Oil: Cash Crop of the Middle East Jason Schenker Energy Economist 704.383.3695 jason.schenker@wachovia.com The Global Economy and Oil •All Ships Are Rising (The World is Growing) •World GDP Distribution •World Oil Demand Allocation •High Prices Hurt U.S. Trade Balance Growth World GDP Based on U.S. Dollar Purchasing-Power-Parity Non-G8 54% Italy 3% U.S. 21% World GDP North America 30% Other Asia 10% Europe 20% China 8% FSU 5% Global Demand for Crude in 2004