V.Chmn. and CEO Huh Jin-soo of GS Caltex. 

Vice Chairman Huh Jin-soo of GS Caltex reemphasized the new vision for the oil company declared last year, “A Companion That Creates Top Values in Energy and Chemical Sectors,” at a New Year’s ceremony held this year.

What the CEO of the second largest oil refiner meant was the oil company should expand beyond oil refining and petrochemical industries into the energy and chemical areas to secure future growth engines if it wants to survive into the next century. He called for a battle to overcome the crises facing the oil company amid an economic slowdown that’s cutting into oil consumption, heat competition, and a sudden fall in crude oil prices, giving the oil refining industry the toughest problems in its history.

GS Caltex plans to focus on the development of new materials and high value-added products to keep its operation going without a slowdown, and its efforts have been showing slowly and steadily.

Technology to use carbon textiles for autos in commercial terms has shown signs of success. Last August, carbon textiles developed with its own technologies were successfully used to make sunroofs for Kia Motors all-new Sorrento. The nylon and polypropylene were added to the carbon textiles, which can survive impacts from collisions. It’s around 50 percent lighter than steel plates.

Standing Director Kim Hyung-kuk said carbon textiles were used on more than 100,000 passenger cars. It was the first time in the world that carbon textiles were used in the mass-production of cars. GS Caltex plans to export carbon textiles to auto makers all over the world.

The oil refinery has also been experimenting with used timber and sugar cane to develop a technology to make bio-buthanol. Bio-buthanol’s energy effect is higher than bio-ethanol and can be used in average car engines like gasoline without touching them up.

GS Caltex, at the same time, has been at work to boost its competitive edge over its rivals by diversifying its crude oil import sources to make its oil products competitive in price. The oil refinery, for the time, imported 400,000 barrels of condensate crude oil from the U.S. last October, taking advantage of the FTA between Korea and the U.S.

The oil refinery has also diversified its oil products export markets around the world, especially, light oils like gasoline, diesel and kerosene to boost profits from exports of those light oil products. 

GS Caltex will supply all kinds of oil to government agencies, including local autonomous governments and agencies, as the government wants to cut its oil bills.

On Aug. 29, the government announced its public sector oil supply procurement promotion results, which were decided at the meeting of officials in charge of prices stabilization presided over by the assistant minister of the Strategy and Finance Ministry at the Gwachon Government Annex Building in Gwachon, Gyeonggi Province, south of Seoul.

The number of supplier firms registered with the Public Procurement Service totaled 44,000 and the public organizations that don’t own oil storage facilities need 210,400 million liters of light oil worth 3.8 trillion won annually, and GS Caltex will supply these public organizations 250 million liters of gasoline, 250 million liters of diesel, and car fuel oil totaling 500 million liters at the prices some 2.866 percent lower than market prices. Some 1.1 trillion won of funds spent to buy oil will be saved with the oil procurement cards issued by Shinhan Card and the installment savings will be reflected twice annually in the revenues of public organizations that use the card.

A view of GS Caltex's Yeosu Oil Refinery in Yeosu, S. Jeolla Province.(Photos:GS Caltex)