Today – one colored pencil

OPEC

Open up book to Page 670 (Oil Embargo) 5 volunteers to read for extra credit.

Date Change for Makeup Work – May 17th

OPEC Organization of Petroleum Exporting Countries

Definition Fixes the price of oil on the international

markets

Determines the price of oil, by the barrel, sold by member countries

This helps to ensure that they will not try to undersell one another

Members Nations – use one colored pencil to label & color the member nations

Original Members Iran Iraq Kuwait Saudi Arabia Venezuela (is the only

nation not in the Middle East)

Joined Later Qatar United Arab Emirates

Map on Page R55

1973 Egypt and Syria attacked Israel The goal of this attack was to force the

Jews out of the Middle East and To have the Middle East controlled by

Muslim nations

Who would the United States support in a war between Syria, Egypt & Israel?

U.S. supports Nixon showed his support of Israel by

giving them $2.5 billion worth of arms (weapons)

How would you respond if the U.S. gave your enemy weapons?

OPEC’s Response The OPEC nations retaliated by putting an

embargo on oil shipments.

What is an embargo?

Embargo -Complete or partial refusal to trade

with another country

How will this impact the price of

oil?

Gas prices Prior to the embargo – 25 cents/gallon

Gas prices Prior to the embargo – 25 cents/gallon

After the embargo – just over $1 per gallon

4xs – do the math

Gas prices Prior to the embargo – 25 cents/gallon

After the embargo – just over $1 per gallon

4xs – do the math If this were to happen today - price of gas

$3.71

$3.71 x 4 =

$14.84 per gallon

DecadeAverage Price(per gallon)

1950- 1959 $0.19 to $0.26 1960 – 1969 $0.31 to $0.35 1970 – 1979 $0.36 to a little less than $1 1980 – 1989 About $1 1990 – 1999 About $1.10 2000 – 2009 $1.65 to $4

Energy Crisis Gas Stations often ran out of gas Closed on Sundays Refused gas to non-regular customers Determined when people could buy gas

based upon their license plate number

How would higher gas prices effect this country?

How can Americans conserve energy?

McDonalds Even the largest fast food restaurant in the

United States used the gas crisis in their commercials

A signal that this is part of American pop culture

http://www.youtube.com/watch?v=PF-NIIXDffE

Supply-Side EconomicsAlso known as . . .

Trickle Down Economics Reaganomics

This concept is still relevant today. The candidates for President (2012) are discussing it as options to help the economy.