July 19, 2012

Rocking the Boat in the Potentially Energy Rich South China Sea

Note: This post originally appeared on the Choke Points blog at ConsumerEnergyReport.com on July 2, 2012.

Beijing is flexing some more muscle to protect its energy interests in the South China Sea.

Last week, China began combat-ready patrols in the waters around the potentially resource rich Spratly Islands that both China and Vietnam have disputed claims to. And on Friday, China Daily reported that Beijing may develop a military presence in Sansha – a newly incorporated city located on one of the disputed Paracel Islands that was stood up to administer Chinese authority over the country’s South China Sea territories. (The city was established in response to a recent Vietnamese law that claimed sovereignty over the Paracel and Spratly Islands.)

The deployment of combat-ready patrols and discussions of developing forces at Sansha comes on the heels of an announcement from the China National Offshore Oil Company (CNOOC) that it will accept bits from foreign energy companies to explore and develop nine new blocs of the South China Sea that fall within Vietnam’s 200-nautcial mile Exclusive Economic Zone. (See the map here.) It is unlikely, though, that foreign energy companies will cooperate with CNOOC in these disputed blocs given the amount of risk the companies would have to assume in operating there. Regardless, Beijing is putting itself in a better position to protect its energy interests: “the announcement of these blocks reflects another step in China’s effort to strengthen its jurisdiction over these waters,” according to MIT Professor M. Taylor Fravel.

Making a Play for Resources

This recent activity joins a string of other incidents by China to protect its claims to the region’s potential hydrocarbon resources. Estimates of oil and natural gas in the South China Sea vary widely, from U.S. estimates of 28 billion barrels of oil to Chinese estimates of 213 billion barrels of oil. Yet no country knows what really lies beneath the seabed. Officials in Beijing appear to be placing bets that the South China Sea could turn out to be a “second Persian Gulf,” driving up strategic competition over potentially energy rich territory. But for years, efforts to conduct surveys to produce better measurements of the region’s resources have been impeded by Chinese vessels obstructing survey ships and others conducting seismic measurements.

Continue reading at ConsumerEnergyReport.com.  

Photo: The Paracel Islands. Courtesy of flickr user Nicolas Lannuzel. 


    • 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