• International Commerce and Information Review
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• v.13 no.3
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• pp.119-142
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• 2011

Competitions for secure oil are intense around the world due to the limited oil reserves. The situations are becoming more serious as China has participated in the competition. This paper aims to investigate China's offshore oil development strategies to balance the supply and demand of oil and then suggest its policy implications. A surging increase of oil demand due to the rapid economic growth as well as the stagnation in domestic oil output has turned China into a net oil importer since 1993. Therefore, China has placed a significant priority on securing long-term stability of its offshore oil to cope with the rapid growing demand. It has taken a variety of strategies to secure stable oil resource such as development of offshore oil resource, increasing the number of oil importing countries. China with the highest foreign exchange reserve of approximately $3 trillion as of 2010, has considered to employ foreign exchange reserves while making a huge amount of investment to secure oil resource. China has pursued several policies such as loan to oil production country for securing oil, foreign direct investment on offshore oil development, M&A of oil exploration and production companies and geographical diversification of oil importing countries. China has promoted offensive strategies for securing oil resource rather than cooperation with other countries. Thus, China should find a trade-off point for recovering relationship with international society while developing and investing renewable energy for long-term future. It will also address some implications for Korea, which has to prepare new strategies of overseas oil development.

• Journal of Information Processing Systems
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• v.20 no.1
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• pp.93-104
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• 2024

China is playing more predominant role in the liquefied natural gas (LNG) market worldwide and LNG import price is subject to various factors both at home and abroad. Nevertheless, previous studies rarely heed a multiple of factors. A time-varying parameter factor augmented vector auto-regression (TVP-FAVAR) model is adopted to discover the determinants of China's LNG import price and their dynamic impacts from January 2012 to December 2021. According to the findings, market fundamentals have a greater impact on the import price of natural gas in China than overall economic demand, financial considerations, and world oil prices. The primary determinants include domestic gas consumption, consumer confidence and other demand-side information. Then, there are diverse and time-varying spillover effects of the four common determinants on the volatility of China's LNG import price at different intervals and time nodes. The price volatility is more sensitive and long-lasting to domestic natural gas pricing reform than other negative shocks such as the Sino-US trade war and the COVID-19 pandemic. The results in this study further proves the importance of domestic natural gas market liberalization. China ought to do more to support the further marketization of natural gas prices while working harder to guarantee natural gas supplies.

• Earthquakes and Structures
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• v.20 no.1
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• pp.109-122
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• 2021

Significant progress in the oil and gas industry advances the application of pipeline into an intelligent era, which poses rigorous requirements on pipeline safety, reliability, and maintainability, especially when crossing seismic zones. In general, strike-slip faults are prone to induce large deformation leading to local buckling and global rupture eventually. To evaluate the performance and safety of pipelines in this situation, numerical simulations are proved to be a relatively accurate and reliable technique based on the built-in physical models and advanced grid technology. However, the computational cost is prohibitive, so one has to wait for a long time to attain a calculation result for complex large-scale pipelines. In this manuscript, an efficient and accurate surrogate model based on machine learning is proposed for strain demand prediction of buried X80 pipelines subjected to strike-slip faults. Specifically, the support vector regression model serves as a surrogate model to learn the high-dimensional nonlinear relationship which maps multiple input variables, including pipe geometries, internal pressures, and strike-slip displacements, to output variables (namely tensile strains and compressive strains). The effectiveness and efficiency of the proposed method are validated by numerical studies considering different effects caused by structural sizes, internal pressure, and strike-slip movements.

• Environmental Engineering Research
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• v.22 no.3
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• pp.277-280
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• 2017

Destablization and demulsification is a difficult task for the treatment of waste oil-in-water drilling fluid because of its "three-high" characteristics: emulsification, stabilization and oiliness. At present, China is short for effective treating technology, which restricts cleaner production in oilfield. This paper focused on technical difficulties of waste oil-in-water drilling fluid treatment in JiDong oilfield of China, adopting physical-chemical collaboration demulsification technology to deal with waste oil-in-water drilling fluid. After oil-water-solid three-phase separation, the oil recovery rate is up to 90% and the recycled oil can be reused for preparation of new drilling fluid. Meanwhile, harmless treatment of wastewater and sludge from waste oil-in-water drilling fluid after oil recycling was studied. The results showed that wastewater after treated was clean, contents of chemical oxygen demand and oil decreased from 993 mg/L and 21,800 mg/L to 89 mg/L and 3.6 mg/L respectively, which can meet the requirements of grade one of "The National Integrated Wastewater Discharge Standard" (GB8978); The pollutants in the sludge after harmless treatment are decreased below the national standard, which achieved the goal of resource recovery and harmless treatment on waste oil-in-water drilling fluid.

• Korea Trade Review
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• v.47 no.3
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• pp.141-156
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• 2022

This study intends to examine the regional blocs of the international crude oil futures market by analyzing the dynamic conditional correlation between the international crude oil futures markets using the DCC-GARCH model. For statistical data, from April 2, 2018 to March 31, 2022, international crude oil futures prices such as Europe, the United States, China, and Dubai were used. To summarize the results of the study, first, the phenomenon of regional blocs in the international crude oil futures market is occurring, and it is found that it is gradually strengthening as time goes by. Second, it was found that the dynamic correlation of the international crude oil futures market is temporarily strengthened when a supply-demand imbalance problem occurs due to a global shock. Third, it was found that the volatility of the Chinese crude oil futures market affects the international crude oil futures market. This study confirmed that the regional blocs phenomenon in the international crude oil futures market is strengthened as time goes by. In particular, it suggested that China's influence in the international oil market would increase.

• Environmental and Resource Economics Review
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• v.17 no.2
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• pp.381-418
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• 2008

This study revisits the meaning of energy security by examining the oil market supply and demand conditions of petroleum products and refinery capacity of three Northeast Asian countries(Korea, China, Japan). In 2006, 10.6 million bid of excess demand occurred and is expected to be 15~22 million bid by the year 2030 in this regional oil market. Different oil demand is caused mainly by the different demands for various petroleum products based on each country's economic structures. If the demands are ranked according to their petroleum products, Chinese case shows gasoil > gasoline > fuel oil> LPG > naphtha > Kero/jet and Japanese case shows gasoil > gasoline> naphtha> Kero/jet > fuel oil > LPG, while Korean case shows naphtha> gas oil > fuel oil > LPG > Kero/jet > gasoline, respectively. Total CDU(Crude Distillation Unit) capacity of three northeast asian countries also have been examined in this respect. This study points out the importance of the information on oil demand and supply, on petroleum products and refinery capacities of the three Northeast Asian countries to enhance the security of the oil market in this region.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.2
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• pp.5-17
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• 2017

The main objective of the study is to measure the vulnerability of Indonesia's financial system stability in response to external shocks, including from regional economies namely three biggest Indonesia major trading partners (China, the U.S and Japan) and other external factors (oil price and the federal funds rate). Using Autoregressive Distributed Lag (ARDL) model and Orthogonalized Impulse Response Function (OIRF) with quarterly data over the period Q4 2002 - Q1 2016, results confirm that, 1) oil price response has the largest effect to Indonesia financial stability system and the effect period is the longest compared to others, represented by NPL and IHSG; 2) among those three economies, only China's economic growth has significantly positive effect to Indonesia financial stability system. Based on the findings it is better for the authorities to: 1) Diversify international trade commodities by decreasing share of oil, gas, and mining export and boosting other potential sectors such as manufacture, and fisheries; 2) Ensure the survival of Indonesia large coal exporter companies without neglecting burden of national budget; and 3) Create buffer for demand shock from specific countries by diversifying and increasing share of trading from other countries particularly from ASEAN member states.

• Proceedings of the Korea Committee for Ocean Resources and Engineering Conference
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• 2006.11a
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• pp.14-20
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• 2006

During the 11 year period of 1995-2005, there was about a 40% increase in the world copper demand mainly because of the Asian economic growth. In the increase, about a half was consumed by China. Most of the China's copper demand increase has been taken place over the final 5-6 years of that period. The growth is expected to continue for several years, and in 10 years or sooner the same situation is expected for India. Copper is the third metal in global demand, but its little abundance in the Earth's crust is not well recognized. From the production rate and the abundance, a copper shortage, or crisis, has a high probability than the other metals. Deep ocean mineral resources such as manganese nodules in the Clarion-Clipperton Fracture Zones, Kuroko-type massive seafloor sulfides (SMS), and cobalt-rich manganese crusts in the EEZ and the high sea areas have big potentials for the future sources. We need to re-evaluate their potentials as copper resources and other metals to realize their developments. The same situation is under progress in the hydro-carbon markets. Methane hydrates that are classified into non-conventional hydro-carbon resources have an important role as the future sources, too.

• Economic Analysis
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• v.27 no.4
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• pp.43-69
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• 2021

As the trade linkages and the financial relationship between China and Korea grow stronger, China's influence on Korea is also growing larger. Therefore, it is meaningful to examine key features of Chinese monetary policy operations and the current situation, and to analyze the transmission mechanism of China's monetary policy shocks onto the Korea economy. China's monetary policy shocks can have an impact on the Korea economy through the trade, financial and oil-price channels. In the trade channel, an expansionary Chinese monetary policy can increase Korea's exports of intermediate goods to China under the vertical trade structure, via the vertical trade integration effect. Meanwhile, the expenditure switching effect and the income demand effect show no statistical significance. In the financial and oil-price channels, expansionary Chinese monetary policy shocks can decrease the interest rate and increase both stock prices and the consumer price index in Korea through changes in global portfolio capital flows, interest rates, and raw material prices.

• Journal of Korea Port Economic Association
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• v.39 no.1
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• pp.149-172
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• 2023

In the Northeast Asian region, including Korea, China, and Japan, with rapid economic growth since the 1990s, intra-regional oil logistics has been increasing. Under such external circumstances, Korea has been pursuing a policy to become a Northeast Asian petroleum logistics hub since the mid-2000s. In order to become a Northeast Asian logistics hub, it is important to establish and promote a business model to promote the value-added oil logistics business. This study aims to propose policies and practical implications for increasing petroleum logistics by analyzing Korea's petroleum logistics business model in Northeast Asia. The results of case analysis through interviews with 23 tank terminal companies are as follows. First, most of the oil storage tank terminal companies interviewed are conducting value-added petroleum logistics such as blending, breaking bulk, and consolidation etc. Second, value-added petroleum logistics is caused by an imbalance in supply and demand among neighboring countries in Northeast Asia. In particular, there is a high demand for breaking bulk and blending connecting Japan, Oceania, the United States, and South America. Third, it is necessary to promote the promotion of value-added logistics by improving infrastructure, institutions, and regulations in response to the demand for value-added petroleum logistics, which will greatly contribute to Korea's policy for being Northeast Asian oil hub.