CHINA-SOUTH CHINA SEA
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A report in OilPrice.com on November 26, 2014, reveals that recent satellite imagery confirms China is conducting significant land reclamation operations in the Spratly Islands in the South China Sea (SCS). The islands serve as a tangible marker in these seas and have seen activity by the South China Sea nations. China’s most recent undertaking in the Spratly island chain is not their first – the last 18 months have already seen three reclamation projects. However, at more than 3,000 meters, the Fiery Cross Reef is China's grandest venture yet and plans are for an airstrip and harbor, both capable of supporting military hardware. The Philippines, Malaysia, and Vietnam already operate airstrips in the Spratlys, but can only support smaller, prop-based aircraft. (Comment: The Energy Information Administration estimates that the SCS holds approximately 11 billion barrels (bbl) of oil and 190 trillion cubic feet (Tcf) of natural gas. That estimate jumps to as much as 22 bbl of oil and 290 Tcf of natural gas according to a U.S. Geological Survey study. Chinese National Offshore Oil Company (CNOOC) is perhaps the most optimistic and estimates undiscovered resources of oil and gas in the SCS total 125 bbl and 500 Tcf respectively. The SCS nations have so far been relatively successful drilling in their near-offshore waters. Malaysia and Thailand for example, have created Joint Development Agreements to expedite production without addressing territorial disputes.)
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