A forum was held on August 20 at the National Assembly Library to discuss the necessity of exploring the “East Sea Deepwater Gas Field.” The event, hosted by Representative Seung-Kyu Kang of the People Power Party, brought together academics and industry experts to highlight the potential benefits and strategic importance of domestic energy exploration for South Korea.

Professor Jong-Geun Choi of Seoul National University’s Department of Energy Resources Engineering emphasized the feasibility and potential profitability of such endeavors. “A 20% success rate for finding oil or natural gas is not a very low figure,” he stated. “Offshore drilling typically costs about 1.4 billion KRW per day due to deep water and increased external forces, but if successful in an energy-poor country like South Korea, it could yield a profit of 1 trillion won (approximately 740 million).”

The forum underscored South Korea’s heavy reliance on foreign energy, with an import dependency of 93.8% as of last year. This dependency poses significant risks to national security and economic stability. The self-development rate of energy resources has been declining annually since 2019, reaching only 10.5% in 2022, partly due to the stigma of resource corruption from past administrations.

Professor Jin-Soo Kim of Hanyang University highlighted the economic implications of this dependency. “The top ten export items, including semiconductors, automobiles, petroleum products, auto parts, synthetic resins, and ships, which account for 56.5% of Korea’s exports, are all energy-intensive industries,” he explained. “For Korea, failing to secure stable energy supplies means it will be difficult to maintain the current economic structure.”

Natural gas prices, directly linked to electricity prices, make it a crucial energy source. “While exploration may sometimes fail, it is essential to persistently pursue domestic exploration, learning from past experiences to directly strengthen energy security,” Professor Kim added.

Drawing a comparative analysis, Professor Yoon-Kyung Kim of Ewha Womans University introduced Japan’s proactive energy resource development efforts. Japan, under the support of the Japan Oil, Gas and Metals National Corporation (JOGMEC), achieved its self-development rate goal of ‘40% by 2030’ early in 2020 and has since raised its targets to 50% by 2030 and 60% by 2040. “When Japan announced the development of the Yamaguchi Gas Field in January 2022 for the first time in 30 years, Sankei evaluated that ‘producing even a small amount of energy domestically is important from an economic security perspective,'” Professor Kim noted, emphasizing the need to approach the project from an economic security perspective rather than a political issue.

Ji-Woong Choi, Team Leader of the Smart Data Center at Korea National Oil Corporation, addressed concerns about the environmental impact of oil development. “The notion that oil development contradicts carbon reduction efforts is a misconception,” he said. “Even in carbon neutrality, the use of oil is irreplaceable, and the demand for petrochemical products for developing new materials to enhance energy efficiency and reduce weight is actually increasing.”

Achieving carbon neutrality requires substantial investment, and given that South Korea spent approximately 200 trillion won on oil and gas imports last year, efforts to reduce expenditures or convert them into revenue are necessary. The forum concluded with a consensus on the importance of pursuing domestic energy exploration to enhance national security, economic stability, and energy independence.

Source: Businesskorea