Offshore drilling

Before the presidential candidates reversed their positions on offshore drilling, the Chinese government experienced some tension over offshore drilling as well.

A few days ago, China Daily reported China's displeasure with a deal inked by Exxon Mobil and Vietnam's state-owned oil company that involves petroleum exploration in the South China Sea. China National Offshore Oil Company Limited (CNOOC Ltd), already has an oilfield in the South China Sea that pumps out about 31,000 barrels a day. But China's position in this instance arises out of a series of longstanding conflicts over territorial sovereignty in coastal waters dating back, according to at least one source, to the early 1900s. Beyond the use of artillery, China has gotten so serious about its territorial claims that it wants Google to correct its maps to match the Chinese position.

The conflict arises out of the United Nations Conventions on the Law of the Sea (UNCLOS). UNCLOS includes the concept of Exclusive Economic Zones (EEZs), a term of art in international law which generally refers to a country's sovereignty beyond a shoreline and into surrounding bodies of water, but without a sufficiently specific definition. EEZs replace the old "cannon shot" rule, where "international waters" began 12 miles offshore, with a new boundary of 200 nautical miles that allows for exploration and exploitation of marine resources. (i.e. fishing) The trick is that islands count towards an EEZ, so Vietnam claims sovereignty over offshore oil using islands and so does China, based on different land masses in the South China Sea.

Reports re-published in China's state-run media cite a source who claims that China told Exxon that "its future business on the mainland could be threatened" if it doesn't back out of the deal. Vietnam wants to continue the deal and reaffirmed its claims over the disputed area. Exxon Mobile, for its part, is trying to stay out of it. Whatever the ultimate resolution, however, one thing is clear: the battle for oil, whether offshore or in the Middle East, will continue.