• International Commerce and Information Review
• /
• v.11 no.2
• /
• pp.127-145
• /
• 2009

With increase in oil demand owing to economic growth in Northeast Asia, the establishment of an oil hub in Korea is recently considered by policy and academic circles. This paper aims to suggest strategic schemes on the establishment of Korea's oil hub in Northeast Asia by comparing Korea's conditions as an oil logistics hub with Singapore which has been an oil hub in East Asia until recent year. Quantitative and qualitative analysis methods were employed in order to examine the competitiveness of Korea's oil hub. This research concludes that Korea is very competitive as an oil logistics hub in Northeast Asia, but so much improvements for realizing the project are necessary such as expansion of storage facilities for oil, institutional instruments for facilitating oil logistics and trading and preparation for incentive schemes on foreign investments in oil and its related industries.

• Proceedings of the KSR Conference
• /
• 2008.11b
• /
• pp.782-788
• /
• 2008

Present Prices have reduced to $100 per barrel, but international oil prices caused big damage to local logistics industry due to rise in International oil prices and, in august 2008 oil prices reached up to 146 US. Depending on oil prices, the domestic logistic industry should develop a strategy by innovative management of purchase of supply for manufacturing industry and efficient supply and demand of resources which is believed to be more important. Accordingly, we want to analyze railroad logistics' present condition and effect on railroad industry that can expect affirmative development by oil-price rise and by developing strategies for efficient railroad logistics.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
• /
• 2015.10a
• /
• pp.253-255
• /
• 2015

Crude oil is the world's most actively traded commodity and also one of the most significant resources in the world. The impact of oil price volatility has great influences on macroeconomic activities. This presentation is to review and analyze the oil price fluctuation and to examine the effects especially on the offshore oil production and thereafter to look over the challenges and opportunities in this sector focusing on the petroleum logistics.

• Proceedings of the Korean Institute of Navigation and Port Research Conference
• /
• 2002.03a
• /
• pp.73-87
• /
• 2002

• Korea Trade Review
• /
• v.44 no.6
• /
• pp.105-118
• /
• 2019

In the past two decades, due to the rapid fluctuations in the oil supply and demand in Northeast Asia as well as a surge in oil prices in the early 2000s, Korea has been developing the Northeast Asia Oil Hub project as a national project. This project was promoted based on the policy consideration that the nation's energy security and regional development can be promoted by establishing an oil hub in Northeast Asia that can eventually replace Singapore as East Asia's oil logistics hub. Following the construction of a large-scale oil storage facility in Yeosu in 2013, the main project in Ulsan has suffered many difficulties due to environmental changes such as the supply and demand of oil and political factors. The survey, which investigated the performance, problems, and prospects of the oil hub project, illustrates that scores of all sectors are of average level. In terms of performance and prospects, policies such as facility investment, law, and system improvement were determined to be rather high while operational areas such as value-added activities, profitability, and marketing activities were perceived as having more serious problems by respondents. In conclusion, despite the strong potential of Korea's oil hub based on its geographical location, facilities, and oil product capacity, there are problems related to policies, institutions, and investment. In the future, the oil hub business should be reviewed by considering environmental factors, and a drastic improvement plan for attracting foreign investors and oil traders should be established.

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

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.41
• /
• pp.169-183
• /
• 2009

This study has been conducted under the background of the high rocketed international oil price in the mid of the 2008 year. Korean logistics industry then suffered from a harsh labor strike which paralyzed temporarily Korean exports and imports activities mainly due to the rising motor fuel prices. The theme of this study started from the highly practical question: what would be the impact of the soaring crude oil price on the cost structure of the Korean logistics industry? For this practical question this study conducted an input-output analysis utilizing the 2003 year benchmark input-output table, published by the Bank of Korea in 2007.

• Journal of the Economic Geographical Society of Korea
• /
• v.5 no.1
• /
• pp.5-24
• /
• 2002

The purpose of this study is to analyze the distribution structure and the logistics system of light petroleum products from the spatial perspectives. The consumption structure of petroleum products has been changed since the mid 1980s. The growth rate of consumption for light products has been much faster than those of heavy products. The distribution structure of the petroleum products is hierarchically established by refining companies, agencies, and gas stations. The petroleum products agencies are distributed unevenly over the country, and the number of gas stations per one petroleum agency are very differentiated by the region. The light products are directly transported from refining factories to oil storages and then are carried to gas stations. According to the locational characteristics, oil storages which play a key role in the logistics system are categorized into three type. The first type is demand-oriented oil storages which are located near or in the large cities to supply the light petroleum products. The second type is harbors-oriented oil storages which are located within harbors. The third type is railway-oriented oil storages which are located along railway stations. In this study, the thresholds of one oil storage and one gas station are calculated based on the size of supply territory for each oil storage. The average number of population demand that allow a oil storage to stay in business is 1.9 million and average number of cars are 477,200.

• Journal of Navigation and Port Research
• /
• v.27 no.3
• /
• pp.289-295
• /
• 2003

The international oil majors have been reducing the size of their own oil tanker fleet since early 1980s. Like international oil majors, the Korean refineries are becoming more dependent on tanker chartering rather than tanker ownership for their oil transportation since the 1990s. They also prefer spot charter to time charter and this kind of trend has continued up to now. Consequently, this paper attempted to find the factors influencing changes in tanker fleet composition. To attain the object of the paper, an empirical study is adopted using the ten decision-making factors derived from preceeding studies. The findings are that MARPOL and OPA 90, and transportation costs are the most important factors influencing an oil tanker fleet composition.

• International Commerce and Information Review
• /
• v.14 no.3
• /
• pp.209-227
• /
• 2012

Northeast Asia where is an epicenter of the global financial crisis's conquest is traditional imbalanced region of oil production and consumption. In recent years, the region has been suffered by the shortage of oil storage and transportation facilities due to surging oil trading and necessity in strategic reserves. Therefore, since independent petroleum logistics with the storage facilities and oil trading hub is required to form efficient oil market in this region. In this study, we analyzed the efficiency of refinery facilities by country that is of importance in being a logistics hub in Northeast Asia by employing non-static and dynamic efficiency analysis, which are a part of DEA(Data Envelopment Analysis) and then policy implications have been drawn. The result illustrates Korea's is the highest country in terms of efficiency of oil refining facilities in Northeast Asia. It implies that Korea has strong position to be the oil hub in Northeast Asia.