China's CNOOC starts production at disputed gas field

China National Offshore Oil Corp (CNOOC) has said gas production had begun from an oil and gas field in the East China Sea, a territory that is the focus of a drawn-out dispute with Japan. Japan and China have long disputed the maritime boundary that lies between them, and Beijing has always insisted its explorations in the East China Sea are within China's territorial waters. But Japan says the gas field lies too close to its Exclusive Economic Zone (EEZ) - a delineation not recognized by China - and fears China might siphon off resources from an area Japan claims as its territory.

A 1999 Japanese survey estimated there were 200 billion cubic meters (seven trillion cubic feet) of gas reserves in the area, which is some 400 kilometres (250 miles) northwest of the Japanese island of Okinawa. The two countries failed to find common ground during many rounds of talks, with China saying "great differences still remained" after the last round in July. The energy reserves are among a number of disputes that have badly damaged relations between the Asian powers. They are also divided by the legacy of Japan's wartime militarism in the region.

Antarctica under siege

peakoil.com -> cbsnews.com :

Antarctica is becoming increasingly crowded by curious tourists, spellbound scientists, and countries hungry for oil and minerals. Though mining is banned until 2048, more nations are in a race to gain a toehold on the continent now - hoping to secure a voice when and if the world decides to divide up Antarctica's spoils. Already, countries are jockeying for position in the event that soaring oil prices and a world energy crisis lead to the relaxation of the ban.

Though only seven countries claim territory on Antarctica - Argentina, Australia, Britain, Chile, France, Norway, and New Zealand - other signatories of the 1959 Antarctic Treaty can build scientific stations, and many have stepped up their efforts recently. China and India have plans to add to the 59 permanent and seasonal bases in Antarctica, as do Estonia, Belgium, and South Korea.

India recently announced that it wants to build a new base in the Larsemann Hills, in an area that has been designated construction-free by international consent. The United States has blazed a 1,000-mile-long "ice highway" from its McMurdo Station on the coast to the South Pole. The track will be used to haul hundreds of tons of equipment across ice fields and crevasses.

- Now that's literally going to the ends of the earth in search of resources.

Brunei prepares for rude awakening after oil

peakoil.com -> smh.com.au :

Brunei's 370,000 citizens live a tax-free existence, with free health and education and heavily subsidised petrol prices - 51 Brunei cents a litre (USD $1.01 per gallon). But sleepy Brunei may soon have to wake up. The size of its oil and gas reserves is a state secret, but it is estimated they may last only another 20 years. In his birthday address on July 15, Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah warned that "an open attitude towards the diversification of our economy is important when it comes to ensuring the country's survival".

What will Brunei do when the state's resources run dry? Right now, the Government is looking for other ideas: tourism, creating a financial hub, and becoming a centre of halal food processing have all been mentioned. Can the sultan introduce taxes and still insist on continued absolute sovereignty? Time will tell whether Bruneians, when they finally have to pay market price for petrol, will see the future through their sovereign's eyes.

- It could be a bit late to also try to do the Dubai thing.

Peak oil mentioned in Business Times (Singapore)

Peak oil was briefly mentioned in a BT Investment Roundtable article on the weekend edition of Singapore's Business Times. The article is titled : "Sizing up a risky energy market".

business-times.asia1.com.sg :

William Thomson [chairman of Private Capital Ltd, Hong Kong and senior adviser to Franklin Templeton Institutional Hong Kong and Axiom Opportunities Fund, London] : Energy is fundamental to any economy ... with oil, in particular, the low-hanging fruit in politically stable areas has already been discovered and newly discovered resources take time to bring on stream and are very much more costly than before. Peak oil may or may not be upon us but we need to discover a field the size of Prudhoe Bay in Alaska every year. That was discovered in 1969. Even the Middle East probably has less growth potential than assumed till recently ... the oil majors, such as Royal Dutch Shell, are consistently unable fully to replenish the reserves they use through exploration ... over time, China and other emerging economies will become much more efficient users but that does not help much in the short term.

(2006-08-06 00:59:14 SGT) [Biz] Permalink

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