Reliance on imported oil pushes the government to focus more on developing renewable energy resources

By Yoo Soh-jung

With pressures intensifying to secure stable crude sources amid soaring global oil prices and tight supply, Korea's dependence on imports has driven it to adopt policies for energy diversification through aggressive exploration and international cooperation.

As the world's fifth-largest crude importer, Korea has developed long-term approaches, including international cooperation, for coping with its oil needs. These approaches entail a future-oriented energy consumption system and aggressively pursuing overseas oil exploration projects, the Ministry of Commerce, Industry and Energy says.

Deprived of domestic oil reserves, Korea imports about 98 percent of its crude oil, which makes up the largest share of the country's total energy consumption. Petroleum accounted for 54 percent of the country's primary energy consumption in 2002. In 2004, the nation consumed about 2.14 million barrels a day (bbl/d), down from a high of nearly 2.3 million bbl/d in 1997. Last year, the country's primary energy consumption during the first nine months rose by 4 percent compared to a year ago, according to the Korea Energy Economics Institute.

Eighty-one percent of the country's oil imports come from the Persian Gulf region, with Saudi Arabia supplying about one-third, the Energy Ministry said.

By energy category, from January to September 2005, consumption of nuclear power and alternative energy increased significantly from 2004, according to the KEEI. Demand for coal and liquefied natural gas was comparatively low.

The Energy Ministry's 2006 policy initiative outlines long-term policy goals that aim to balance environmental changes and the outlook for supply and demand. Since the 1997-98 financial crisis, the country has felt a greater need to rethink its reliance on imported oil for domestic energy demand.

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Posted by pichu at August 15, 2006 5:35 PM