Seoul: The Korean government has elevated the crisis level for crude oil supply to "alert," marking the first time such a decision has been made. This is the third-highest level in the nation's four-tier warning system, which includes attention, caution, alert, and serious. Concurrently, the alert level for natural gas has been increased to "caution." In response, the government has tightened vehicle rotation schedules in the public sector from a one-in-five-day scheme to a two-day odd-even system. Additionally, starting April 8, public parking lots will adopt a five-day rotation system.
According to Yonhap News Agency, the Ministry of Climate, Energy and Environment has projected that the new two-day driving rotation system could save between 17,000 to 87,000 barrels of crude oil each month, while the restrictions on public parking might conserve an additional 5,000 to 27,000 barrels monthly. However, these savings appear minimal against Korea's daily consumption of approximately 2.4 million barrels, as per data from 2011. The timing of these measures is seen as delayed, emphasizing the need for more aggressive tactics to rebuild disrupted energy supply channels in the energy-dependent nation.
The situation has been exacerbated by U.S. President Donald Trump's recent national address, in which he indicated that the U.S. will target Iran for two to three weeks, potentially affecting global oil markets. This announcement has already influenced financial markets and increased oil prices, diminishing the initial confidence Seoul had in its strategic reserves, which have already decreased by 20 percent.
The government has primarily sought voluntary participation from the private sector in energy conservation efforts, but there is a growing recognition that mandatory measures may be necessary to mitigate the impact of supply disruptions. Meanwhile, the ongoing conflict has compounded issues on the ground in Korea, particularly with the supply of naphtha, crucial for manufacturing plastic goods. This has led to shortages in plastic trash bags at supermarkets and affected restaurant delivery services, raising concerns about waste disposal if government-designated food waste bags become scarce.
Korea's heavy reliance on Middle Eastern crude oil, approximately 70 percent of its imports, with about 90 percent of that transiting through the Strait of Hormuz, underscores the urgency of the situation. President Trump's call for nations receiving oil through this passage to ensure its security adds another layer of complexity, especially given Iran's intention to levy fees on ships passing through the strait. This situation presents challenges not only for Korea's energy security but also for its political and economic relations with the United States.