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With a population of roughly 1.3 billion, China is the most inhabited country in the world. As the world’s largest consumer of energy, China’s expanding influence on global energy markets is profound.

As China looks to meet its growing energy demand, one of the major offshore resources it lays claim to is the South China Sea. Political and regulatory circumstances make ownership rights to the body of water a hotly contested debate, however there is no doubting its potential as a large offshore energy resource.

The South China Sea covers 1,400,000 square miles and stretches from China to Indonesia and from Vietnam to the Philippines. This vast body of water is a rich natural resource containing oil and natural gas. A US Energy Information Administration report estimates proven and undiscovered oil reserves are as high as 213 billion barrels of oil. This highly optimistic forecast would equate to more than 60 years of Chinese demand.

The South China Sea provides an important avenue for global trade infrastructure, as it is one of the world’s most prominent shipping lanes, allowing more than $5 trillion in ship-borne trade annually. Additionally, the South China Sea is a thriving marine ecosystem that is heavily fished for local seafood markets, providing roughly 10% of the world’s catch.

Before this vast natural resource can produce energy for global energy markets, the ownership rights need to be clarified. The South China Sea represents one of the world’s most exciting natural resource opportunities, in addition to being a key component of global trade infrastructure.

South China Sea Fast Facts:

• 26.7 billion Barrels of Proven Oil Reserves
• 279.1 trillion Cubic Feet of Proven Gas Reserves
• 6,078.9 thousand Barrels per Day in Oil Production
• 8,293 billion Cubic Feet per Day of Gas Production
• 1/3 of the world’s shipping travel through the South China Sea
• 10 percent of the world’s seafood market is caught in the South China Sea

Resources:
http://www.eia.gov/countries/regions-topics.cfm?fips=SCS
http://www.reuters.com/article/2012/08/01/us-southchinasea-china-idUSBRE8701LM20120801
https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html 
http://www.bloomberg.com/news/2012-07-12/asean-fails-to-reach-accord-on-south-china-sea-disputes.html
http://www.eia.gov/countries/cab.cfm?fips=CH
http://www.globalsecurity.org/military/library/news/2012/05/mil-120516-voa03.htm

When oil production capabilities began to slow in the 1970s, powerhouse energy corporations knew that the industry was in a race to find the next big energy source to meet rising world-wide consumption. However, it wasn’t until horizontal drilling and hydraulic fracturing, or “fracking,” came into the picture in the early 2000s that shale gas rose to the forefront of public knowledge.

Shale gas made up 34 percent of U.S. natural gas production in 2011. The U.S. Chamber of Commerce estimates that share will grow to 43 percent by 2015 and 60 percent by 2035.

On July 26^th, 2012, in response to shale’s growth as an oil and natural gas resource, the US Chamber of Commerce launched a new program called “Shale Works for US” to educate the general public on the economic advantages shale gas could provide to the country as a whole. According to campaign, the shale gas industry supported 600,000 jobs in 2010 and is set to grow to nearly 870,000 in 2015 if it continues its upward trend.

Despite the potential for economic revitalization, fracking faces criticism from environmentalists. Sustainability advocates warn of the potential impact on water systems and the environment.  While industry experts are still researching fracking’s potential environmental impact, it remains one of the largest obstacles in the shale movement.

Combined with smaller stores of natural gas around the globe, the global total of minable shale gas has reached more than 187 trillion cubic meters. The Chinese Ministry of Land and Resources recently reported the following countries as having the highest reserves of minable shale gas:

• Chine
• The United States
• Argentine
• Mexique
• Afrique du Sud

With untapped energy fueling the fire, and the potential for shale to be a game changer for both the energy industry and the economic futures of the United States and other world countries, shale is certain to remain in the public eye for the foreseeable future.

Resources:
http://www.ogj.com/articles/2012/07/us-chamber-of-commerce-launches-national-shale-energy-campaign.html
http://www.reuters.com/article/2012/07/26/oil-europe-refiners-idUSL6E8IQ90620120726
http://www.chinadaily.com.cn/china/2012-07/30/content_15632035.htm
http://www.bloomberg.com/news/2011-11-03/shale-gas-reserves-have-potential-to-reignite-u-s-economy.html
http://www.energyxxi.org/us-chamber-commerce-promote-shale-boom-campaign