Lowest in 5 years of domestic oil consumption last year

Lowest in 5 years of domestic oil consumption last year

Decreased consumption of jet fuel is the biggest reason

Input: 2021-04-04 13:06:19Revision: 2021-04-04 19:03:51Posted: 2021-04-04 14:02:36 (p. 14)

Last year, domestic petroleum consumption reached the lowest level in five years, due to the decrease in aviation fuel consumption caused by the corona 19 effect.

According to Petronet, an oil information site of the Korea National Oil Corporation on the 4th, due to the corona 19, domestic oil consumption last year was 87.11 million barrels, a 5.8% decrease from the previous year (93.195 million barrels).

Domestic oil consumption reached 900 million barrels from 2016 to 2019 after 857.25 million barrels in 2015, but fell below 900 million barrels in five years due to the impact of Corona 19 last year. In particular, the reduction in aviation fuel consumption was the greatest due to restrictions on overseas travel. Last year, domestic aviation fuel consumption was 21.7 million barrels, down 44% from the previous year.

However, this year, oil consumption is showing a recovery trend. According to the statistics for January and February, which have been compiled so far, in January it recorded 75.81 million barrels, and in February it recorded 72.4 million barrels.

Compared to the previous year, consumption in January decreased by 6.3%, but consumption in February recovered to the same level as the previous year.

Jet fuel consumption is still less than half of the previous year, but demand for other products, such as gasoline and naphtha, is nearing the previous level.

An industry insider said, “Domestic and overseas oil consumption is showing a recovery trend, and earnings are expected to improve this year due to rising refining margins, rising oil prices, and short supply due to natural disasters.” However, it is unclear whether the recovery of oil prices or refining margins will continue. It’s not that bright,” he said.

In particular, long-term oil consumption is expected to decrease due to the government’s eco-friendly policies and increasing demand for electric vehicles.

According to the Korea Energy Economics Institute, oil demand is expected to decline by 0.4% per annum after 2025 due to the conversion of hydrogen and electric vehicles, reaching 868 million barrels in 2040.

Accordingly, refineries are also in the mood to respond to the decline in oil consumption by entering new businesses. Recently, domestic oil refineries are jumping into new businesses such as hydrogen and fuel cells, venture investment, and life platforms.