What is more, not all oil is created equal, at least as far as cost is concerned. Some analysts project that the price of a barrel of oil from deep water wells could be as much as four times that of a barrel produced from conventional reserves like those in the Middle East. Thus the cost of extracting South China Sea oil could be much more expensive than fuels derived from algae, other biomass or even dirtier sources like coal and natural gas, making deep-seabed oil less strategically important than those other sources.
Whether those hydrocarbon resources in the South China Sea are strategically important or not, the perception in Beijing seems to be that they are vital. It’s no surprise, then, that China has taken an increasingly zero-sum approach to securing access to those resources, becoming more aggressive with neighbors that it suspects are trying to exploit oil and natural gas on their own. In that light, even Beijing’s push for joint development could be taken as an effort to slow roll other countries’ efforts while its own Chinese National Offshore Oil Company gets the edge in developing those resources first.
But Beijing’s efforts could all be for naught if energy trends continue to develop as projected, and especially if the South China Sea turns up dry (so to speak). As a result, China’s continued assertiveness in the South China Sea could compromise its claim to a peaceful rise and reinforce the call from countries like Vietnam and the Philippines for the United States to step up its military presence in the region.
Perhaps the most important step the United States can take in the near term to diffuse tensions in the region is to promote the message that those energy resources aren’t as valuable as Beijing believes. At the same time, the United States should encourage Southeast Asian countries to lead a multilateral effort through partnerships like the Asia-Pacific Economic Cooperation to survey fossil fuel resources, putting to bed once and for all the uncertainty around how much oil and natural gas really lies beneath the ocean floor. Maybe then Beijing will realize that its bet in the South China Sea is one it can’t afford to make.
Will Rogers is a research associate at the Center for a New American Security, a non-partisan national security and defense policy research institution in Washington, DC, where he studies the intersection of natural resources and national security policy.
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Alex
The saddest truth from this whole thing: the majority of Chinese population has been systematically brainwashed to the point of no possible reversal. It is sad to see so many PRC netizens, devoid of historical facts and current news, made claims that are laughed at by people around the world. I pray for your souls.