September 12, 2012

How to Neutralize Energy Competition in the South China Sea

This post originally appeared on the Choke Points blog at Consumer Energy Report.com on September 11, 2012.

During her visit to the Asia Pacific last week, Secretary of State Hillary Rodham Clinton spoke to the dispute over the South China Sea, arguably one of the region’s most intractable challenges that, left unmanaged, could uproot stability in East Asia. Those countries at the heart of the dispute — particularly China, Vietnam and the Philippines — need to “establish rules of the road and clear procedures for peacefully addressing disagreements,” Secretary Clinton urged.

High Stakes at Sea

The dispute is complex. States ringing the sea are becoming increasingly assertive in their claims, driven by concerns of nationalism, sovereignty, and even the need to stake claims to the region’s lucrative (but dwindling) fish stocks.  And then there are the potential petroleum resources. Estimates of the region’s energy potential ranges widely, according to the independent U.S. Energy Information Agency: U.S. estimates suggest the region could contain roughly 28 billion barrels of oil; while Chinese estimates are much more optimistic, projecting more than 200 billion barrels of oil beneath the sea.

Despite much uncertainty about the size of the region’s oil and natural gas resources, countries in the region are increasingly behaving as though access to those potential petroleum reserves is zero-sum — a winner take all and leave none for the loser approach — that is pitting countries against each other to tap into those resources first. Indeed, China, Vietnam and the Philippines are actively soliciting bids from petroleum companies to explore for oil and gas in contested waters, escalating tensions and reinforcing this zero-sum perspective. This continued competition is destabilizing and countries in the region need to take efforts to tilt the balance of behavior toward cooperation so that countries across the region can benefit from the sea’s potential resource wealth.

Opportunities for Regional Cooperation

There are practical steps that countries in the region can take to, as Secretary Clinton suggested, “literally calm the waters.”

Continue reading at ConsumerEnergyReport.com

Photo: Courtesy of flickr user arbyreed.

  • Commentary
    • World Politics Review
    • February 8, 2019
    How China and the U.S. Are Competing for Young Minds in Southeast Asia

    Business leaders at the World Economic Forum in Davos last month warned that China has overtaken the United States in the development of artificial intelligence and other emer...

    By Kristine Lee

    • Commentary
    • War on the Rocks
    • September 21, 2016
    China's Artificial Islands Are Bigger (And a Bigger Deal) Than You Think

    Surely you have heard the news — China has been dredging up coral reefs and creating artificial islands in the South China Sea with the purpose of enforcing their claims...

    By CDR Thomas Shugart, USN

    • Commentary
    • The National Interest
    • August 10, 2016
    Beijing's Go Big or Go Home Moment in the South China Sea

    China is preparing for its go or go home moment in the South China Sea and it appears they have chosen the right time to make a play for regional and, ultimately, global domin...

    By Jerry Hendrix

    • Commentary
    • Foreign Affairs
    • July 22, 2016
    Parting the South China Sea

    July 12, 2016, marked a turning point in the long-standing disputes over the South China Sea. After more than three years of proceedings at the Permanent Court of Arbitration,...

    By Mira Rapp-Hooper

View All Reports View All Articles & Multimedia