Recently published research from Business Monitor International, "South Korea Oil & Gas Report Q1 2014", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 12/19/2013 -- While there are efforts to stimulate upstream oil and gas activity, there is little to suggest that South Korea can develop significant resources, meaning the country is set to remain a key importer of crude and natural gas in liquefied form. Meanwhile the government is planning initiatives aimed at reducing oil and LNG consumption, though a safety scandal in the nuclear industry is driving demand of LNG imports to cover for lost power generation over the short term.
The main trends and developments we highlight for the South Korean oil and gas sector are:
- The impact of the US' shale gas boom has been particularly felt by South Korea's petrochemical industry. This is one of the chief reasons for the government's push for greater Korean involvement in global shale gas developments, as it hopes that upstream asset control can allow for greater supply security and lower gas import prices.
- Korea has also made considerable efforts to modernise and upgrade its refining sector. The focus has been on expanding production of high margin products such as paraxylene, to become more competitive in the regional and global downstream sector.
- Scandals regarding bogus safety certificates in the nuclear sector have shut down three facilities while delayed a further three from being commissioned. The loss in power generation from nuclear is demanding greater imports of LNG, with gas making up the difference. From January to September, LNG imports have risen 12% year-on-year.
- There is considerable uncertainty with regard to import demand created from the scandal in the nuclear sector. Our base case scenario anticipates reduced demand for oil and we see import costs falling from US$97.2bn in 2013 to US$91.3bn in 2017. From 2017 we expect small demand increases to be counter-balanced by falling crude prices leaving oil import costs of around US$90.5bn. As the second largest LNG importer natural gas cost will remain high and rise slightly from US$27.9bn in 2013 as Korea manages the difficulties in its nuclear power industry. We expect coal and nuclear to play a bigger role in the longer term, reducing LNG imports to US$26.1bn in 2017.
- Korea's upstream sector maintains its bleak outlook with no positive developments in oil or gas prospecting seen in 2013. The country's only producing gas field Donghae-1 is expected to be largely depleted by 2017 and could be converted into a storage facility.
View Full Report Details and Table of Contents
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Energy research reports at Fast Market Research
You may also be interested in these related reports:
- CNOOC Limited Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- China Petroleum & Chemical Corporation Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2013
- Royal Dutch Shell Plc, Company Intelligence Report
- Voyager Oil & Gas, Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Legacy Oil + Gas Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- OJSC Rosneft Oil Company Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2013
- Sure Energy Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Hawk Exploration Ltd. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- Traverse Energy Ltd. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
- BNK Petroleum Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2013
Copyright © 2005-2014 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)