Oil Industry Ready for Climate Change

KPA celebrates 30th anniversary with int’l symposium and show of clean diesel bus

Korea Petroleum Association (KPA) held its 30th anniversary on Dec. 15 with an international symposium on the direction of the oil industry and the strategy for the development of green cars in Yeouido, Seoul, with a slew of dignitaries attending including Rep. Kim Young-hwan, chairman of the Knowledge Economy Committee of the National Assembly, Vice Minister Park Young-joon of the Ministry of Knowledge Economy and KPA Chairman Oh Kang-yeon, among others.
Chairman Oh said in his opening speech at the ceremony that the 30th anniversary came at a significant time in the oil industry with clean environment is the most emphasized word in society. We are gathered here to discuss the development strategies for green cars, which would let the petroleum industry continue on effectively coping with the climate change agreement along with fuel and auto experts at home and abroad.
He said the petroleum industry in Korea has recorded a huge growth since its start in 1964, considering that Korea does not produce a drop of oil on its soil. Korea has a daily oil refining capacity for 3 million barrels the sixth largest in the world and consumes 2.3 million barrels of oil and its products daily, the 9th largest in the world, Chung claimed.
The oil industry has also became a loyal son to the national economic growth by exporting 60 percent of its oil products overseas lately worth $20 billion annually to some 50 countries in the world boosting Korea to rank the 14th largest in terms of economy in the world, sharing some 10 percent of total export proceeds earned by Korea. In the past half century of its growth, the industry has been turned into a major export industry from a domestic industry in the process, stabilizing national life and strengthening national competitive power.
But lately, the business environment has been changing greatly centered on the oil industry, the KPA chairman warned. He said all major countries in the world have been all out to win the competition in reducing greenhouse gas to cope with climate change and our government, too, has been taking measures by coming up with a new national vision called ‘low-carbon, green growth’ amid the global changes in paradigm to lead the future competition.
The petroleum industry, too, has joined the national efforts in such areas as the development of new recycled energy and replacement energy and in search of new growth engines including clean diesel and other environmentally friendly energy so that it can grow with the auto industry.
Dr. Chung Dong-soo of the Korea Machinery Research Institute, in the announcement of his thesis entitled, “The distribution of environmentally friendly fuel supply and cars that fit our reality,” said we have to improve our policies for clean cars to supply clean diesel powered hybrid cars and clean diesel to cope with the climate change agreement. Dr. Chung said in comparison of the Euro 5 clean diesel bus and CNG bus, the level of environment friendliness was the same but clean diesel bus had better fuel costs with 21 percent, which showed that clean diesel and diesel hybrid vehicles should be produced and supplied more until such time that electric vehicles are ready for commercial use in consideration of various factors such as environmental friendliness, economy, marketability, technology and safety features, among others. He said in the area of toxic gas emission, both clean cars were the same. He called for changes in government policies to provide support funds of 5.25 million won to buyers of CNG buses in fuel support and 18.5 million won in purchase incentives.
In the meantime, the clean diesel hybrid bus which was jointly by the Korea machinery Research Institute and Daewoo Bus was test-driven at the ceremony of the anniversary in the presence of a number of dignitaries including Rep. Kim Young-hwan, chairman of the Knowledge Economy Committee of the National Assembly, Vice Minister Park Young-joon of the Ministry of Knowledge Economy, KPA Chairman Oh, and Chairman Lee Sang-chon of the machinery research institute. The hybrid bus has an engine to burn diesel and an electric motor with less fuel cost down some 40 percent compared to CNG bus and emitting 20 percent less toxic gas. The bus is considered an optimum vehicle to be operated until the arrival of the age of electric cars. nw

(from left) Vice Minister Park Young-joon of the Ministry of Knowledge Economy and Korea Petroleum Association (KPA) Chairman Oh Kang-yeon each speak at an international symposium.