Tuesday, January 31, 2017

Tillerson, Exxon, and China's claim on offshore oil in the South China Sea: What's the end-game?



Eric Levitz, New York Magazine... (read the whole story here)

Tillerson's boast...
“We’re going to have to send China a clear signal that, first, the island-building stops,” Tillerson told the Senate Foreign Relations Committee Wednesday, likening China’s activities in the South China Sea to Russia’s annexation of Crimea. “And second, your access to those islands also is not going to be allowed.”China claims sovereignty over most of the South China Sea — and thus, most of the 11 billion barrels of oil and 190 trillion cubic feet of natural gas that lie beneath it."

China responds...
“Unless Washington plans to wage a large-scale war in the South China Sea, any other approaches to prevent Chinese access to the islands will be foolish,” the Communist Party–controlled Global Times wrote in an editorial Friday. “If Trump’s diplomatic team shapes future Sino-U.S. ties as it is doing now, the two sides had better prepare for a military clash.”

What are the interests at stake...
"If America were to pursue a foreign policy dictated by the interests of Exxon’s shareholders, it would involve softening relations with Russia and confronting China in its disputed waters. A significant faction of Trump’s advisers appear interested in such a policy."


Ready and waiting. Photo: Kevin Frayer/Getty Images