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China, Taiwan Tapping of Diaoyu Islands' Resources is Blow to Japan - Paper
Posted on: Tuesday, 16 September 2008, 12:00 CDT
http://www.redorbit.com/news/sci ... sources_is_blow_to/


[Article by Yi Hsiung: "Both Sides of Taiwan Strait Join Hands in Exploiting Diaoyu Islands' Resources"]

A few days ago two major energy enterprises in the mainland and Taiwan decided to join hands in prospecting for and exploiting oil and gas resources in China's Diaoyu Islands waters. This move marks the rise of cross-Strait energy cooperation to a new height and also deals a heavy blow to some Japanese energy experts' wild ambition to encroach on the energy resources at China's Diaoyu Islands.

According to a report in Taiwan's Lien-Ho Pao, the second meeting between Chiang Ping-kun, chairman of Taiwan's "Strait Exchange Foundation," and Chen Yunlin, president of the mainland's Association for Relations Across the Taiwan Strait, is expected to start at the end of October. Aside from signing two agreements on a direct sea shipping link and chartered cargo flights, the two sides will list cross-Strait joint exploitation of oil and gas resources as a priority topic for discussion. On the occasion the two sides of the Taiwan Strait will sign a cooperation agreement on jointly carrying out oil resources extraction overseas, at the Diaoyu Islands, and in the Taiwan Strait. China has indisputable sovereignty over the Diaoyu Islands and both sides of the Taiwan Strait already have a consensus on this. This is a firm foundation of cooperation between both sides in extracting oil and gas resources at the Diaoyu Islands.

Energy Giants in Strong-Strong Cooperation

The major cooperating enterprises on the two sides of the Taiwan Strait are the mainland's China National Offshore Oil Corporation (CNOOC for short) and Taiwan's "Chinese Petroleum Corporation (CCP Corporation for short)." As both the mainland's CNOOC and Taiwan's CCP Corporation that join hands this time are solid industry giants, this strong-strong cooperation in exploiting energy resources at the Diaoyu Islands surely will yield twice the result with half the effort. The CNOOC has solid technical strength and rich experience in prospecting and extraction. The group, which in recent years "swallowed" several large oil and gas fields along the Chinese coast, is resourceful in tackling offshore oil and gas fields that are structurally complex, have multiple faults, and are relatively unevenly distributed. On the other hand, the CCP Corporation is the leading enterprise of Taiwan's oil industry and its scope of business covers all aspects of the oil industry. Now the group has three oil refineries respectively located in Kaohsiung, Taoyuen, and Talin and is capable of refining 720,000 barrels of crude oil a day. Because of its deficiency in oil resources, the island produces only 1,000 barrels of crude oil a day. Therefore, some media in Taiwan jokingly said the oil produced a year on the island of Taiwan is only enough for a day's refining at the CCP Corporation's oil refineries. At present Taiwan's daily crude oil consumption is 876,000 barrels and the CCP Corporation has for years been unable to bring its strength into play.

The cross-Strait joint exploitation of the Diaoyu Islands' oil and gas resources marks an important step taken in energy cooperation by the two sides, which are forming an energy alliance. The CNOOC and CCP Corporation once signed, in 2002, a "Taiwan- Chaozhou" (referring to the waters between Taiwan's Tainan and the mainland's Chaozhou) oilfield prospecting contract. Because the Chen Shui-bian authorities stood in the way, the cooperation was discontinued in 2005. Likewise, a cooperative plan for cross-Strait joint prospecting for oil and gas resources in the Nanri Islands basin in the Taiwan Strait was shelved.

After Ma Ying-jeou was elected, the two sides of the Taiwan Strait gradually resumed energy cooperation. In April this year CCP Corporation chairman Pan Wen-yen led a delegation on a visit to the mainland and held talks with the CNOOC and other mainland oil companies. According to the latest agreement on cross-Strait energy cooperation, the CCP Corporation will set up an office in Beijing while the CNOOC and China Petrochemical Corporation, the two largest oil companies in the mainland, will set up offices in Taipei - cross- Strait energy cooperation will further expand.

Jointly Opening Up "Middle East on Sea"

According to experts, the whole East China Sea waters are an oil- rich region and the Diaoyu Islands waters the "oil-rich region of the East China Sea." From the angle of geological structure, it is a sedimentation basin where oil and gas resources are most likely to accumulate and abundant oil, natural gas, and combustible ice resources are stored under the sea. The Diaoyu Islands waters' oil reserves are estimated at 74-157 billion barrels. Therefore, some scholars call China's Diaoyu Islands the "Middle East on the sea."

The cross-Strait joint exploitation of the Diaoyu Islands' oil and gas resources will go a long way towards solving Taiwan's energy shortage problem. Taiwan has for many years suffered from an "oil drought." At one time in March this year, there was even news that "oil reserves within the island were already insufficient to last for 20 days." Analysts pointed out that Taiwan must resolve the issue of limited energy sources. Behind the Taiwan authorities' strengthening of cooperation with the mainland for joint exploitation of the Diaoyu Islands' energy resources, there is also the consideration of expanding their channels of energy.

In addition, Taiwan can seize the opportune moment of extracting the Diaoyu Islands' resources to comprehensively strengthen energy cooperation with the mainland of the motherland and get actively involved in the joint exploitation of oil and gas resources in other regions, e.g. the East and South China Sea waters that are rich in oil deposits. Only in this way can it solve, once and for all, the energy shortage problem that has beset it for a long time.

The point that is 90 km south of the Diaoyu Islands naturally falls within their 200-nautical mile exclusive economic zone. It is an area under Taiwan's jurisdiction and a hot spot of Taiwan- Japanese fishery disputes over the years. At the end of June 2005, Taiwan's "Legislative Yuan" President Wang Jin-pyng and "Minister of National Defence" Lee Jye put out to sea on the frigate "Feng- yang," a Taiwan Navy vessel with a relatively strong operational capacity, to protect its fishermen. No Japanese naval vessels were present on that day for "defence." By early July a Japanese frigate was dispatched for surveillance when Taiwan fishing boats were operating in the Diaoyu Islands waters. Taiwan's General Maritime Patrol Agency also sent there a warship, the "Ch'in-hsing," to protect the fishermen. The Taiwan and Japanese warships, which were several hundred meters away from each other, had a face-off that lasted eight hours. It is thus clear that Taiwan closely guarded its bottom line on sovereignty over the Diaoyu Islands even during the Chen Shui-bian period.

At the end of April this year, Japanese media said China's Liberation Army sent a F-23T escort vessel to escort a scientific expedition ship to the Diaoyu Islands waters for operations and declared that the Diaoyu Islands were Chinese territory on which there was no room for negotiations with Japan. That was totally in line with China's stand of rejecting Japan's vain attempt to join in opening up its Chunxiao oil and gas field in the East China Sea.

Japan's Coveting Dealt Heavy Blow

That both sides of the Taiwan Strait are joining hands in exploiting the Diaoyu Islands' energy resources and jointly drawing up a response plan is of great significance to safeguarding the Chinese nation's interests and bringing about common prosperity and development on the two sides of the Taiwan Strait.

At present China and Japan are having further consultations on the issue of exploiting energy resources in the East China Sea. China already made clear that it has indisputable sovereignty over the Diaoyu Islands and the surrounding waters but there are still energy experts and scholars in Japan who ignore the fact and keep on advocating that "Japan should prospect for oil and natural gas resources around the Diaoyu Islands" or even want to put into action their intention to take a share of the Diaoyu Islands' energy resources. As revealed by Japan's Sankei Shimbun, the Japanese Government in 2005 allocated $96 million for building a surveying ship that would prospect for submarine oil through three- dimensional seismography. At that time some Japanese energy experts already indicated that Japan's main purpose for building this ship was to prospect for oil and gas resources in China's Diaoyu Islands waters. The surveying ship has now been built and launched. Nihon Keizai Shimbun pointed out that earlier the Tokyo-based Institute of Energy Economics of Japan had, "out of wishful thinking," worked out a plan to extract oil and gas resources in the Diaoyu Islands waters. Included in the plan is the application of three- dimensional seismography to prospect for oil and gas resources in the Diaoyu Islands waters, followed by discussions with Japanese energy companies on how to drill wells and prospect in the waters.

Japanese media opined: The decision made this time by the Chinese mainland and Taiwan to join hands in hitting out and extracting the Diaoyu Islands' oil and gas resources has the implication of joining hands in "guarding oil." This is a heavy blow to Japan's improper desire to come in for a share of the resources at China's Diaoyu Islands.:D :D

China, Taiwan Tapping of Diaoyu Islands' Resources is Blow to Japan - Paper
Posted on: Tuesday, 16 September 2008, 12:00 CDT
http://www.redorbit.com/news/sci ... sources_is_blow_to/


[Article by Yi Hsiung: "Both Sides of Taiwan Strait Join Hands in Exploiting Diaoyu Islands' Resources"]

A few days ago two major energy enterprises in the mainland and Taiwan decided to join hands in prospecting for and exploiting oil and gas resources in China's Diaoyu Islands waters. This move marks the rise of cross-Strait energy cooperation to a new height and also deals a heavy blow to some Japanese energy experts' wild ambition to encroach on the energy resources at China's Diaoyu Islands.

According to a report in Taiwan's Lien-Ho Pao, the second meeting between Chiang Ping-kun, chairman of Taiwan's "Strait Exchange Foundation," and Chen Yunlin, president of the mainland's Association for Relations Across the Taiwan Strait, is expected to start at the end of October. Aside from signing two agreements on a direct sea shipping link and chartered cargo flights, the two sides will list cross-Strait joint exploitation of oil and gas resources as a priority topic for discussion. On the occasion the two sides of the Taiwan Strait will sign a cooperation agreement on jointly carrying out oil resources extraction overseas, at the Diaoyu Islands, and in the Taiwan Strait. China has indisputable sovereignty over the Diaoyu Islands and both sides of the Taiwan Strait already have a consensus on this. This is a firm foundation of cooperation between both sides in extracting oil and gas resources at the Diaoyu Islands.

Energy Giants in Strong-Strong Cooperation

The major cooperating enterprises on the two sides of the Taiwan Strait are the mainland's China National Offshore Oil Corporation (CNOOC for short) and Taiwan's "Chinese Petroleum Corporation (CCP Corporation for short)." As both the mainland's CNOOC and Taiwan's CCP Corporation that join hands this time are solid industry giants, this strong-strong cooperation in exploiting energy resources at the Diaoyu Islands surely will yield twice the result with half the effort. The CNOOC has solid technical strength and rich experience in prospecting and extraction. The group, which in recent years "swallowed" several large oil and gas fields along the Chinese coast, is resourceful in tackling offshore oil and gas fields that are structurally complex, have multiple faults, and are relatively unevenly distributed. On the other hand, the CCP Corporation is the leading enterprise of Taiwan's oil industry and its scope of business covers all aspects of the oil industry. Now the group has three oil refineries respectively located in Kaohsiung, Taoyuen, and Talin and is capable of refining 720,000 barrels of crude oil a day. Because of its deficiency in oil resources, the island produces only 1,000 barrels of crude oil a day. Therefore, some media in Taiwan jokingly said the oil produced a year on the island of Taiwan is only enough for a day's refining at the CCP Corporation's oil refineries. At present Taiwan's daily crude oil consumption is 876,000 barrels and the CCP Corporation has for years been unable to bring its strength into play.

The cross-Strait joint exploitation of the Diaoyu Islands' oil and gas resources marks an important step taken in energy cooperation by the two sides, which are forming an energy alliance. The CNOOC and CCP Corporation once signed, in 2002, a "Taiwan- Chaozhou" (referring to the waters between Taiwan's Tainan and the mainland's Chaozhou) oilfield prospecting contract. Because the Chen Shui-bian authorities stood in the way, the cooperation was discontinued in 2005. Likewise, a cooperative plan for cross-Strait joint prospecting for oil and gas resources in the Nanri Islands basin in the Taiwan Strait was shelved.

After Ma Ying-jeou was elected, the two sides of the Taiwan Strait gradually resumed energy cooperation. In April this year CCP Corporation chairman Pan Wen-yen led a delegation on a visit to the mainland and held talks with the CNOOC and other mainland oil companies. According to the latest agreement on cross-Strait energy cooperation, the CCP Corporation will set up an office in Beijing while the CNOOC and China Petrochemical Corporation, the two largest oil companies in the mainland, will set up offices in Taipei - cross- Strait energy cooperation will further expand.

Jointly Opening Up "Middle East on Sea"

According to experts, the whole East China Sea waters are an oil- rich region and the Diaoyu Islands waters the "oil-rich region of the East China Sea." From the angle of geological structure, it is a sedimentation basin where oil and gas resources are most likely to accumulate and abundant oil, natural gas, and combustible ice resources are stored under the sea. The Diaoyu Islands waters' oil reserves are estimated at 74-157 billion barrels. Therefore, some scholars call China's Diaoyu Islands the "Middle East on the sea."

The cross-Strait joint exploitation of the Diaoyu Islands' oil and gas resources will go a long way towards solving Taiwan's energy shortage problem. Taiwan has for many years suffered from an "oil drought." At one time in March this year, there was even news that "oil reserves within the island were already insufficient to last for 20 days." Analysts pointed out that Taiwan must resolve the issue of limited energy sources. Behind the Taiwan authorities' strengthening of cooperation with the mainland for joint exploitation of the Diaoyu Islands' energy resources, there is also the consideration of expanding their channels of energy.

In addition, Taiwan can seize the opportune moment of extracting the Diaoyu Islands' resources to comprehensively strengthen energy cooperation with the mainland of the motherland and get actively involved in the joint exploitation of oil and gas resources in other regions, e.g. the East and South China Sea waters that are rich in oil deposits. Only in this way can it solve, once and for all, the energy shortage problem that has beset it for a long time.

The point that is 90 km south of the Diaoyu Islands naturally falls within their 200-nautical mile exclusive economic zone. It is an area under Taiwan's jurisdiction and a hot spot of Taiwan- Japanese fishery disputes over the years. At the end of June 2005, Taiwan's "Legislative Yuan" President Wang Jin-pyng and "Minister of National Defence" Lee Jye put out to sea on the frigate "Feng- yang," a Taiwan Navy vessel with a relatively strong operational capacity, to protect its fishermen. No Japanese naval vessels were present on that day for "defence." By early July a Japanese frigate was dispatched for surveillance when Taiwan fishing boats were operating in the Diaoyu Islands waters. Taiwan's General Maritime Patrol Agency also sent there a warship, the "Ch'in-hsing," to protect the fishermen. The Taiwan and Japanese warships, which were several hundred meters away from each other, had a face-off that lasted eight hours. It is thus clear that Taiwan closely guarded its bottom line on sovereignty over the Diaoyu Islands even during the Chen Shui-bian period.

At the end of April this year, Japanese media said China's Liberation Army sent a F-23T escort vessel to escort a scientific expedition ship to the Diaoyu Islands waters for operations and declared that the Diaoyu Islands were Chinese territory on which there was no room for negotiations with Japan. That was totally in line with China's stand of rejecting Japan's vain attempt to join in opening up its Chunxiao oil and gas field in the East China Sea.

Japan's Coveting Dealt Heavy Blow

That both sides of the Taiwan Strait are joining hands in exploiting the Diaoyu Islands' energy resources and jointly drawing up a response plan is of great significance to safeguarding the Chinese nation's interests and bringing about common prosperity and development on the two sides of the Taiwan Strait.

At present China and Japan are having further consultations on the issue of exploiting energy resources in the East China Sea. China already made clear that it has indisputable sovereignty over the Diaoyu Islands and the surrounding waters but there are still energy experts and scholars in Japan who ignore the fact and keep on advocating that "Japan should prospect for oil and natural gas resources around the Diaoyu Islands" or even want to put into action their intention to take a share of the Diaoyu Islands' energy resources. As revealed by Japan's Sankei Shimbun, the Japanese Government in 2005 allocated $96 million for building a surveying ship that would prospect for submarine oil through three- dimensional seismography. At that time some Japanese energy experts already indicated that Japan's main purpose for building this ship was to prospect for oil and gas resources in China's Diaoyu Islands waters. The surveying ship has now been built and launched. Nihon Keizai Shimbun pointed out that earlier the Tokyo-based Institute of Energy Economics of Japan had, "out of wishful thinking," worked out a plan to extract oil and gas resources in the Diaoyu Islands waters. Included in the plan is the application of three- dimensional seismography to prospect for oil and gas resources in the Diaoyu Islands waters, followed by discussions with Japanese energy companies on how to drill wells and prospect in the waters.

Japanese media opined: The decision made this time by the Chinese mainland and Taiwan to join hands in hitting out and extracting the Diaoyu Islands' oil and gas resources has the implication of joining hands in "guarding oil." This is a heavy blow to Japan's improper desire to come in for a share of the resources at China's Diaoyu Islands.