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188881
Thu, 06/16/2011 - 04:35
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https://oananews.org//node/188881
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S. Korea eyes 2-fold rise in oil, gas self-sufficiency by 2012
South Korea aims to nearly double its crude oil and natural gas self-sufficiency level by 2012 to support economic growth and enhance the country's energy security requirements, the government said Thursday.
The increase will push up self-sufficiency of fossil fuel resources to 20 percent of domestic demand by 2012 up from 10.8 percent tallied for last year, the Ministry of Knowledge Economy said.
The target, announced at the national economic policy meeting chaired by President Lee Myung-bak, reflects continuing efforts by Seoul to acquire overseas oil and gas fields, and increase output from operations it holds stakes in.
The recent spike in international commodities prices has also spurred the need to secure more overseas operations to better insulate the country from possible supply shortages.
Asia's fourth-largest economy had oil and gas self-sufficiency of just 4.2 percent, or 125,000 barrels per day in 2007, but the number rose to 342,000 barrels in 2010, as state-run and private energy companies moved to buy stakes in foreign fields.
"If the recent oil field development deal with the United Arab Emirates makes headway as expected, the self-sufficiency numbers could reach 24 percent of the local demand in 2012," the ministry claimed. The untapped oil fields in the Middle East country may hold up to 790 million barrels of crude.
Such a gain will permit the country to maintain a "safe" level of emergency reserves that can act as a cushion in case of unexpected shortfalls in global supply or surge in demand, it added.
In addition, the ministry said it will raise reserve levels for bituminous coal, uranium, iron, copper and nickel from 27.0 percent reached last year to 32 percent in 2012.
Of the six key resources, South Korea wants to raise self-sufficiency of uranium and copper from 3.4 percent and 6.0 percent in 2010 to 12 percent and 15 percent, respectively, by the target year.
Efforts will be made to raise access to lithium and rare earth elements that are vital for making rechargeable batteries and various information technology products. Self-sufficiency in these minerals stood at 8.5 percent of local requirements last year with Seoul moving to raise the number to 12 percent within the next two years.
To meet such goals, the ministry said it will boost financial support to energy development projects with 3.6 trillion won (US$3.3 billion) in funds to be made available through state-run Export-Import Bank of Korea this year.
The ministry, meanwhile, said it will take steps to make inroads into so-called non-conventional oil fields such as oil sand reserves, and shale oil and gas deposits that have been generally overlooked in the past.
The goal is to increase fossil fuel production from such unconventional processes so it will account for 20 percent of oil and gas produced by locally controlled overseas fields by 2030, it said.
yonngong@yna.co.kr
(END)
The increase will push up self-sufficiency of fossil fuel resources to 20 percent of domestic demand by 2012 up from 10.8 percent tallied for last year, the Ministry of Knowledge Economy said.
The target, announced at the national economic policy meeting chaired by President Lee Myung-bak, reflects continuing efforts by Seoul to acquire overseas oil and gas fields, and increase output from operations it holds stakes in.
The recent spike in international commodities prices has also spurred the need to secure more overseas operations to better insulate the country from possible supply shortages.
Asia's fourth-largest economy had oil and gas self-sufficiency of just 4.2 percent, or 125,000 barrels per day in 2007, but the number rose to 342,000 barrels in 2010, as state-run and private energy companies moved to buy stakes in foreign fields.
"If the recent oil field development deal with the United Arab Emirates makes headway as expected, the self-sufficiency numbers could reach 24 percent of the local demand in 2012," the ministry claimed. The untapped oil fields in the Middle East country may hold up to 790 million barrels of crude.
Such a gain will permit the country to maintain a "safe" level of emergency reserves that can act as a cushion in case of unexpected shortfalls in global supply or surge in demand, it added.
In addition, the ministry said it will raise reserve levels for bituminous coal, uranium, iron, copper and nickel from 27.0 percent reached last year to 32 percent in 2012.
Of the six key resources, South Korea wants to raise self-sufficiency of uranium and copper from 3.4 percent and 6.0 percent in 2010 to 12 percent and 15 percent, respectively, by the target year.
Efforts will be made to raise access to lithium and rare earth elements that are vital for making rechargeable batteries and various information technology products. Self-sufficiency in these minerals stood at 8.5 percent of local requirements last year with Seoul moving to raise the number to 12 percent within the next two years.
To meet such goals, the ministry said it will boost financial support to energy development projects with 3.6 trillion won (US$3.3 billion) in funds to be made available through state-run Export-Import Bank of Korea this year.
The ministry, meanwhile, said it will take steps to make inroads into so-called non-conventional oil fields such as oil sand reserves, and shale oil and gas deposits that have been generally overlooked in the past.
The goal is to increase fossil fuel production from such unconventional processes so it will account for 20 percent of oil and gas produced by locally controlled overseas fields by 2030, it said.
yonngong@yna.co.kr
(END)
