Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
The discovery of oil refers to finding new reserves or sources of petroleum within a country's territory. It often leads to significant economic implications due to increased revenue from oil exports.
Related terms
Resource curse: Also known as the paradox of plenty, it refers to situations where countries rich in natural resources (like oil) experience economic stagnation or even decline due to mismanagement or corruption associated with resource exploitation.
Petrostate: A term used for countries whose economy heavily relies on revenues generated from petroleum exports.
Oil dependency: When an economy becomes highly dependent on oil production and exportation, making it vulnerable to fluctuations in global oil prices.