil for.

1st OPEC conference in 1960. There were originally 5 members of OPEC. Today there are 11.

Members of OPEC have over ¾ of the world’s oil

Supply and Demand

Supply Demand

How much of something there is

How many people want to buy something

Supply

How much of something there is

OPEC controls ¾ of the supply of oil in the world

Demand

How much of something people want We have learned that there is a big demand for oil

for transportation, energy, and making goods like plastic, paint, Styrofoam and Air conditioners, ammonia, anti-histamines, antiseptics, artificial turf, asphalt, aspirin, balloons, bandages, boats, bottles, bras, bubble

gum, butane, cameras, candles, car batteries, car bodies, carpet, cassette tapes, caulking, CDs, chewing gum, cold, combs/brushes, computers, contacts, cortisone, crayons, cream, denture adhesives, deodorant, detergents, dice, dishwashing liquid, dresses, dryers, electric blankets, electrician’s tape, fertilisers, fishing lures, fishing rods, floor wax, footballs, glues, glycerin, golf balls, guitar strings, hair, hair colouring, hair curlers, hearing aids, heart valves, heating oil, house paint, ice chests, ink, insect repellent, insulation, jet fuel, life jackets, linoleum, lip balm, lipstick, loudspeakers, medicines, mops, motor oil, motorcycle helmets, movie film, nail polish, oil filters, paddles, paint brushes, paints, parachutes, paraffin, pens, perfumes, petroleum jelly, plastic chairs, plastic cups, plastic forks, plastic wrap, plastics, plywood adhesives, refrigerators, roller-skate wheels, roofing paper, rubber bands, rubber boots, rubber cement, rubbish bags, running shoes, saccharine, seals, shirts (non-cotton), shoe polish, shoes, shower curtains, solvents, spectacles, stereos, sweaters, table tennis balls, tape recorders, telephones, tennis rackets, thermos, tights, toilet seats, toners, toothpaste, transparencies, transparent tape, TV cabinets, typewriter/computer ribbons, tyres, umbrellas, upholstery, vaporisers, vitamin capsules, volleyballs, water pipes, water skis, wax, wax paper

Oil and Everyday Life

Supply and Demand

How do you think that OPEC can affect the price of oil?

OPEC OPEC tries to release just

the right amount of oil each year. This is controlling the SUPPLY of oil.

Controlling the supply helps keep the price of oil high. All OPEC countries sell oil for the same price.

Many countries around the world buy their oil from OPEC countries.

Pie Chart/Graph

Bar Chart with World Map

Why are some arrows thicker than others?

What does the direction of the arrows mean?

Which area of the world exports the most oil?

• From what countries does the United States get oil?

Questions to think about…

OPEC decides how much money its members can sell oil for. How does this help its members?

Why would a country want to be a member of OPEC?

Why would a country NOT want to be a member of OPEC?

More questions to think about…

Some Americans do not like that we buy so much oil from OPEC countries. They want us to produce more of our own oil or to find other forms of energy.

What do you think?

Advantages and Disadvantages of Economic Unions

Advantages More efficient Access to bigger

markets Better access to

resources Bigger influence

Disadvantages Can have too much control of product & price Hurts countries who are not members Sometimes difficult to agree on policies

Other Economic Unions

The European Union (EU) Made up of 27 European countries

North American Free Trade Agreement (NAFTA) USA, Canada, and Mexico

Association of Southeast Asian Nations (ASEAN) 10 countries in Southeast Asia

Organization of the Petroleum

Exporting Countries

Review

What is OPEC?

OPEC is:

OPEC decides:1st OPEC conference in 1960. There were originally 5 members of OPEC. Today there are 11.

an organization that represents 11 countries that produce oil.

how much oil these countries will produce and how much they will sell the oil for.

Members of OPEC have ______ of the world’s oil

over ¾

Supply How much _______________________

OPEC controls ¾ of the supply of oil in the world

Demand How much ______________________ We have learned that there is a big demand

for oil for transportation, energy, and making goods like plastic, paint, styrofoam and many everyday items.

of something there is

of something people want

Supply and Demand

OPEC OPEC tries :

Controlling the supply:

Many countries around the world buy their oil from ______ countries.

to release just the right amount of oil each year. This is controlling the SUPPLY of oil.

helps keep the price of oil high. All OPEC countries sell oil for the same price.

OPEC

Advantages and Disadvantages of Economic Unions

Advantages Disadvantages More efficient Access to bigger

markets Better access to

resources Bigger influence

Can have too much control of product & price

Hurts countries who are not members

Sometimes difficult to agree on policies

Other Economic Unions

The European Union (EU) Made up of 27 European countries

North American Free Trade Association (NAFTA) USA, Canada, and Mexico

Association of Southeast Asian Nations (ASEAN) 10 countries in Southeast Asia

Assignment

1. Students need to create a bar graph (hand drawn or using Microsoft Excel) showing oil reserves for each of the OPEC members.

2. Students should include the percentage of oil reserves/production in the U.S.

3. Then, students create 3 questions that can be answered using the information in the graph they created.

4. Students are to exchange charts and questions with another student in the group and answer the student created questions.

5. Finally have each group select one question to share with the class. All groups should present one question to the class.

6. After all groups present, have students discuss and predict on what might happen if OPEC did not exist and if nations had to start using their oil reserves.

ELPS-S/W: Contextualized Grammar Instruction (I, A)Students will use a variety of sentence structures and words to write and answer questions on the bar graphs they created.