popular articles

Could South Korea’s Political Conflict Alter Oil Supplies to Asia-Oceania?

Despite a major political crisis, South Korean refineries ensure the continuity of oil exports to Asia-Oceania, while union strikes could temporarily disrupt local distribution.

Please share:

South Korea, facing a significant political crisis, continues to uphold its international commitments regarding oil exports. While some disruptions are possible in domestic logistics, the country’s private refineries maintain stable flows to their Asian and Oceanian customers.

A Stable Oil Market Despite Political Tensions

The martial law declared by President Yoon Suk Yeol on December 3 raised concerns over potential impacts on infrastructure and industrial operations. However, this measure was annulled by Parliament just hours after its announcement. Private refineries, the main producers of fuel in South Korea, quickly reassured their foreign clients: political tensions do not affect production or exports of refined products.

According to Korea National Oil Corp., South Korea exported 346.05 million barrels of refined petroleum products between January and October 2024, marking a 7.8% increase compared to the same period in 2023. As Asia’s largest net exporter of petroleum products, South Korea plays a critical role in supplying gasoline, diesel, and kerosene to the region.

Exports Backed by a Robust Private Sector

South Korean refineries, including SK Energy, GS Caltex, S-Oil, and Hyundai Oilbank, operate within the private sector and are largely independent of political influences. These companies, which process an average of 3.4 million barrels of crude oil per day, export approximately 40% of their production to international markets.

Refinery officials have emphasized the resilience of their economic model. “We have strong agreements with our crude suppliers and foreign customers. This stability is unaffected by domestic political events,” said a senior executive at one refinery.

Union Strikes and Impact on Local Distribution

While international exports remain stable, the domestic market could face logistical disruptions. The Korean Confederation of Trade Unions (KCTU) has announced an indefinite strike to demand the resignation of President Yoon. Although most strikers are from the public transportation sector, significant participation by truck drivers could slow fuel distribution domestically.

In 2024, domestic consumption of refined petroleum products in South Korea reached 251.4 million barrels over the first ten months. If strikes escalate, delays in gasoline and diesel deliveries could occur in some areas. However, experts estimate that the overall impact on the domestic market would remain limited.

Reassurance for International Trade Partners

South Korean refineries have reiterated their commitment to international partners, highlighting that their operations remain uninterrupted. “Foreign markets know that we honor our commitments regardless of circumstances,” stated an international sales executive.

Asian and Oceanian stakeholders can therefore continue relying on South Korea as a key supplier, despite the tense political environment.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Lee Jae-myung could slow nuclear expansion in South Korea

South Korea's new president, Lee Jae-myung, is reviewing the national energy policy, aiming to rebalance nuclear regulations without immediately shutting down reactors currently in operation.
The French Energy Regulatory Commission released its 2024 annual report, highlighting sustained activity on grid infrastructure, pricing, and evolving European regulatory frameworks.
The French Energy Regulatory Commission released its 2024 annual report, highlighting sustained activity on grid infrastructure, pricing, and evolving European regulatory frameworks.
While capital is flowing into clean technologies globally, Africa remains marginalised, receiving only a fraction of the expected flows, according to the International Energy Agency.
While capital is flowing into clean technologies globally, Africa remains marginalised, receiving only a fraction of the expected flows, according to the International Energy Agency.
The Mexican government aims to mobilise up to $9bn in private investment by 2030, but the lack of a clear commercial framework raises doubts within the industry.
The Mexican government aims to mobilise up to $9bn in private investment by 2030, but the lack of a clear commercial framework raises doubts within the industry.

United States cancels fuel economy standards set by Biden

The U.S. Department of Transportation is withdrawing strict fuel economy standards adopted under Biden, citing overreach in legal authority regarding the integration of electric vehicles into regulatory calculations for automakers.
In 2024, renewable energies covered 33.9% of electricity consumption in metropolitan France, driven by increased hydropower output and solar capacity expansion.
In 2024, renewable energies covered 33.9% of electricity consumption in metropolitan France, driven by increased hydropower output and solar capacity expansion.
The French Energy Regulatory Commission (CRE) has announced its strategic guidelines for 2030, focusing on the energy transition, European competitiveness and consumer needs.
The French Energy Regulatory Commission (CRE) has announced its strategic guidelines for 2030, focusing on the energy transition, European competitiveness and consumer needs.
Madrid paid an arbitration award to Blasket Renewable Investments after more than ten years of litigation related to the withdrawal of tax advantages for renewable energy investors.
Madrid paid an arbitration award to Blasket Renewable Investments after more than ten years of litigation related to the withdrawal of tax advantages for renewable energy investors.

The renewable energy market reaches $1,200 billion in 2024

The global renewable energy market continues to grow, reaching $1,200 billion in 2024, according to a report by the International Energy Agency (IEA), supported by investments in solar and wind energy.
The Québec government is granting $3.43mn to the Saint-Jean-Baptiste Electric Cooperative to deploy smart meters and upgrade infrastructure across 16 municipalities.
The Québec government is granting $3.43mn to the Saint-Jean-Baptiste Electric Cooperative to deploy smart meters and upgrade infrastructure across 16 municipalities.
New US tariff measures are driving up energy sector costs, with a particularly strong impact on storage and solar, according to a study by Wood Mackenzie.
New US tariff measures are driving up energy sector costs, with a particularly strong impact on storage and solar, according to a study by Wood Mackenzie.
Despite the proclaimed urgency, European climate investments stagnate around €500 billion per year, far from the estimated needs of nearly €850 billion. New financial instruments are attempting to revive an indispensable momentum.
Despite the proclaimed urgency, European climate investments stagnate around €500 billion per year, far from the estimated needs of nearly €850 billion. New financial instruments are attempting to revive an indispensable momentum.

African Debt: Why Investors Must Anticipate Immediate Climate Impacts

African countries now spend more on debt service than on education and healthcare, limiting essential investments despite significant energy potential. The G20, under pressure, struggles to provide an adequate response to the financial and climate challenges.
Four renewable energy producers have been authorised to sell 400 MW directly to Egyptian industrial companies without public support.
Four renewable energy producers have been authorised to sell 400 MW directly to Egyptian industrial companies without public support.
A report by Ember shows ASEAN could supply nearly one-third of its data centres with wind and solar power by 2030 without storage, provided appropriate public policies are implemented.
A report by Ember shows ASEAN could supply nearly one-third of its data centres with wind and solar power by 2030 without storage, provided appropriate public policies are implemented.
Spanish authorities and grid operator REE denied conducting any experiment on the national electricity network prior to the massive outage on April 28, the cause of which remains unknown.
Spanish authorities and grid operator REE denied conducting any experiment on the national electricity network prior to the massive outage on April 28, the cause of which remains unknown.

Wood Mackenzie’s tariff scenarios reshape global energy policy

Three trade trajectories projected by Wood Mackenzie show how tariff tensions could shift demand, prices and investment in the global energy sector.
The European Commission states the Union is on track to cut emissions by 54% by 2030, following updated national plans.
The European Commission states the Union is on track to cut emissions by 54% by 2030, following updated national plans.
South Korea announces two major tenders totaling 2.25 GW, split between offshore wind and solar, introducing new economic and technical criteria designed to strengthen energy security and attract international investors.
South Korea announces two major tenders totaling 2.25 GW, split between offshore wind and solar, introducing new economic and technical criteria designed to strengthen energy security and attract international investors.
Ember anticipates that a third of ASEAN data centre electricity demand could be met by wind and solar by 2030, without batteries, if appropriate political measures are implemented.
Ember anticipates that a third of ASEAN data centre electricity demand could be met by wind and solar by 2030, without batteries, if appropriate political measures are implemented.

Indonesia plans 69.5 GW of new power capacity by 2034

The Indonesian government targets a mixed energy expansion involving coal, gas, renewables, and nuclear, requiring IDR2,967.4tn ($235bn) in investment by the end of 2034.
Canadian Natural Resources Minister Tim Hodgson announces reforms to the energy permitting process, aiming to stimulate investments and strengthen relations between the government and industry.
Canadian Natural Resources Minister Tim Hodgson announces reforms to the energy permitting process, aiming to stimulate investments and strengthen relations between the government and industry.
The U.S. Environmental Protection Agency is finalising a proposal to lift emissions caps for thermal power plants, amid a broader shift toward national energy security.
The U.S. Environmental Protection Agency is finalising a proposal to lift emissions caps for thermal power plants, amid a broader shift toward national energy security.
The Pakistani government is releasing 2,000 megawatts of power to support the development of data centres focused on artificial intelligence and Bitcoin mining, as part of a strategy to attract foreign investment.
The Pakistani government is releasing 2,000 megawatts of power to support the development of data centres focused on artificial intelligence and Bitcoin mining, as part of a strategy to attract foreign investment.

Advertising