• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 13 minutes Shale Oil Fiasco
  • 3 mins Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 38 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 12 hours Indonesia Stands Up to China. Will Japan Help?
  • 2 hours US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 26 mins Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 14 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 29 mins Beijing Must Face Reality That Taiwan is Independent
  • 5 hours Might be Time for NG Producers to Find New Career
  • 17 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 1 day Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 3 mins Trump has changed into a World Leader
  • 1 day Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

The Hague Tribunal Ruling On South China Sea Raises Tensions

An international tribunal in The Hague, Netherlands, has ruled against China’s territorial claims in the South China Sea, spurring concern about Asia’s biggest economy’s next moves. China immediately rejected the Permanent Court of Arbitration’s ruling and said its army will defend what it deems to be its legitimate territorial claims to a basin that is not just rich in oil and gas, but is also a major waterway connecting Asia, Europe, and the Middle East.

(Click to enlarge) 

Image source: NPR

The news worried the energy and the shipping industry alike: the South China Sea is the only economically viable channel for oil tankers and large dry bulk carriers in the region.

Commenting on the court’s ruling, Peter Hinchliffe, secretary general of the International Chamber of Shipping in London said, “It is vital that merchant ships are allowed to go about their lawful business on the world's oceans without diversion or delay. We will of course be monitoring for any interference in the coming weeks.”

Should China get really serious about its claims and force ships to find another route to and from Asian markets, everyone involved will suffer higher insurance and transportation costs, to say the least. However, this is unlikely to happen, according to several shipping and insurance sources who spoke to Reuters. Related: Merger Of Libya’s Rival Oil Companies Meaningless Without Control Over Oilfields

The so-called South China Sea dispute between China, the Philippines, Vietnam, Taiwan, Malaysia and even tiny Brunei, has been going on for a long time, and heated up recently when China stepped up its policies of securing as much of the basin’s oil and gas reserves as possible, despite dwindling demand.

The region is already home to many neighborly tensions, and the likelihood of these increasing is significant since China didn’t just reject The Hague court’s ruling—it said it did not recognize it at all. While the Philippines may consider it a win, and while it is almost certain that China will not move to close this major shipping route, it remains to be seen what Beijing is keeping up its sleeve for later use.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play