U.S. hydrocarbon estimates imply a maximum of $8 trillion worth of oil and gas in the region, explaining part of the strategic divergence of the two superpowers.
Journal of Political Risk, Vol. 6, No. 1, January 2018
Oil rig. China’s largest offshore oil and gas producer CNOOC Ltd. announced on July 3, 2015 that its Xingwang deep-sea semi-submersible drilling platform started drilling at 1,300 meters underwater in Liwan 3-2 gas field in the South China Sea. Source: Pxhere.
Anders Corr, Ph.D. Publisher of the Journal of Political Risk
China’s estimates of proved, probable and undiscovered oil and gas reserves in the South China Sea imply as much as 10 times the value of hydrocarbons compared with U.S. estimates, a differential that has likely contributed to destabilizing U.S. and Chinese interactions in the region. While China estimates a total of approximately 293 to 344 billion barrels of oil (BBL) and 30 to 72 trillion cubic meters (TCM) of natural gas, the U.S. only estimates 16 to 33 BBL and 7 to 14 TCM. Considering that the inflation-adjusted value of oil vacillated between approximately $50 and $100 per barrel (in 2017 prices) since the mid-1970s, U.S. estimates imply a hydrocarbon value in the South China Sea between $3 and $8 trillion, while Chinese estimates imply a value between $25 and $60 trillion. In addition to other factors, China’s greater dependence on oil imports and higher estimates of hydrocarbons in the South China Sea have driven it to invest more military resources in the region. An overly economistic approach by the Obama administration probably led the U.S. to allow China’s expansion in the South China Sea too easily.
Thomas Hegghammer of the Norwegian Defence Research Establishment recently found that most terrorists originating in the West (Europe, Australia, or the US) conduct their terrorism in conflict zones such as Iraq or Afghanistan. These terrorists are defined as “foreign fighters”. When these foreign fighter veterans return to the West, they are more likely to complete attacks, which are more likely to be lethal (American Political Science Review, volume 107, no. 1, Feb 2013, “Should I stay or should I go? Explaining variation in Western Jihadists’ choice between domestic and foreign fighting.”)
As the wars in Iraq and Afghanistan wind down, we can expect countervailing effects on terrorism in the West. On the one hand, there presumably will be less reason to conduct terrorism, as terrorists use these wars as justification for their actions. On the other hand, foreign fighter veterans will be returning to the West, increasing the quantity, militancy, and experience of the pool of potential domestic terrorists. New justifications for terrorism — for example Western intervention in Mali and Syria — can always be found by those so inclined.