Importance of Oil
Geography: KS3, topic 19.1.11
Importance of Oil
Oil is a fossil fuel. Oil provides energy and raw materials for many products. Oil is vital to the world economy.
Energy source
- Oil is a fossil fuel (fuel formed from the remains of ancient plants and animals).
- Oil provides energy for transport, like cars, ships and planes.
- Power stations burn oil to make electricity.
Raw material
- Oil is refined (processed) to make many everyday products.
- Oil is used to make plastics, paints and medicines.
- Many industries depend on these oil-based products.
Global distribution
- Oil reserves (oil stored underground) are not spread evenly.
- The Middle East holds many of the world's oil reserves.
- Some countries have no oil, so they must import it.
Economic importance
- Oil exports (selling oil abroad) bring in large amounts of money.
- Oil-rich countries can use oil money to develop their economy.
- Oil prices affect countries that export and import oil.
Test yourself on Importance of Oil
Select the correct statement about oil for each pair.
Why does a country with no oil reserves need to import oil to meet its energy needs?
Global oil prices rise sharply. How are an oil exporting country and an oil importing country likely to be affected differently?