Oil has been around for decades, dating back to the late 1870s, when the first oil well was drilled in Titusville, Pennsylvania. Since then it has been consistently in high demand around the world and its price continues to rise to this day. Demand for oil began to increase after the automobile boom in the 20th century, when it played a critical role in fuel used in machinery during World War II. That said, many Middle Eastern countries are now home to some of the largest oil reserves in the world, including Libya, Iran, Iraq, and Saudi Arabia, to name a few. This essay will discuss how the Middle East has become largely dependent on this natural resource to maintain the economic success of the countries within it, and also how sustainable the future of the oil-based economy is. This will be demonstrated through an analysis of the Organization of the Petroleum Exporting Countries (OPEC), US relations with Saudi Arabia, the sustainability of government-funded programs in the Middle East, and the two major oil crises that occurred in the 1990s. 70. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay There are several components to analyze when talking about the Middle East's dependence on oil. They include the West's control of oil, the United States' dependence on oil, and the future of oil reserves. The goal for Europeans in the 19th century was to dominate the territory of the Middle East after hearing that the Englishman William D'Arcy had struck gold by discovering a huge oil reserve in Persia. One of the main reasons people wanted oil at the time was the fact that automobiles were in their infancy, and also the fact that most power plants were built with oil. The Europeans finally got their wishes granted with the Sykes-Picot Agreement in 1916, and soon after the United States would become a major player as well. It is important to note that the United States was interested in establishing a relationship with Saudi Arabia because it had come to the conclusion that there would be no way to surpass them in the oil sector due to the high supply in that region of the world. Eventually the United States began to realize that its oil prices were being driven down by those of the Middle East and was faced with the fact that the oil industry in its region was slowly becoming obsolete. Relations between Saudi Arabia and the United States began after the conclusion of World War II, when France and Britain lost much of their control over the Middle East due to unsustainable political and economic strategies. As a rising world power at the time, America expanded its presence in the region exponentially by establishing a strong relationship with the founder of Saudi Arabia; King Abdulaziz Ibn Saud. From 1933 onward, the two countries both maintained a warm bond with each other under President Donald J. Trump and Saudi leader Mohammed Bin Salman. According to Victor McFarland, professor at Yale University, “Saudi elites have chosen to cooperate with the United States, but only within certain limits. They viewed the United States as a strategic partner against threats from the Soviet Union or local actors such as Iraq and Iran, but they strongly opposed U.S. policy on the Arab-Israeli conflict.” Although there has been long-term success in relation to oil reserves in the Middle East, there have been predictions that this success may notbe sustainable in the near future. A situation that many economists use as an example of the failure of the oil industry would be the oil crisis of 1973, when OPEC members proclaimed an oil embargo in October of that year. “Six producing countries in the Middle East, led by Saudi Arabia, had announced a 5% cut in oil supply. They promised a further 5% reduction every month until the United States stops obstructing a comprehensive solution to the Israeli-Palestinian conflict." The embargo was an attempt to remove the United States from any type of oil-related activity in response to its involvement in the Yom Kippur War. This embargo increased the price of a barrel of oil from $3.50 in 1973 to $14.40 in 1977. Another catastrophic oil crisis occurred six years later in 1979, this time following the Iranian revolution. Labeled the “energy crisis,” this revolution lasted a year and ultimately ended with the collapse of Grand Ayatollah Shah Mohammad Reza Pahlavi. Due to the concurrence of the revolution, Iranian oil production decreased by 4.8 million barrels per day by the end of January 1979. OPEC members decided to rally around Iran with increased production of products hoping that this would have compensated for the fall of Iran. These two events demonstrated the global impact the Middle East has on the oil economy. Today, the oil-rich Middle East has begun investing in alternative sources of income, preparing for when the oil economy inevitably becomes unprofitable. As stated earlier, most of the region's oil comes from six countries; Iraq, Iran, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates. The combination of these six countries produced about 25 million barrels of oil per day in 2016. Saudi Arabia, which still derives about three-quarters of its revenue from oil, has begun to diversify its production and has worked to export minerals including aluminum and gold, with the aim of possibly replacing the oil. Besides that, they are also tending to develop renewable energy programs throughout the region. “In the oil-producing heartland of the Middle East we are seeing investment in renewable energy at truly game-changing costs,” says Adnan Amin, director general of the Abu Dhabi-based International Renewable Energy Agency (IRENA). . great changes also bring demanding challenges. Since the Middle East spent most of the 20th century in the oil industry, a big problem will arise in the near future when changes occur. Furthermore, oil-funded programs, such as free education and healthcare in Saudi Arabia, will be forced to close. With jobs lost and social benefits diminished, the changes will come at a cost. The discovery of oil in the Middle East has forever changed the landscape of the world, both geographically and economically. Most Middle Eastern countries turned to oil after its discovery, with some government programs closely financed with revenue generated by the sector. “Since the discovery of oil in the 1930s, Saudi Arabia's nomadic Bedouin tradition has been replaced by a modern lifestyle similar to that of other highly developed countries.” Along with Saudi Arabia's free healthcare and education system, the country does not require any kind of tax collection or contributions from any of its citizens. With a combination of rising costs, changing disease patterns, an aging population, demographic changes and,.