Detailed Solution:
The correct answer is “I and III are correct”.
1) Most of the world's petroleum can be found in the Middle East, which has about 60% of the world's oil reserves.
2) While Alaska does have significant oil reserves, they are not comparable to the vast resources found in Texas. Texas is a major oil-producing state in the U.S.
3) The U.S. is a major producer of oil, but it also imports a significant amount to meet its energy demands.