-
Korea Oil Security Policy
…have sourced increasing shares of their crude oil needs from the United States since 2018 but a strong reliance on Middle Eastern grades remains. Storage Korea holds strategic and commercial oil reserves in both crude oil and oil products. The combined storage capacity stands at almost 400 mb. Government stocks and international joint oil stockpiling account for 35% of the storage capacity. There are nine government storage facilities. The remaining capacity relates to commercial facilities, including for obligated industry stocks. Oil emergency response policies and measures OrganisationThe 2017 Petroleum and Petroleum Substitute Fuel Business Act (PAPSA) and the 2016 Energy...
-
Korea Natural Gas Security Policy
… Pohang Iron and Steel Company (POSCO) and K-Power jointly own the Gwangyang regasification facility located on the southern coast. A terminal at Boryeong, in the north western region, is owned by a joint venture between GS Energy and SK E&S. Korea has imported United States LNG since 2016, as part of its endeavour to diversify its gas procurement sources, and became the largest importer of United States LNG in 2018.Gas storage facilities There are no underground gas storage facilities in Korea and gas is exclusively stored in above ground tanks in the form of LNG.The five…
-
Korea Electricity Security Policy
Country Energy Security Policy - Electricity Overview and generation portfolio Electricity generation in Korea is heavily dependent on coal, which represents over 40% of total generation. The vast majority of the remaining electricity generation derives from natural gas and nuclear energy, in roughly equal shares. Renewable energies account for a growing but still small proportion, and are expected to reach 21.6% of total electricity generation by 2030. Korea’s power grid is an isolated system with no cross-border transmission lines; therefore, electricity demand is met entirely through local production. Korea has an electricity emergency response manual outlining response procedures…
-
Korea's legislation on oil security
…Substitute Fuel Business Act (PAPSA) and the 2016 Energy Act (EA). Together both acts provide the legal framework for Korea’s oil emergency response. Circumstances triggering operation of the emergency response system The PAPSA provides for two levels of emergency measures. The first level is triggered when the uninterrupted supply of oil and the satisfaction of Korea’s oil demand is threatened by events in Korea or abroad or when disturbances in the oil market threaten Korea’s public order or national economy (article 21(1) PAPSA).An aggravated energy emergency exists when the uninterrupted oil supply is threatened in…
-
Oil Market Report - December 2017
…countries. Highlights Our forecast for global demand growth remains unchanged at 1.5 mb/d in 2017 (or 1.6%) and 1.3 mb/d in 2018 (or 1.3%). Revisions have been made to data for Nigeria, Germany and Iraq. The baseline for oil demand has been raised by roughly 0.2 mb/d.Global oil supply rose 0.2 mb/d in November to 97.8 mb/d, the highest in a year, on the back of rising US production. Output was nonetheless down 1.1 mb/d on a year ago when Russia and Middle East OPEC producers pumped at record rates. Non…
-
Oil Market Report - June 2023
…exports, while shipments to Africa, the Middle East and Latin America made up another 12%. Estimated export revenues fell by $1.4 bn to $13.3 bn, down 36% on a year ago, with average crude prices easing from $60/bbl in April to $55/bbl in May.Global refinery throughputs are forecast to increase by 1.8 mb/d in 2023 and 1 mb/d next year when it averages 83.4 mb/d. A further decline in OECD crude runs next year is more than offset by the 1.3 mb/d increase in non-OECD activity. New…
-
Oil Market Report - December 2018
…in the US, Middle East and China. Lower crude prices helped margins, although the gasoline-focused US Gulf Coast lagged behind.OECD commercial stocks rose in October for the fourth consecutive month, by 5.7 mb, to 2 872 mb. They were above the five-year average for the first time since March. NGL and feedstock inventories hit a historic high whereas fuel oil stocks fell to a record low.Having fallen by 30% since early October, oil prices stabilised with ICE Brent close to $60/bbl and NYMEX WTI at $52/bbl. Weak demand weighed on gasoline and naphtha markets. Freight rates…
-
Oil Market Report - February 2018
…global refining throughput is expected to slow by 0.4 mb/d in 1Q18 to 81.1 mb/d due to seasonal maintenance, primarily in the US and Middle East. A strong rebound is expected in April-May as runs ramp up to meet increased seasonal demand and to replenish product stocks. Highlights Global oil supply in January edged lower to 97.7 mb/d but was 1.5 mb/d above last year as rebounding US production underpinned non-OPEC output growth.OPEC crude oil production in January was steady month-on-month (m-o-m) at 32.16 mb/d…
-
Oil Market Report - May 2017
…cuts. Sour grades continued to trade higher than sweet crudes.In 2Q17, global refining activity slows down seasonally, lower by 370 kb/d from 1Q17, but is set to ramp up by 2.4 mb/d by July-August. The OECD leads the way: in non-OECD areas, maintenance and refinery closures in the Middle East, underperformance in Latin America and flat growth in India are not offset by growth in China and Russia. Highlights Weakness in a number of previously solid countries - India, US, Germany and Turkey - curtailed the 1H17 global demand growth estimate by 115 kb/d. Global demand growth is, however…
-
Oil Market Report - April 2017
…refinery maintenance season.After 1Q17's almost flat performance vs 1Q16, refinery throughput in 2Q17 will grow 1.15 mb/d y-o-y. Refinery crude demand will surge by 3.5 mb/d between March and July, with most of the increase coming from Atlantic Basin refiners and the Middle East. Highlights Global demand growth of 1.3 mb/d is forecast for 2017, a second consecutive annual decline and slightly below our prior forecast following weaker than expected 1Q17 demand. Subdued gains in Russia and India, and weaker momentum in OECD countries, were key factors.World oil supply fell by 755 kb/d in…