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Thread: #US says #China is blocking $2.5 trillion in #SouthChinaSea oil and gas qz.com/1694322/south-…
Tensions surrounding the South China Sea have always been largely about oil & natural gas. But it’s often been argued that the strategic shipping lanes carrying Middle East oil to East Asia are what really matter, whereas the sea’s own energy resources are relatively unproven.
That argument has become a bit less tenable. This week, the US State Department used blunt language regarding China’s unsettling actions within Vietnam’s exclusive economic zone (EEZ), which include ongoing seismic surveys by a Chinese vessel protected by armed escorts.
Under international UN rules, resources within the zone belong to Vietnam, but China’s “nine-dash line”—a vague, discredited borderline used by Beijing to claim nearly the entire sea overlaps with it. It also overlaps with the EEZs of Philippines and Malaysia.
In recent years, China has repeatedly intimidated Southeast Asian nations and the foreign firms with whom they’ve partnered out of joint energy deals in the areas of overlap. It aims to secure exclusive access to such arrangements for its own oil giants.
One exception allowed for now is Vietnam’s current drilling projects with Russian oil firms, including Rosneft and Gazprom, with Beijing disinclined to confront Moscow, an otherwise increasingly useful ally on the geopolitical stage.
This week’s State Department release emphasizes the value of the sea’s largely untapped oil and gas reserves, and the US’s interest in having its own oil companies involved in joint projects with Southeast Asian nations. The Aug. 21 statement reads in part:
China’s actions undermine regional peace & security & impose economic costs on SE Asian states by blocking their access to $2.5 trillion in unexploited oil resources. US companies are world leaders in extraction of oil resources, including offshore & in the South China Sea.
The United States therefore strongly opposes any efforts by China to threaten or coerce partner countries into withholding cooperation with non-Chinese firms, or otherwise harassing their cooperative activities.
Early next month, the US will conduct its first-ever combined maritime exercise with the 10-member Association of Southeast Asian Nations, aimed at creating “maritime security building” and involving “prevention and suppression of illegal activities in the seas.”
China, for its part, is better able to support and resupply its intimidating sorties around the sea thanks to the militarized islands it’s controversially built upon reefs in recent years.
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