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Oil Companies Shun South Chinese Sea As Geopolitical Tensions Rise
zerohedge.com / by Ryan Opsal via OilPrice.com on 01/04/2016 14:00
The South China Sea is continually paraded as a region rich in oil and gas deposits; however, no one really knows what’s there with any degree of accuracy. Furthermore, these possible deposits are shrouded in conflict that will not abate anytime soon, and will most likely worsen with an intensification of the security competition between China and the United States along with its regional allies, which is tightly related to these disputes.
The available exploration information in the South China Sea is either limited or old. So, there are assumptions, but evidence is shaky. The EIA estimates there may be nearly 11 billion barrels of oil and 190 trillion cubic feet of natural gas in proved and probable reserves all based on 2013 estimates and of course, 2013 prices. Not only were these reserves thought to be somewhat inflated at the time, but given the lower pricing currently available, this is potentially far less.
Much of these proved and probable reserves also reside in uncontested areas of the South China Sea, making for safer, albeit potentially difficult investments. This is an important distinction to make since we should be focusing on the contested areas of the South China Sea when referring to the current feasibility of oil and gas operations in the South China Sea. The core disputes in the South China Sea revolve around the Spratly and Paracel Islands, along with various shoals throughout the region typically located closer to the Philippines.
The post Oil Companies Shun South Chinese Sea As Geopolitical Tensions Rise appeared first on Silver For The People.
Source: http://silveristhenew.com/2016/01/04/oil-companies-shun-south-chinese-sea-as-geopolitical-tensions-rise-2/
