This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China's Offshore Oil Driller Seen Winning Rights Dispute

CNOOC also happens to be China's biggest producer of offshore natural gas. Natural gas may turn out to be the top resource in the South China Sea, as the U.S. Geological Survey has estimated that resource, not oil, makes up 60% to 70% of the ocean's hydrocarbon deposits.

The greasy truth about the South China Sea dispute is that China will probably win it. It has the world's second largest world economy, surpassing Japan's as Asia's most important. Fellow South China Sea claimants increasingly depend China for tourism, economic cooperation and a market for exports, so the smaller countries are likely to keep pressing for a diplomatic resolution that keeps China happy.

For economic and geopolitical reasons, the U.S. doesn't want a fight with China, despite a series of gestures this year in support of its former colony, the Philippines. Whatever Washington does next, it should fall way short of sending warships to pursue the Chinese. All this means that CNOOC will be left alone to see how much it can dig up from beneath the ocean floor.

At the time of publication, the author had no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BP $29.92 0.00%
CEO $96.30 0.00%
FET $10.24 0.00%
XOM $81.16 0.00%
AAPL $95.01 0.00%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs