International oil prices continue to rise. OPEC has announced increased production and still, on Wednesday petrol recorded the highest prices ever in the United States. Korea imports a lot of Dubai oil, which has risen by US$6 compared to a month ago. Demand is not shrinking in the US or China and there are limits to securing additional supply so the high prices are expected to be the trend for a considerable time to come. It is time to review short and long-term strategies and increase the level of implementation. The fact that the fall in the exchange rate against the dollar is making up for the difference in the high price of oil is not reason to relax.
Most important will be making energy use more effective. Though that point has long been emphasized it has not led to ample action. To begin with, Korea's heavily energy-dependent industrial structure needs to be gradually changed to one that is less so. After the "oil shock" of the 1970's Japan began persistent work in that area and today has accomplished much. Conserving energy has to become an everyday habit in Korean homes. So far Koreans have saved energy when oil prices rise significantly only to forget the importance of doing so and act like nothing had ever happened once prices go down again. Now that the Kyoto Protocol has taken effect, however, energy use has to consider the environmental aspects. So, for various reasons, efficient energy use is something that can be delayed no longer.
There has to be more work on foreign energy development. Government and business need to see the issue as a matter of national importance and work together to figure out ways for responding in an organized way to the situation. Energy cooperation with Northeast Asian nations such as China, Russia, and North Korea must also be explored.
The Hankyoreh, 18 March 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] Oil and Long-Term Energy Strategy |
