Korea Weighs Doubling Oil Storage Capacity Amid Middle East Tensions

The South Korean government is reconsidering its strategic oil storage capacity in light of the ongoing Middle East conflict. Initially, plans were to expand capacity by 20 million barrels, but now discussions are underway to double this target to between 30 and 40 million barrels.

This expansion would bring the country's total oil storage capacity to around 176 million barrels, with government-run facilities holding about 100 million barrels of government-owned reserves and roughly 30 million barrels of crude held as international joint reserves.

Analysts point out that the original plan may not have been sufficient to meet emergency needs, given Korea's reliance on oil imports and exports. In fact, the country currently holds around 190 million barrels of oil reserves, equivalent to more than 200 days of supply, well above the International Energy Agency's 90-day benchmark.

However, this calculation assumes that exports are halted in an emergency, which may not be realistic given Korea's international trade relationships. As Kim Jin-soo, a professor at Hanyang University, notes, 'Few countries import crude on the scale of Korea while also exporting large volumes of refined petroleum products.'