Dryad Global's latest Metis Insights analysis, The South China Sea: Oil and Gas and an Increasingly Assertive China uncovers how China’s militarisation and harassment of vessels are impacting oil, gas, and offshore operations—putting Southeast Asia’s maritime sector at risk.
Key Points:
• Strategic shipping lanes under pressure
• Energy exploration obstructed by Chinese aggression
• Vietnam & Malaysia pushing offshore drilling despite risks
• Artificial islands transforming into military outposts
The South China Sea is not only vital for global trade but also holds major oil and gas reserves that are critical for the energy security of claimant states. Countries like Vietnam and Malaysia are investing in offshore drilling to meet domestic needs amidst declining onshore reserves.
The militarization of artificial islands and increased Chinese aggression have aggravated tensions in the South China Sea, in turn jeopardizing the economic and energy interests of Southeast Asian nations.
It will be essential to closely monitor future changes in the presence of, and hostility by, China, Southeast Asian nations, the U.S., and other interest parties. Active dialogue and cooperation among claimant states are vital for managing disputes and reducing tensions.