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(the main source of government Pevenuej (2) 2.9 million barrels a day - Irag oil

ID: 113203 • Letter: #

Question

(the main source of government Pevenuej (2) 2.9 million barrels a day - Irag oil export (averencen At current prices, what is the total With the current Iraqi population, and the revenue seems to "vanish" (include this aspect) approximate annual incom in 2013) annual oil-revenue of Iraq? fact that 50% of the what is the e per-Iraqi (per-person) from oil? (3) Hidden costs The Persian Gulf region (Arabia, Kuwait, Iraq, Iran, etc.) produces about 20 million barrels of oil per day. Since 2000, the average USA involvement in the region costs about $250 billion per year (minimum; includes adjacent Syria and Afghanistan). A stated purpose of USA military presence is "to stabilize the flow of oil from the region". Therefore, what is this "extra annual security cost per barrel"? (4) Shiite versus Sunni The conflict between these philosophies has been and will be a major factor in stability of many Middle East nations and conflicts between them; therefore affecting oil production/prices. What are the main differences, and Why do these two religious groups dislike each other? Iplease be concise]

Explanation / Answer

Q. 2) As per the given information, we have-

Daily production= 2.9 million barrels per day

Annual production= 29 million X 365 (no. of days)= 10585000000 barrels

Crude Oil proces released by OPEC for (25 September 2017)- $ 51 per barrel.

Annual revenue = Price per barrel X total annual production= 10585000000 X 5100000 = $ 539835000000 or $ 539 billion

half of the revenue is lost

Hence final revenue= Annual revenue/2= 539 billion/2 =$ 269 billion

Iraq's population (as per world bank figures)= 37.2 million

Per capita income from oil export= Final revenue/ Population= 269 billion/ 37.2 millions = $ 7255.8

Qu. 3)

Using the same formulae as used in pervious problem-

Daily production= 20 million barrels

Annual production= 20 million X 365= 7300000000 or 7.3 billion barrels

Total annual price = 7300000000 X 51 (using previous reference)= $ 372300000000 or $ 37 billion

Total annual cost = $ 250000000000

THerefore, total additional annual expenses per barrel= Total espenses/ Annual production= $ 250 billion/ 7.3 billion barrels= $ 34.25

For Q 4)

1              Issue of Succession of Prophet

Shiites believe the Prophet Mohammed should have been succeeded by his son-in-law, Imam Ali, and leadership should pass through the prophet’s descendants.

Sunnis don’t believe the leadership of the Muslim world should necessarily pass through hereditary succession.

2              Imam Ali and His Family

Shiites observe Imam Ali’s and his descendents’ persecution and to revere his family, making annual pilgrimages to shrines to the Imam and his 11 descendants.

Sunni’s don’t

3              The Sunni Majority

Sunnis greatly outnumber Shiites, constituting nearly 90% of the global community of Muslims. The governments of some Persian Gulf countries—including Saudi Arabia, Bahrain and the United Arab Emirates—are Sunni, while Iran and Iraq are ruled by Shiites. Syria’s regime is Alawite, a Shiite offshoot.

4              Styles of Prayer

Sunnis cross their arms, while Shiites keep their arms by their sides.

Sunnis observe five daily prayer sessions; Shiites squeeze them into three.

5              Organization

Shiites are governed by hierarchical structures, follow living religious leaders. Sunnis follow scholarly texts penned by past religious leaders.

These difference and mutual intolerent attitudes have led them to nurse hostile attitudes towards each others.