Record-High Crude Oil Imports Last Year
"Clear Government Policies Needed for Companies to Set Direction"
As U.S. President Donald Trump pressures the import of American oil and liquefied natural gas (LNG), domestic related companies are facing deep concerns. Industry insiders agree that before formulating mid- to long-term strategies for each company, clear government policies and institutional support are urgently needed.
According to the Korea International Trade Association on the 4th, the amount of U.S.-origin crude oil imported last year reached 21,511,755 tons, accounting for 15.7% of the total imports, marking an all-time high. LNG accounted for 5,637,579 tons, or 12.2%.
During Trump’s first term (2017?2021), South Korea also took measures to expand imports of U.S. energy. The volume of U.S. crude oil imports was only 1.2% of the total in 2017 but increased to 12.1% in 2021, 12.9% in 2022, and 13.5% in 2023, becoming the largest share last year. U.S. LNG accounted for 5.2% of total imports in 2017 but surged to 18.5% in 2021, then slowed down before rising again last year.
On the 20th of last month (local time), President Trump warned at a White House signing ceremony for an executive order, “One thing they (the EU) can do quickly is buy American oil and gas. We will fix this with tariffs, and if not, they will have to buy our oil and gas.” President Trump declared a national energy emergency and lifted most bans on oil and gas drilling off the U.S. coast, openly promoting the activation of American energy development. He also lifted the Biden administration’s freeze on approvals for new LNG export plants.
The government is discussing responses to the economic impact of these changes, including on exports, but has yet to present clear measures. An official from the Ministry of Trade, Industry and Energy said, “It is premature to announce policy directions related to expanding imports of U.S. crude oil and LNG,” but added, “discussions are currently underway.”
While government policy discussions remain stalled, companies are finding it difficult to establish long-term strategies. Industry insiders unanimously emphasize the need for institutional support from the government and mention support measures for diversifying import sources. One industry insider said, “Importing U.S. products without guaranteed profitability goes against shareholder value,” emphasizing, “To encourage refiners to expand imports of U.S. crude oil, institutional support such as diversification assistance is necessary.”
Another insider said, “Whether to import crude oil or LNG depends on market prices, and it is not something the government can force private companies to do,” adding, “There will be areas where companies can cooperate depending on government policy trends. In such cases, policy elements must be prepared.” They also pointed out, “Refiners are aware of the pressure related to oil and gas coming from the U.S. and are watching the situation, so first, concrete government policies need to be announced to set a direction.”
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