[EDITORIAL] Diversify energy sources
Oil prices keep rising, threatening to dampen the fragile recovery of the national economy. The price of Dubai crude oil, which accounts for 80 percent of the nation's oil imports, rose to $44.02 per barrel on Friday, renewing the record price for the fifth consecutive day. It represented a 28.9 percent rise from $34.15 at the end of last year.
The runaway oil prices also threaten to further pull down the nation's low economic growth estimate for this year. The Bank of Korea, which forecast the economy to grow 4 percent in 2005, assumed that the nation's oil import prices would average $34 per barrel. The upward trend in oil prices suggests the bank's assumption was a bit off the mark.
The steep rise in oil prices is partially offset by the recent sharp appreciation of the Korean won against the dollar. According to the Ministry of Commerce, Industry and Energy, the domestic gasoline price drops 3 won per liter when the Korean won gains 10 won against the dollar. But this offers us little consolation since a strong won undermines the competitiveness of Korean exports.
With the increase in oil supply instability, the government on Saturday decided to increase oil stockpiles from the present 109 days' supply to 135 days by 2008. It also decided to step up efforts to develop overseas oil fields to increase self-sufficiency in oil supply.
The decisions are well-counseled. As the world's fourth largest importer and seventh largest consumer of oil, Korea faces an urgent need to reduce its dependence on oil. But since the reliance on oil cannot be curtailed overnight, the government should make efforts to secure a stable supply of oil.
What lends urgency to such efforts is the rapid industrialization of China and India. The two countries are absorbing a greater portion of oil, as well as other raw materials, to fuel their rapidly growing economies and populations of more than 2 billion. We have to expect oil prices to remain high as long as the two giants seek to become industrial powerhouses.
This indicates the urgent need for Korea to develop alternative energy sources. Last Wednesday, the Commerce Ministry announced a plan to accelerate Korea's transition to a hydrogen-based economy. The use of hydrogen as a major source of energy could not only reduce Korea's dependence on oil but help it cut back on greenhouse gas emissions. Under the Kyoto Protocol on preventing global warming, Korea is likely to be obliged to reduce greenhouse gases for the years 2013-17.
But the transition to a hydrogen economy would take many decades due to the enormous technical, economic and infrastructure barriers. While hydrogen is definitely the way to go, it is a long-term energy approach. Hence the government is advised to keep a balanced portfolio of research and development efforts to enhance energy efficiency and develop alternative energy sources.
2005.03.07 (The Korea Herald)
*terms*
diversify: 1∼(의 모양.성질)을 다양화하다; ∼에 변화를 주다
2(기업이)<투자>의 대상을 넓히다, 경영을 다각화하다.
appreciation: (가격, 가치 따위의)상승, 등귀(↔depreciation)
consolation: 1.위안, 위로 2. 위안해 주는 사람, 위안해 주는 것
curtail: ∼을 줄이다, <기일 따위>를 단축하다
transition: 변천, 이동, 변화
emission: (빛·열·가스 등의)방사, 발산 ; (자동차 엔진 따위의)배기
*Questions
1.As you know, oil prices keep rising. In your opinion, what's the reason of this situation?
2.What's the effect of rising oil prices to Korean economy?
3.In this situation, we are required to use energy efficiently. Can you suggest a good way to do it?
4.Nowadays not only Korea but also other countries are trying to develop alternative energy sources. If you have a chance to do it, what do you want to develop? You can use your imagination.
*After a storm comes a calm: 고진감래(苦盡甘來)