{"id":19847,"date":"2024-12-26T10:00:12","date_gmt":"2024-12-26T01:00:12","guid":{"rendered":"https:\/\/askinno.com\/global\/?p=19847"},"modified":"2025-12-15T16:26:12","modified_gmt":"2025-12-15T07:26:12","slug":"energy-tidbits-from-backup-plan-to-lifeline-the-vital-role-of-emergency-oil-stockpiles","status":"publish","type":"post","link":"https:\/\/askinno.com\/global\/archives\/19847","title":{"rendered":"[Energy Tidbits] From backup plan to lifeline: The vital role of emergency oil stockpiles"},"content":{"rendered":"<div style=\"width: 100%; max-width: 11240px; border: 2px solid #d5d5d5; padding: 5px 0px; line-height: 26px; font-size: 16px;\">\n<div style=\"padding: 0px 10px;\">\n<div style=\"margin-top: 10px; margin-bottom: 10px;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\"><strong>Energy Tidbits<\/strong> is a series to flavor your knowledge of energy industry with tasty tidbits.<br \/>\n<\/span><\/span><\/div>\n<\/div>\n<\/div>\n<p style=\"text-align: left;\">\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-19848\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778.jpg\" alt=\"\" width=\"1000\" height=\"563\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778.jpg 1000w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778-300x169.jpg 300w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778-768x432.jpg 768w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778-250x141.jpg 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778-600x338.jpg 600w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778-700x394.jpg 700w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778-800x450.jpg 800w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uba54\uc778-320x180.jpg 320w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">Oil prices quadrupled in just three months, causing factories to halt operations and leaving households unable to heat their homes. In Maryland, USA, people queued for nearly 8 kilometers at gas stations in a desperate attempt to buy fuel. The crisis led to violent incidents over fuel access. Gas stations used flags\u2014green for available fuel and red for none\u2014and implemented a system where cars with even-numbered license plates could refuel on even-numbered days, and odd-numbered plates on odd days. This was a direct result of the first oil crisis, sparked 50 years ago by the 1973 Yom Kippur War in the Middle East.<\/span><\/p>\n<figure id=\"attachment_19838\" aria-describedby=\"caption-attachment-19838\" style=\"width: 667px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19838\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88.jpg\" alt=\"\" width=\"677\" height=\"550\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88.jpg 800w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88-300x244.jpg 300w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88-768x624.jpg 768w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88-250x203.jpg 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88-600x488.jpg 600w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88-700x569.jpg 700w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88-222x180.jpg 222w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_-1\ubc88-738x600.jpg 738w\" sizes=\"auto, (max-width: 677px) 100vw, 677px\" \/><figcaption id=\"caption-attachment-19838\" class=\"wp-caption-text\">\u25b2 A gas station employee indicating a fuel shortage (Source: <a style=\"text-decoration: underline;\" href=\"https:\/\/penglobalinc.com\/the-1973-oil-crisis-how-oil-became-a-weapon\" target=\"_blank\" rel=\"noopener\">PENGlobal<\/a>)<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/askinno.com\/global\/archives\/19847\/#_The_Crucial_Role_of_Oil_Stockpiles_During_Energy_Crises\" >| The Crucial Role of Oil Stockpiles During Energy Crises?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/askinno.com\/global\/archives\/19847\/#_Where_and_How_Is_Oil_Stockpiled\" >| Where and How Is Oil Stockpiled?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/askinno.com\/global\/archives\/19847\/#_The_history_of_South_Koreas_oil_industry_and_reserves\" >| The history of South Korea&#8217;s oil industry and reserves<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"_The_Crucial_Role_of_Oil_Stockpiles_During_Energy_Crises\"><\/span><span style=\"color: #e97132;\"><strong><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 15pt;\"><strong>| The Crucial Role of Oil Stockpiles During Energy Crises?<\/strong><\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">The first oil crisis was a stark wake-up call about the importance of stability in the global energy market. In its aftermath, the International Energy Agency (IEA) was established in 1974. Sixteen OECD member countries at the time, including the United States, West Germany, the United Kingdom, Canada, and Spain, agreed to cooperate in addressing energy crises. South Korea joined this global effort by becoming an IEA member in March 2002 to strengthen its energy security.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">Since its inception, the IEA has played a vital role in mitigating energy crises and stabilizing markets through the release of strategic oil reserves. During the Gulf War in 1991, when Iraq invaded Kuwait and destroyed its oil fields, the UN Security Council imposed an oil embargo on Iraq. To counter the resulting oil crisis, the IEA released approximately 17 million barrels of strategic reserves for the first time. In 2005, when Hurricane Katrina disrupted oil production facilities in the United States and Mexico, the IEA released about 60 million barrels to alleviate the crisis. Similarly, in 2011, the IEA released another 60 million barrels when the Libyan Civil War halted oil production in one of the major oil-producing countries. As an IEA member, South Korea contributed to this international effort by supplying 3.4 million barrels.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-19842 size-wcbig\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-800x435.png\" alt=\"\" width=\"800\" height=\"435\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-800x435.png 800w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-300x163.png 300w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-1024x556.png 1024w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-768x417.png 768w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-1536x834.png 1536w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-250x136.png 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-600x326.png 600w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-700x380.png 700w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-331x180.png 331w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-1105x600.png 1105w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG-1289x700.png 1289w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/03_ENG.png 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"_Where_and_How_Is_Oil_Stockpiled\"><\/span><span style=\"color: #e97132;\"><strong><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 15pt;\"><strong>| Where and How Is Oil Stockpiled?<\/strong><\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">To enhance the stability of oil supplies and prepare for market volatility, oil stockpiling generally falls into two main categories: &#8220;stockholding agreements&#8221; and &#8220;storage facilities.&#8221;<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 15pt;\"><strong>\u25a0 Stockpiling Agreements<\/strong><\/span><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">A &#8220;stockholding agreement&#8221; involves securing a specified amount of oil through contractual arrangements. This method is primarily used to guard against market fluctuations and ensure access to oil in emergencies. The contract between oil sellers and buyers is often referred to as a &#8220;ticket.&#8221; Buyers pay an agreed-upon amount in advance to secure the oil under the terms outlined in the contract. When governments use this method, they typically enter into agreements with private companies rather than operating storage facilities themselves. This approach reduces the burden on governments to maintain storage infrastructure and allows them to leverage the private sector&#8217;s capabilities.<\/span><\/p>\n<p><span style=\"color: #000000;\"><strong><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 15pt;\"><strong>\u25a0 Storage Facilities<\/strong><\/span><\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">While stockpiling agreements can be cost-effective by eliminating the need for secure oil without constructing the need for building storage facilities, they have the limitation of not involving physical oil possession. To address this, many governments around the world have established oil storage facilities, such as<strong> aboveground tanks (aboveground storage bases)<\/strong> and <strong>underground storage caverns (underground storage bases).<\/strong> Typically, above-ground tanks are suitable for storing up to 5.6 million barrels of crude oil, while underground storage caverns are more advantageous for larger quantities.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\"><strong>Aboveground tanks<\/strong> can be built relatively quickly, with a construction period of about 3 to 5 years. They are also easy to build and expand. However, they are generally more vulnerable to natural disasters, such as earthquakes, and have a shorter lifespan of around 15 years.<\/span><\/p>\n<figure id=\"attachment_19849\" aria-describedby=\"caption-attachment-19849\" style=\"width: 790px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19849 size-wcbig\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-800x533.jpg 800w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-300x200.jpg 300w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-1024x683.jpg 1024w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-768x512.jpg 768w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-1536x1024.jpg 1536w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-2048x1365.jpg 2048w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-250x167.jpg 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-600x400.jpg 600w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-700x467.jpg 700w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-270x180.jpg 270w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-900x600.jpg 900w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc6b8\uc0b0CLX-\ub4dc\ub860-\uc815\uae30\uac80\uc0ac-1-\uc5d0\ub108\uc9c0\uc2dd-1050x700.jpg 1050w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-19849\" class=\"wp-caption-text\">\u25b2 A routine inspection of ground tanks (crude oil storage tanks) using drones conducted at SK Innovation Ulsan Complex<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">In contrast, <strong>underground storage caverns<\/strong> are built hundreds of meters deep within salt layers or rock formations. They are resistant to shocks and temperature changes and can store oil for over 40 years. Additionally, they can be constructed beneath the seabed, offering efficient space utilization and suitability for large-scale storage.<\/span><\/p>\n<figure id=\"attachment_19843\" aria-describedby=\"caption-attachment-19843\" style=\"width: 790px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19843 size-wcbig\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-800x661.png\" alt=\"\" width=\"800\" height=\"661\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-800x661.png 800w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-300x248.png 300w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-1024x846.png 1024w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-768x635.png 768w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-1536x1270.png 1536w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-250x207.png 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-600x496.png 600w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-700x579.png 700w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-218x180.png 218w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-726x600.png 726w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558-847x700.png 847w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-\uc601\ubb38_\uc9c0\ud558.png 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-19843\" class=\"wp-caption-text\">\u25b2 Conceptual Diagram of an Underground Oil Storage Facility<span style=\"text-decoration: underline;\"> (<\/span><a style=\"text-decoration: underline;\" href=\"https:\/\/www.knoc.co.kr\/upload\/EBOOK\/sabo\/200\/sub\/sub2_3.html\" target=\"_blank\" rel=\"noopener\">Image courtesy of Korea Oil Love Webzine<\/a>)<\/figcaption><\/figure>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"_The_history_of_South_Koreas_oil_industry_and_reserves\"><\/span><span style=\"color: #e97132;\"><strong><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 15pt;\"><strong>| The history of South Korea&#8217;s oil industry and reserves<\/strong><\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">During the late Joseon Dynasty, as Western influences began to flow into Joseon (the name for Korea at that time), the country\u2019s first oil storage facility was established near the coast of Wolmido, Incheon. In 1897, Townsend &amp; Co. (Walter Davis Townsend), which had signed an exclusive oil import contract with Standard Oil, the largest American oil company at the time, built an oil storage warehouse capable of holding 500,000 boxes of kerosene on the eastern coast of Wolmido. This storage facility was popularly referred to as the \u201cWestern oil drum as large as Namsan\u201d and became a topic of great interest at the time. The first imported oil in Joseon was sold nationwide under the brand names \u201cSolpyo\u201d and \u201cSeungnipyo,\u201d packaged in wooden boxes.<\/span><\/p>\n<figure id=\"attachment_19839\" aria-describedby=\"caption-attachment-19839\" style=\"width: 353px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19839 size-full\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\uc194\ud45c.jpg\" alt=\"\" width=\"363\" height=\"464\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\uc194\ud45c.jpg 363w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\uc194\ud45c-235x300.jpg 235w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\uc194\ud45c-250x320.jpg 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\uc194\ud45c-141x180.jpg 141w\" sizes=\"auto, (max-width: 363px) 100vw, 363px\" \/><figcaption id=\"caption-attachment-19839\" class=\"wp-caption-text\">\u25b2 &#8216;Solpyo&#8217; Oil by Standard Oil, exclusively imported and sold by Townsend Company during the late Joseon Dynasty (Source: <a style=\"text-decoration: underline;\" href=\"http:\/\/contents.history.go.kr\/mobile\/km\/view.do?levelId=km_031_0030_0060\" target=\"_blank\" rel=\"noopener\">Our History Net<\/a>)<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">Subsequently, Joseon\u2019s oil market transitioned from a monopoly to a competitive arena, as companies from various countries, including Britain\u2019s Royal Dutch Shell, entered the market. In the 1930s, as Japan intensified its continental invasion and turned the Korean Peninsula into a military supply base, it began stockpiling oil and constructing refining facilities. To support these efforts, Japan established Chosun Oil in 1935 and completed the Wonsan Refinery in 1938, producing 300,000 tons of oil annually.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">After Korea&#8217;s liberation, the supply of petroleum products in South Korea was managed by the Petroleum Distribution Agency (PDA) under the US military government, which began to establish a supply system. In 1949, the Korea Oil Storage Company (KOSCO) was founded to oversee the storage and sale of petroleum products. During the Korean War, as companies like Standard Oil withdrew, KOSCO also handled direct sales of petroleum products. Following the war, to meet the rising demand for oil, the government signed an oil operation agreement with the United States in 1955, laying the groundwork for a stable oil supply. On October 13, 1962, amid the lack of industrial infrastructure following the Korean War, South Korea&#8217;s first oil refining company, now known as SK Innovation, was established. This marked the beginning of a new era in South Korea&#8217;s petrochemical industry, becoming a driving force for competitive growth and innovation.<\/span><\/p>\n<figure id=\"attachment_19850\" aria-describedby=\"caption-attachment-19850\" style=\"width: 582px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19850 size-full\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\ub300\ud55c\uc11d\uc720\uacf5\uc0ac-\uc900\uacf5\uc2dd.jpg\" alt=\"\" width=\"592\" height=\"431\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\ub300\ud55c\uc11d\uc720\uacf5\uc0ac-\uc900\uacf5\uc2dd.jpg 592w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\ub300\ud55c\uc11d\uc720\uacf5\uc0ac-\uc900\uacf5\uc2dd-300x218.jpg 300w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\ub300\ud55c\uc11d\uc720\uacf5\uc0ac-\uc900\uacf5\uc2dd-250x182.jpg 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\ub300\ud55c\uc11d\uc720\uacf5\uc0ac-\uc900\uacf5\uc2dd-247x180.jpg 247w\" sizes=\"auto, (max-width: 592px) 100vw, 592px\" \/><figcaption id=\"caption-attachment-19850\" class=\"wp-caption-text\">\u25b2 Completion ceremony of the first oil refinery by the Korea National Oil Corporation in 1964 (the predecessor of SK Innovation)<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">After the first oil shock in the 1970s, South Korea took steps to prepare for energy emergencies by constructing its first oil reserve facility, the <em>Mapo Oil Reserve Base<\/em>, located on Maebongsan, Sangam-dong, Seoul, it housed five oil tanks. Currently, there are nine oil stockpile facilities across the country: Guri (1981), Ulsan (1981), Geoje (1985), Pyeongtaek (1989), Yongin (1998), Yeosu (1998), Gokseong (1999), Donghae (2000), and Seosan (2005).<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\"><em>The Mapo Oil Reserve Base<\/em> originally stored approximately 69.07 million liters of oil, enough to supply Seoul residents for about a month. However, it was closed in 2002 for safety reasons ahead of the FIFA World Cup jointly hosted by South Korea and Japan. In 2017, following a public idea competition, the site was transformed into the &#8220;Oil Tank Culture Park,&#8221; repurposing the facility as a cultural space.<\/span><\/p>\n<figure id=\"attachment_19840\" aria-describedby=\"caption-attachment-19840\" style=\"width: 690px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19840 size-wcstandard2\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-700x468.jpg\" alt=\"\" width=\"700\" height=\"468\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-700x468.jpg 700w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-300x201.jpg 300w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-1024x685.jpg 1024w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-768x514.jpg 768w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-250x167.jpg 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-600x401.jpg 600w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-800x535.jpg 800w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-269x180.jpg 269w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-897x600.jpg 897w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd-1047x700.jpg 1047w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference-\ube44\ucd95\uae30\uc9c0-\uc804\ub9dd.jpg 1265w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><figcaption id=\"caption-attachment-19840\" class=\"wp-caption-text\">\u25b2 Exterior view of the Oil Tank Culture Park (Source: <a style=\"text-decoration: underline;\" href=\"https:\/\/parks.seoul.go.kr\/template\/sub\/culturetank.do\" target=\"_blank\" rel=\"noopener\">Parks of Seoul<\/a>)<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">The previously vacant outdoor spaces within the oil reserve base were transformed into open playgrounds for children. Additionally, the oil tanks, ranging from 15 to 38 meters in diameter and 13 to 15 meters in height, were repurposed into community spaces such as classrooms, meeting rooms, and cafeterias. Notably, a tank that once stored diesel was transformed into an outdoor stage and performance venue, while another that stored gasoline was converted into a Glass Pavilion, a multipurpose space for exhibitions and workshops. These transformations have established the site as a vibrant cultural space for the community.<\/span><\/p>\n<figure id=\"attachment_19841\" aria-describedby=\"caption-attachment-19841\" style=\"width: 690px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-19841\" src=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\ud0f1\ud06c.jpg\" alt=\"\" width=\"700\" height=\"436\" srcset=\"https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\ud0f1\ud06c.jpg 546w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\ud0f1\ud06c-300x187.jpg 300w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\ud0f1\ud06c-250x156.jpg 250w, https:\/\/askinno.com\/global\/wp-content\/uploads\/sites\/2\/2024\/12\/\uc5d0\ub108\uc9c0\uc2dd-reference_\ud0f1\ud06c-289x180.jpg 289w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><figcaption id=\"caption-attachment-19841\" class=\"wp-caption-text\">\u25b2 Interior view of an oil tank at the Oil Tank Culture Park (Source: <a href=\"http:\/\/\u25b2 Interior view of an oil tank at the Oil Tank Culture Park (Source: Parks of Seoul\">Parks of Seoul<\/a>)<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">Today, oil stockpiling serves as the last line of defense in maintaining stability amid global energy crises. Ensuring a stable energy supply is a critical task that directly impacts a nation&#8217;s economy and the livelihood of its citizens. As the world&#8217;s fourth-largest oil importer, South Korea is particularly susceptible to fluctuations in global oil prices.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\">In addition to strategic oil reserves, developing independent oil resources is essential for enhancing energy security. South Korean companies are shifting from merely participating in oil ventures to securing direct operational rights. SK Innovation&#8217;s oil exploration subsidiary, SK Earthon, has acquired operating rights in oil fields in China, Vietnam, and Malaysia, reflecting this strategic shift. To remain resilient amid uncertain changes, thorough preparation for the future is crucial. This underscores the importance of South Korea&#8217;s oil stockpile facilities and independent overseas oil field operations in ensuring energy stability.<\/span><\/p>\n<div style=\"width: 100%; max-width: 11240px; border: 2px solid #d5d5d5; padding: 5px 0px; line-height: 26px; font-size: 16px;\">\n<div style=\"padding: 0px 10px;\">\n<div style=\"margin-top: 10px; margin-bottom: 10px;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\"><span style=\"font-family: 'Nanum Gothic', sans-serif; font-size: 13pt;\"><strong>\u25a0 Related articles <\/strong><br \/>\n&#8211;<a href=\"https:\/\/askinno.com\/global\/archives\/19349\" target=\"_blank\" rel=\"noopener\"> [Energy Tidbits] From liquor casks to the global standard for crude oil \u2013 the amazing transformation of the barrel<\/a><br \/>\n&#8211;<a href=\"https:\/\/askinno.com\/global\/archives\/18708\" target=\"_blank\" rel=\"noopener\"> [Energy Tidbits] How kerosene that once illuminated the night now powers giant airplanes<\/a><br \/>\n&#8211;<a href=\"https:\/\/askinno.com\/global\/archives\/18332\" target=\"_blank\" rel=\"noopener\"> [Energy Tidbits] From \u201cLight and Salt\u201d to \u201cLight and Petroleum,\u201d discovering the secrets behind \u201ctreasure hunts\u201d through the evolution of drilling techniques<\/a><br \/>\n&#8211;<a href=\"https:\/\/askinno.com\/global\/archives\/18167\" target=\"_blank\" rel=\"noopener\"> [Energy Tidbits] Petroleum was a key ingredient in ancient mummification?<\/a><\/span><\/span><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Energy Tidbits is a series to flavor your knowledge of energy industry with tasty tidbits. Oil prices quadrupled in just three months, causing factories to halt operations and leaving households unable to heat their homes. In Maryland, USA, people queued for nearly 8 kilometers at gas stations in a desperate attempt to buy fuel. The &#8230; <a title=\"[Energy Tidbits] From backup plan to lifeline: The vital role of emergency oil stockpiles\" class=\"read-more\" href=\"https:\/\/askinno.com\/global\/archives\/19847\" aria-label=\"Read more about [Energy Tidbits] From backup plan to lifeline: The vital role of emergency oil stockpiles\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":19860,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1908,1910],"tags":[701,1801,921,1800],"class_list":["post-19847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy-insight","category-energy","tag-oil","tag-oil-crisis","tag-petroleum","tag-stockpiles"],"acf":[],"_links":{"self":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/19847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/comments?post=19847"}],"version-history":[{"count":25,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/19847\/revisions"}],"predecessor-version":[{"id":153606,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/19847\/revisions\/153606"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media\/19860"}],"wp:attachment":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media?parent=19847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/categories?post=19847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/tags?post=19847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}