Wednesday, April 3, 2013

The disputed South China Sea areas probably have a few conventional oil and natural gas resources

In some countries, southwest of Taiwan, Singapore, extending from northeast of the South China Sea territorial claims to portions of the conflict. Spratly Islands and the Paracel Islands, two of the most controversial areas (see islands in dark blue on the map below). However, unlike in other parts of the South China Sea, a large oil and natural gas in these areas (conventional) resources are not considered to hold. United Nations Convention on the Law of the Sea under the ownership of the islands habitable exclusive access to energy resources of a country can extend to the environment.

Map of South China Sea oil and natural gas proved and probable reserves

Analysis of discovered oil and natural gas in many areas including uncontested parts of the South China Sea, close to the coastal countries near the disputed islands shows. Industry sources in areas near the Spratly Islands proven and probable reserve of oil and natural gas, almost nearby. We recommend at least 100 billion cubic meters. No less natural gas and oil in the territory of the Paracel Island.

In total, the South China Sea, proven or probable reserves of 11 billion barrels of oil and natural gas is rated as 190 trillion cubic feet. These levels are not in Mexico, Russia (see the figure below), including proven natural gas reserves in Europe, similar to the amount of two-thirds of proven oil reserves.

share of world proved oil and gas reserves for select regions

The South China Sea, the sea and the competition with the claims of ownership over resources, is a critical way to world trade, and in particular hydrocarbons, a potential source of natural gas.Singapore, and Taiwan Strait, north-south-west of the Straits of Malacca, extending the South China Sea is one of the world's most important trade routes. Rich in marine resources, and important strategic and political importance.

Area Paracel and Spratly Island chains, with the majority of the several hundred small islands, rocks, and reefs contains. Most of these islands are partially submerged land masses and shipping hazards not suitable for settlement are a little bit more. For example, less than 3 square miles of land area covers a total of Spratly Islands.

share of estimated world undiscovered conventional oil and gas resources

Demands and resources of the sea surrounding the islands of the sea, some neighboring countries declare ownership. The borders of the Gulf of Thailand and the South China Sea, although it is not part of a technical, disputes this property is surrounded by the Gulf and resources.

Asia's strong economic growth in the region, the demand for energy increases. Organization for Economic Cooperation and Development (OECD) in Asian countries other than the U.S. Energy Information Administration (EIA) projects on the total consumption of liquid fuels about 20 percent of world consumption in 2008, growing 2.6 percent increase in the annual growth rate of 30 percent of world consumption by 2035. Similarly, natural gas consumption in non-OECD Asia by 2035 from 10 percent in 2008 to 19 per cent of world gas consumption, will grow by 3.9 percent annually. EIA expects China to account for 43 per cent growth.

Southeast Asia, domestic oil production forecast to stay flat or decline in consumption increases with the countries of the region will look for new sources of energy to meet domestic demand. A particularly preferred in China, promote the use of natural gas as an energy source, and 10 percent to 3 percent by 2020, increasing the share of natural gas in the energy mix set an ambitious goal. Domestic production of the South China Sea area, creating an incentive to fix the major parts, offers the potential for a major natural gas discoveries.Reserves and resourcesEIA South China Sea oil and proven and probable reserves of approximately 11 billion barrels of natural gas estimated to contain 190 trillion cubic feet. Conventional hydrocarbons, mostly living in the territory of undisputed.Because the six exploration and territorial disputes in South China Sea is difficult to determine the amount of oil and natural gas. Sea uncontested parts of the most current set of discovered fields in the coastal countries close to the beach. EIA natural gas reserves in the South China Sea oil reserves of about 11 billion barrels (bbl) and 190 trillion cubic feet (TCF) is estimated to be. These figures make it a high-end proven and probable reserves are estimated to represent close to them. Energy consultancy Wood Mackenzie, for example, the sea of ​​oil equivalent of proved oil and gas reserves are estimated to contain only 2.5 billion barrels.

Extracted and probable reserves, in addition to hydrocarbons, the South China Sea can be added to underexplored areas. U.S. Geological Survey (USGS), the World Petroleum Resources Assessment Project, South-East Asia in 2010, in various geological provinces analyze the potential for undiscovered conventional oil and gas fields. Working USGS estimates (as-yet-undiscovered resources are not included in the Gulf of Thailand 5 and 22 billion barrels of oil and 70 to 290 trillion cubic feet of natural gas can be located anywhere, including the South China Sea is an important area and other areas adjacent to the South China Sea). How he would have to extract them economically uncertain, because these additional resources are currently not taken into account commercial reserves.

USGS assessment did not examine the entire area, as can be large undiscovered. In November 2012, China National Offshore Oil Corporation (CNOOC), although not confirmed by independent studies department this figure, 125 billion barrels of oil and 500 trillion cubic feet of undiscovered natural gas reserves estimated sources.

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