top of page
Writer's pictureCosDream News

Why does China continue to buy oil everywhere despite having vast reserves in the South China Sea?

Oil, as an important finite resource, has played an indispensable role in the 20th and 21st centuries, often hailed as "liquid gold."


Today, China has developed into the world's second-largest economy, firmly positioned as an industrial power. Notably, large oil fields have been discovered in regions such as the South China Sea and Daqing, with the capability for independent extraction.

However, as a major oil-consuming country, why does China not fully develop its own oil fields in areas like the South China Sea and instead choose to import large quantities of oil globally? This question has sparked widespread reflection.


In the vast expanse of the South China Sea, countries like the Philippines and Vietnam act like mischievous children, occasionally stirring up disputes, while the United States plays the role of "world police," eager to create chaos and complicate the situation in the South China Sea.

Such behavior is clearly not merely to trouble China; the underlying motivations are more complex.


The South China Sea issue has long surpassed simple territorial and sovereignty disputes, becoming a sensitive topic involving rich oil resources.


As the world's largest oil consumer, the United States is constantly attentive to resource-rich regions, especially the South China Sea, which is referred to as the "second Persian Gulf," making it a coveted target.

The rich oil and gas resources in the South China Sea have attracted the envy of many countries. In recent years, nations like Vietnam, Malaysia, the Philippines, Brunei, and Indonesia have actively developed the oil and gas resources in the South China Sea, with production levels that are even comparable to China's Daqing oil field.


Oil is not only the lifeblood of modern national development but also an indispensable energy source in various fields such as power generation, heating, and transportation. Additionally, it serves as a crucial raw material for chemical products and synthetic materials.

Therefore, the supply of oil is directly related to a country's energy security, industrial production, and economic development. For a rapidly rising economy like China, the demand for oil is steadily increasing.


Since 2017, China has become the world's largest importer of crude oil. Although it has participated in oil field development projects in countries like Iraq and Iran, importing oil remains an important way to meet domestic energy needs.

However, oil imports also bring numerous challenges. On one hand, fluctuations in international oil prices directly impact China's energy expenditures and economic stability.


On the other hand, an excessive reliance on imported oil could lead to a lack of diversification in energy supply, thereby increasing the risks to energy security.


So, given the abundant oil resources in the South China Sea, why doesn't China increase its extraction efforts?


According to geological surveys, the number of oil basins on the continental shelf of the South China Sea has exceeded ten, with reserves estimated at about 2.3 to 3 billion tons, an astonishing amount that accounts for a quarter of the world's oil reserves.

In addition to oil, the South China Sea also harbors rich natural gas and methane hydrate resources, both of which are extremely valuable energy sources in today's world.


Natural gas is widely used in residential life and industrial production, while methane hydrate is dubbed the "energy of the future," with its enormous reserves and potential making the energy prospects of the South China Sea quite promising.


Despite the rich oil resources in the South China Sea, the difficulty of extraction is significant.


The South China Sea is an important maritime traffic route for China, with tens of thousands of merchant ships passing through each year, transporting various goods and energy.


The circulation of merchant ships is not only a crucial pillar supporting China's economic development but also ensures the smooth operation of global trade.

Therefore, oil extraction in the South China Sea must fully consider its impact on shipping, ensuring that extraction activities do not disrupt normal shipping order.


Moreover, the fishing resources in the South China Sea are abundant, with local fishermen relying on fishing for generations. Oil extraction may negatively impact marine ecology, and if not managed properly, it could damage fishing resources and threaten the livelihoods of fishermen.


In deciding whether to develop oil resources in the South China Sea, we face significant challenges and decisions.


On one hand, these resources are vital for the country's energy security and economic development.


On the other hand, shipping and fishing are also important components of the national economy that cannot be easily sacrificed. This dilemma leaves us in deep contemplation.

Many oil fields in the South China Sea are located in deep waters, adding complexity to extraction efforts.


The variability of the deep-sea environment imposes higher requirements on extraction technology and equipment.


At the same time, because the South China Sea is relatively far from China's mainland, establishing extraction bases not only requires substantial investment and technical support but also necessitates overcoming a series of unimaginable difficulties.


For instance, deep-sea extraction requires advanced drilling technology and equipment, which typically needs to be imported or developed independently.


Additionally, issues such as accommodation and supply for personnel must be resolved, presenting further challenges to extraction operations.

Although China's oil reserves are still insufficient compared to oil-rich nations like those in the Middle East, the figure of 3.85 billion tons should not be underestimated.


Converted to barrels, that is approximately 2.82 billion barrels, which is sufficient to meet the basic energy needs of China, with a population of 1.4 billion.


As the economy continues to develop, China's reliance on oil is increasing year by year.


Therefore, efficiently and safely developing and utilizing oil resources has become an urgent challenge.


In recent years, China has made significant progress in oil extraction technology. Traditional methods of oil extraction often cause environmental damage and have relatively low efficiency.


To address these challenges, Chinese researchers and engineers are continuously exploring and innovating, developing several cutting-edge oil extraction technologies.


For example, in the extraction of deep-sea oil fields, China has mastered advanced drilling techniques that can operate efficiently in extreme environments.


At the same time, significant progress has also been made in the development of non-traditional oil and gas resources such as shale gas and coalbed methane, which not only enhances domestic oil reserves but also contributes to the diversification of the global energy market.


It is noteworthy that China places a high emphasis on environmental protection and sustainable development in the oil extraction industry, implementing a series of measures to reduce environmental damage, such as using advanced wastewater treatment systems and stringent emission standards.


These measures not only protect the ecological environment but also enhance China's image as an environmentally responsible country internationally.


As one of the world's largest energy consumers, China occupies an important position in the international oil market, establishing lasting cooperative relationships with many oil-producing countries. It actively promotes oil cooperation projects in the Middle East and Central Asia, providing a stable oil supply for China and contributing to the economic development of those regions.


Additionally, China is also actively promoting the internationalization of its oil industry, with several large oil companies venturing abroad to participate in international market competition.


Despite the significant achievements China has made in oil reserves, extraction technology, and international standing, it must continue to strive to address the ever-increasing demand for oil and changes in the global energy market, intensifying efforts in technological innovation and deepening international cooperation to ensure the country's energy security.

0 views0 comments

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating

Best Value

Membership subscription

$2

2

Every month

Our economy is in serious trouble; your support will help us survive.

Valid for 12 months

​CosDream

News
bottom of page