US Navy Supports Philippine Gas Push in Reed Bank

These operations, which included vessels like the USS Santa Barbara, BRP Diego Silang, and BRP Teresa Magbanua, are designed to improve coordination and communication among allied forces.

Their effect, however, extends into the energy security equation. By increasing the uncertainty for any actor considering action against Philippine vessels, these joint operations indirectly safeguard the nation's energy interests in disputed waters.

U.S. Defense Secretary Pete Hegseth reaffirmed the U.S. commitment to the Mutual Defense Treaty in July 2025, clarifying its extensive coverage. The treaty extends to armed attacks on the Philippines' armed forces, aircraft, and public vessels, including Coast Guard vessels, anywhere in the Pacific, specifically mentioning the South China Sea.

However, gray zone tactics, such as the use of water cannons, do not automatically trigger military intervention under the treaty. Armed attacks on Philippine public assets, in contrast, would lead to a different strategic calculation by the U.S., highlighting the seriousness with which such incidents would be viewed.

President Ferdinand Marcos Jr. confirmed significant progress in discussions with China on August 14, 2026, regarding potential joint exploration in the disputed area.

While the terms of reference for this cooperation are currently under negotiation with no fixed timetable, Defense Secretary Gilberto C. Teodoro Jr. remains skeptical. He has expressed concerns about separating energy cooperation from the broader issues of sovereignty, suggesting that such a division could undermine national interests.

Despite these reservations, President Marcos Jr. sees a distinct possibility for successful joint exploration, indicating a pragmatic approach to securing vital energy resources for the Philippines.

In 2023, approximately 10 billion barrels of petroleum and 6.7 trillion cubic feet of Liquefied Natural Gas (LNG) traversed these waters, with the LNG volume representing 34% of the global LNG trade.

For Washington, preserving freedom of navigation and preventing any single power from exercising uncontested control over these waters is critical. Such control would affect not only alliance credibility and international commerce but also the wider balance of power across the Indo-Pacific, underscoring the U.S.'s vested interest in regional stability.

However, developing these energy resources requires a secure environment to attract the necessary commercial investment.

Without security, an exploration license remains little more than paper, and uncertainty prevents companies from investing in deep-water infrastructure. The U.S. naval activity in the region functions as a part of a wider deterrence architecture designed to provide the confidence needed for survey vessels and drilling ships to operate safely offshore, making major underground resources accessible.

Although international arbitration supports Philippine rights to the area, China continues to reject this ruling.

Service Contract 72, which pertains to exploration in the area, remains under force majeure due to the ongoing dispute. Ultimately, what is at stake is not merely the gas beneath the seabed, but the Philippines' ability to decide when, how, and under what conditions resources inside its lawful maritime zone will be developed, affirming its self-determination.