South Korea Initiates Nationwide Energy Conservation Amid Oil Supply Concerns

South Korean President Lee Jae-myung has called for a nationwide energy-saving initiative in response to potential risks to oil and natural gas supplies due to the conflict in Iran. According to RTHK, public institutions in South Korea will reduce the use of official vehicles as part of this effort. The South Korean government plans to draft a supplementary budget of 25 trillion won, equivalent to $16.6 billion, which may include consumer vouchers and financial support for businesses. This proposal is expected to be submitted to the National Assembly by the end of the month. President Lee emphasized at a cabinet meeting that the priority is not to save government finances but to quickly and effectively allocate funds to areas in need. Energy and Environment Minister Kim Seong-hwan stated that current vehicle restrictions in the private sector are voluntary, but measures may be adjusted if the energy alert level rises. The government will request the top 50 oil-consuming companies to reduce usage and encourage staggered work hours and other energy-saving measures. Additionally, South Korea plans to restart five nuclear reactors in May, ease restrictions on coal-fired power plants, and expand the use of renewable energy to reduce long-term reliance on liquefied natural gas. South Korea currently holds approximately 190 million barrels of oil reserves, with the government owning 100 million barrels and private refineries holding 90 million barrels. According to International Energy Agency standards, these reserves could last for 208 days. However, South Korean officials note that this figure does not account for petrochemical exports, suggesting a shorter buffer period. Analysts, using data from the Korea National Oil Corporation, estimate that with a daily consumption of 2.9 million barrels in 2024, the reserves may last less than two months. The South Korean government has secured a commitment from the United Arab Emirates to supply 24 million barrels of oil, though the exact delivery timeline remains unclear.