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● Whale Oil Fiasco, Fact or Fiction?

Analysis of the Latest Global Economic and Energy Outlook – From CCUS Limitations to the East Sea Gas Field

1. The Reality of CCUS and Carbon Reduction Efforts

Both electric vehicles and fossil fuel vehicles have similar carbon dioxide emissions from the fuel used.
However, electric vehicles emit carbon in a limited space.
Therefore, expectations for carbon capture, utilization, and storage (CCUS) technology are increasing.
Currently, the amount of carbon dioxide processed through CCUS is about 0.02% of global emissions.
Even the target of processing 600 million tons by 2050 is extremely small compared to global emissions.
Given these technological limitations, the key is ultimately to reduce carbon emissions themselves.
In the economic and international markets, the focus of ‘carbon’ and ‘energy’ related policies is on carbon reduction and energy consumption reduction.

2. Carbon Emission Trading Scheme and Corporate Burden

As the world is working towards carbon reduction, the introduction of a carbon emission trading scheme is inevitable.
Carbon border adjustment taxes and trade protection measures on import and export products are already being planned.
Companies are facing cost burdens due to lack of preparation.
For practical reduction effects, the government and private sector must focus on establishing effective policies together.

3. Realistic Evaluation of the East Sea Gas Field and the Great Whale Project

The East Sea Gas Field was discovered in 1998 and produced for 17 years, representing a case of providing a stable energy supply to Korea.
On the other hand, the “14 billion barrels” scale claimed in the recent Great Whale Project is exaggerated when considering geological evidence and the success rate (20%).
For the discovery of promising initial structures to be reflected in the entire oil field, there are realistic challenges such as high drilling costs and success rate issues.
Korea’s energy exploration capabilities and strategic judgment are important in the international oil market and technological competition.

4. Energy Consumption Reduction and Alternative Energy Development Directions

Korea is heavily dependent on imports of fossil energy, making it vulnerable to energy security.
Unlike OECD advanced countries that are striving to reduce energy consumption, domestic consumption is rather increasing.
It is urgent to establish energy policies based on efficiency and conservation, as well as an alternative energy mix of renewable energy and nuclear power.
Structural improvements and increased investment are needed for the government and industry to jointly lead the future energy market.

Summary

Both electric vehicles and fossil fuel vehicles have similar carbon emissions, but electric vehicles are evaluated as eco-friendly because the carbon emission space is limited.
Currently, CCUS technology processes only a very small amount of global carbon dioxide emissions, so there are clear technological limitations.
Corporate burdens related to the introduction of the carbon emission trading scheme are increasing, and practical responses from the government and private sector are required.
Unlike the successful production experience of the East Sea Gas Field, the Great Whale Project’s claim of “14 billion barrels” is exaggerated when considering high drilling costs and low success rates.
In addition, Korea is heavily dependent on fossil energy imports, so it must focus on reducing energy consumption and developing alternative energy.
Future policies and investment strategies need to be reorganized around core keywords of the global economy such as economy, energy, international affairs, carbon, and market.

[Related Articles…]
Analysis of Carbon Reduction Policies
Energy Security and Future Prospects

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– 작년 한국을 뒤흔들었던 ‘산유국 프로젝트’ 대왕고래, 현실성 있는 이야기였나? 진실은 무엇인가? | 김광석의 콜라보 – 경제포차 양수영 2편