Oil’s Next Big Water Destination

My first blog to you is about oil and (what else?) the Gulf of Mexico. It’s time to look into the future.
Look, the Gulf will never be the same again. And, no, I’m not talking about the washed-up oil. It’s a mess but it’ll clear up eventually. But the Gulf as one of the most coveted and promising deep-water drilling areas in the world? Those days are gone forever.
So it’s time to ask, what will replace the Gulf?
The answer, and I bet you don’t see this one coming, is…The South China Sea. I already see signs of it happening. One very clever oil company purchased a big stake in the South China Seas last month. And two weeks ago BP (yes that BP!) and Chevron bought the rights to another big block in the South China Seas.
But get this. If BP and Chevron succeed in making a commercial discovery, the clever oil company which bought a block last month gets an exclusive right to take a 51% interest in BP/Chevron’s block.
Who is this company? It’s the China National Offshore Oil Corp (CNOOC). And the South China Sea is its major production area.
You heard it here first. The South China Seas is the next big deepwater drilling destination.
BP, Chevron, ExxonMobil, Shell and all the rest of you: Welcome to CNOOC’s world.