Oil Reserves in the South China Sea

This morning we are starting something a little different with
our blog. Instead of our usual analysis, Mondays we’ll show you photos and
other images, and in this case, it’s one that speaks volumes. In fact, today’s
map holds significant importance for the week ahead because tomorrow, July 12^th the
International Tribunal for the Law of the Sea at The Hague will rule on a case
brought by the Philippines in 2013 contesting China’s maritime claims and
activity in the South China Sea.

The South China Sea is a hotly contested area with each of the
surrounding countries having a stake in the territory including China, the
Philippines, Vietnam, Malaysia and Brunei. Why is this sea so sought after?
Partially, it’s a matter of sovereignty or at least national pride. But the
region also holds millions of barrels of oil and natural gas, it’s a
competitive fishing ground, and it’s a major trade route. The map featured
today is from the US Energy Information Administration (EIA) and it shows the
location of the proved and probable reserves of oil in the South China Sea.
Additionally, our Resource Security program added the “nine dash line” in green
to show where China’s claims intersect with known oil reserves. Interestingly,
China’s claims over the Paracel and Spratly Islands as well as the sea closest
to the Philippines holds little to no known oil reserves. Alternatively, most
of China’s claims that intersect with oil reserves are near the country’s
coastline or intersects with Malaysia or Brunei’s claims. However, the
Philippines’ court case tomorrow may help its neighbors by questioning the
legality of China’s nine dash line. Some
say the court could declare the line illegal or cause China to
clarify its legal basis. The implications of the court’s ruling and China’s
response to the ruling may well set the stage for the future of the South China
Sea and its rich resources.