Research - durham10

fallenleafblackbeansOil and Offshore

Nov 8, 2013 (3 years and 9 months ago)

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Focus Question:

How does oil affect Saudi Arabia?


Notes:


Good:



Oil affects Saudi Arabia’s economy by earning a lot of money and opening new jobs for
other workers in Saudi Arabia



When there is more money people live better



Oil has helped Saudi Arabia
explore new, advanced technology


Bad:



When we use oil to fuel cars and other machinery it hurts the environment and
damages the ozone layer.



When there are oil spills in the ocean near shore
it could hurt the environment and
habitat of animals.



High gas p
rices in other countries
: at the end of

2007 oil reached prices of $130

per
barrel.


Research

For millennia, Saudi Arabia’s economy depended on independent clusters of people living near
wells and oases. Most people were engaged in agriculture, including n
omads who raised
livestock by moving their animals to the areas of still scarce food made by even more scarce
rains. However, pastoral nomads’ failure to provide for their communities only with pastoral
activities forced them to create multiple resource sy
stems. They had protection services for
merchant caravans and pilgrims, control over small oases, direct cultivation. Trade was limited
primarily to camel caravans and the annual influx of pilgrims visiting the holy places in the Hijaz.
In the major cities
, such as Jiddah and Mecca, several large merchant families settled
permanently and prospered, especially after the late 1800’s development of the Hejaz Railway.

The most intense agent of change for the economy of Saudi Arabia was the discovery of huge
re
serves of oil by a United States company in 1938. At first, the newly established oil industry
had only an indirect impact on this primitive economy. The establishment of the Arabian
American Oil Company (Aramco, predecessor of Saudi Aramco) and the oil to
wns around the oil
fields triggered major changes in the economy of the kingdom, especially in the Eastern
Province. Development of the oil fields required additional construction of modern ports, roads,
housing, power plants, and water workers had to be t
rained in new skills. Also, the
concentration of oil field employees and the range of services the oil company and employees
needed opened new economic opportunities on a scale, that was, until that time unseen by
local merchants, contractors, and others.
Aramco provided technical, financial, and logistical
support to local entrepreneurs to shed the many support activities it had initially assumed. The
discovery of oil ended the kingdom's isolation and introduced new ways to organize the
production and dist
ribution of goods and services. Today Saudi Arabia thrives off of their
abundant supply of oil.


http://www.oil
-
price.net/

http://www.mmdnewswire.com/energy
-
breakthrough
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new
-
oil
-
technology
-
to
-
bring
-
hundreds
-
of
-
millions
-
of
-
dollars
-
to
-
utah
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2434.html

http://www.originoil.com/

http://www.ehow.com/how
-
does_4616883_oil
-
spill
-
affect
-
environment.html

http://www.
washingtonpost.com/wp
-
dyn/content/article/2010/04/26/AR2010042604308.html