Oil Riches Languish on China’s Doorstep

To China, the world’s biggest energy consumer, another Saudi Arabia of oil may lie beneath the ocean to its south. Escalating regional tensions mean large-scale drilling may be slipping further into the future.

The South China Sea may hold 213 billion barrels of oil, or 80 percent of Saudi Arabia’s reserves, according to Chinese studies cited in 2008 by the U.S. Energy Information Agency. The world’s second-largest economy claims “indisputable sovereignty” over most of the sea, including blocks off Vietnam that Exxon Mobil Corp. (XOM) and Russia’s Gazprom OAO (GAZP) are exploring.

The South China Sea has been in dispute for many years now. Realistically, given the size and power of China, all of South East Asia must comply to their demands, as China will eventually control the oil. Given the size and need for energy, this will be exploited to its fullest potential.

The timing of this discovery could not come at a worse time. Just as people are beginning to take peak oil seriously, and have become aware of the necessity to start living off of clean energy sources; the (soon to be) worlds' only super power, and current exporter of all things crap, will have its energy needs met for the foreseeable future.

This will only prolong the global agony and melt down, and will give everyone a new pie to fight over.

Let the rape of the planet continue...

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reply to post by ztruthseeker


Time of this discovery? ... Umm .. it's been known for a very, very long time about the oil in the South China Sea. It's the main reason that we support Taiwan because of the 200 mile maritime territorial claim each nation has.. Taiwan, the Philippines, Malaysia and Vietnam all have territory over the SCS. and China's main claim is a clump of uninhabited islands.

Oil and Natural Gas was discovered in the 80's, possibly the 70's.. the largest single reserve of oil was discovered in preliminary drill tests in 2002.