How Much Oil and Gas Is Contained in the South China Sea?

Feb 28, 2021 | Ethen Kim Lieser
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Stretching from Singapore and the Strait of Malacca in the southwest to the Strait of Taiwan, the South China Sea long has been considered one of the most important trade routes in the world.

The vast sea is also known to be rich in resources that can help meet the quickly rising energy demands of nearby countries.

According to the U.S. Energy Information Agency, it is estimated that the South China Sea holds about fourteen trillion barrels of natural gas and sixteen to thirty-three billion barrels of oil in proved and probable reserves—most of which are situated along the margins of the South China Sea rather than under the long disputed islets and reefs.

Despite what seems to be high figures, the exploitable oil, in fact, makes up only a tiny percentage of the global supply.

“(It) would account for about one year of China’s daily consumption if it magically dropped into the Chinese market tomorrow,” Gregory Poling, a senior fellow for Southeast Asia and director of the Asia Maritime Transparency Initiative at the Center for Strategic and International Studies, told the National Interest.

“The gas is more substantial, but it is only commercially viable if it is piped to the nearest coastlines for use. So, the stuff nearest Vietnam isn’t useful to anyone but Vietnam, and the same for the Philippines, Malaysia, and Indonesia.”

Although international disputes regarding the South China Sea often make headlines, Poling added that there likely aren’t any significant global energy-related implications for the United States or other Western nations.