Overview
Oil has been one of the most important natural resource of the last century. It powers almost everything including transportation, industry, and it plays a central role in modern economies and military strategy.
Since so much global trade, travel, and production depends on oil, changes in supply and demand can quickly turn into political pressure, economic crises, or strategic advantage.
Deposits
Major oil deposits are concentrated in a limited number of regions:
- Persian Gulf - Saudi Arabia, Iraq, Iran, Kuwait, UAE
- Russia - Western Siberia and Arctic fields
- North America - U.S. (Texas, Gulf of Mexico, shale basins), Canada
- North Africa - Libya, Algeria
- West Africa - Nigeria, Angola
- South America - Venezuela, Brazil
- Caspian region - Kazakhstan, Azerbaijan
Geopolitics
Oil shapes alliances, conflicts, and foreign policy. Export-dependent countries want a constant demand and stable prices, while import-dependent states fear supply disruptions and price spikes.
Since oil is such a big economic tool, in many conflicts opponents seek to destroy, sanction, or halt the supply of the enemy's oil.
