Disputed South China Sea hydrocarbons in perspective

► Geological evidence does not indicate vast hydrocarbon (HC) reserves in the SCS. ► The presence of HCs may be eliminated from some disputed parts of the SCS. ► SCS HCs do not have the capacity to reverse declining domestic production. ► Growing reliance on foreign energy may elevate the importance of sea lane security. ► Modest demand side efficiency gains may offset the supply side benefit of SCS HCs.