The nation’s four refinery companies saw their petroleum product exports increase for the second straight year.
Figures released by Korea Petroleum Association (KPA) on July 26 showed that the four refinery companies — SK Energy, GS Caltex, S-OIL and HD Hyundai Oilbank — saw their petroleum product exports surge to 228.5 million barrels in the first half of this year, a 3.2 percent rise over the same period last year.
Korea saw petroleum product exports drop to about 196 million barrels in 2021, the lowest-ever level in 10 years due to the consequences of the spread of the COVID-19 pandemic.
Petroleum product exports increased for the second straight year on the back of rising global transportation demand.
KPA said, “A rise in export amounts is owed to part of refinery industry circles’ efforts to overcome a crisis by expanding exports, despite the weakening of domestic demand, coupled with the slugging petrochemical economy and some refinery companies’ regular repairs.”
But the value of exports plunged 22.1 percent year-on-year to $21,811 million due to declining export unit price, caused by sagging international crude oil prices.
Export profitability — export unit price minus crude oil import unit price — fell about 52 percent to $11.4 per barrel due to declining global refinery margins, thus having an adverse impact on the refinery companies’ business performances.
Kerosene exports accounted for 41 percent of the total amounts to become the largest export item, followed by gasoline products with a 20 percent share, aviation fuels with a 19 percent portion and naphtha products with an 8 percent share.
Naphtha exports jumped 41 percent by expanding exports to China and Japan.
By nation, Korea saw exports to Australia take an 18.2 percent share, followed by Singapore with an 11.8 percent portion, China with an 11.2 percent share, Japan with a 10.1 percent portion, and the United States with a 9.6 percent share.
Australia emerged as Korea’s largest export country last year, and Korea saw exports to Australia surge 25.5 percent in the first half of this year, the highest growth rate among exporting countries on the back of rising demand on aviation fuels.
Gasoline product exports to the United States surged 95 percent year-on-year to 5.25 million barrels, the highest growth rate. Korea’s rise in petroleum product exports is attributable to the United States’ expanding gasoline products to Europe in the wake of the Russia-Ukraine war and the rising U.S. domestic demand on the back of increasing gasoline consumption in the driving season.
The nation’s petroleum export rise is uncertain in the future given uncertain outside conditions, such as fears of declining demand, caused by the sagging global economy and rising variables, caused by OPEC+ countries’ production reduction policies.
A KPA official said, “Korean refinery companies have been devoting themselves to exploring overseas markets while staging a fierce competition with China and India which have secured price competitiveness on the back of lower prices of Russian crude oil products.”
KPA Chmn. Park Joins No-Disposable ‘1 zer0’ Challenge Relay
Korea Petroleum Association said in its website on July 7 KPA was joining the no-disposable challenge relay drive, dubbed “1 zer0 Challenge,” which was initiated by Environment Minister Han Wha-jin in February.
The no-disposable challenge relay is an environmental campaign in which each participant displays figures 1 and 0 with hand movements as a pledge to reduce disposable items during his or her daily life and designates the next participant.
The drive is designed to make the use of multiple-use items part of their daily life by raising awareness toward a reduction in the use of disposable items.
On July 12, Korean Air President Woo Ki-hong recommended GS Caltex President Hur Sae-hong and HD Hyundai Oilbank President Joo Young-min.
On July 24, GS Caltex President Hur designated KPA Chairman Park Joo-sun as his next participant.
KPA Chairman Park, who accepted the baton in the relay, said, “KPA urges all executives and staffers to utilize reusable papers and make the use of multiple-use items, such as mug cups instead of paper cups, but the challenge drive serves as an opportunity for me to be more committed to the causes of environment and future during my daily life.”
Ex-MOTIE Director Yoo Yeon-baek Elected as KPA Vice Chaimran
Korea Petroleum Association elected Yoo Yeon-baek, former director of nuclear power industry at the Ministry of Trade, Industry and Energy as its vice chairman, KPA said on Oct. 11.
KPA Vice Chmn. Yoo graduated from Kyunghee University Public Administration Department and a master’s course at Seoul National University Graduate School of Public Administration.
He also obtained a master’s degree in public administration from Korea Development Institute.
Vice Chmn. Yoo began his public office career after he passed the 20th higher administrative examination in 1986 and held positions, such as director in charge of petroleum industry at MOTIE and director in charge of nuclear power industry at MOTIE and executive vice chairman of the Independent Power Producer Association.
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