''Though estimates may vary widely,there's a lot of oil and gas sitting under the South China, the U.S.
EIA estimates the area's resources at 11 billion barrels of crude oil and 190 trillion cubic feet of natural
gas. China's Ministry of Land and Resources own estimates are of between 169 billion and 220 billion barrels of oil and 565trillion cubic feet of gas. Whatever the ultimate amounts, those vast un-tapped hydrocarbon reserves promise an economic boon to the region if commercially developed. But that's a big "if".
At issue are long-lasting territorial disputes over the Spratly and Paracel Islands.No less than five countries-China, Vietnam,the Philippines,Malaysia and Brunei-lay claim to the Spratlys. Sovereignity over the Paracels is a relatively simple affair,beign contested by just three counries-China, Taiwan and Vietnam.China claims maps and other historical documents trace its sovereignity over these islands to the second century BC Han Dynasty.
Investment bank Credit Suisse doesn't believes the U.N. Tribunal for the Law of the Sea can resolve this territorial dispute.
China would be the most interested in developing tthese resources,but it seems unlikely to happen anytime soon. Last year CNOOC,China state owned oil company, tried to auction nine oil and gas blocks,none of which where located off the contested Spratlys. The move angered Vietnam and put off international companies,which did no submit a single bid. Moreover, repeated military confrontations between China and the Philippines,suggest that a compromise isn't soon in the offing''.
Source: The Financialist, Credit Suisse
EIA estimates the area's resources at 11 billion barrels of crude oil and 190 trillion cubic feet of natural
gas. China's Ministry of Land and Resources own estimates are of between 169 billion and 220 billion barrels of oil and 565trillion cubic feet of gas. Whatever the ultimate amounts, those vast un-tapped hydrocarbon reserves promise an economic boon to the region if commercially developed. But that's a big "if".
At issue are long-lasting territorial disputes over the Spratly and Paracel Islands.No less than five countries-China, Vietnam,the Philippines,Malaysia and Brunei-lay claim to the Spratlys. Sovereignity over the Paracels is a relatively simple affair,beign contested by just three counries-China, Taiwan and Vietnam.China claims maps and other historical documents trace its sovereignity over these islands to the second century BC Han Dynasty.
Investment bank Credit Suisse doesn't believes the U.N. Tribunal for the Law of the Sea can resolve this territorial dispute.
China would be the most interested in developing tthese resources,but it seems unlikely to happen anytime soon. Last year CNOOC,China state owned oil company, tried to auction nine oil and gas blocks,none of which where located off the contested Spratlys. The move angered Vietnam and put off international companies,which did no submit a single bid. Moreover, repeated military confrontations between China and the Philippines,suggest that a compromise isn't soon in the offing''.
Source: The Financialist, Credit Suisse
