South Korea has no domestic crude oil production, and is completely dependent on imports for its oil consumption

needs. In 2006, South Koreas gross oil imports averaged 3 million barrels per day (bbl/d). South Koreas oil imports exceed consumption needs, as the country re-exports about a quarter of its gross oil imports as refined petroleum products, mostly to neighboring countries in East Asia. In 2006, South Korea consumed an estimated 2.2 million bbl/d of oil, making it the ninth-largest consumer of oil in the world and the fifth-largest net importer of oil.

Korea's domestic oil consumption from Jan. to May 2010

Korea's consumption of petroleum products from January to May 2010 recorded 327.1 million barrels, 0.8 percent decrease compared with the same period last year. Though the consumption of gasoline, jet oil and kerosene expanded mainly by strong domestic car sales and exports, the domestic consumption of petroleum products shrank due to the decrease of naphtha and B-C consumption. A sharp drop in B-C consumption in power generation and modest decline in industrial sector led an overall consumption decrease, though the consumption of most products increased including gasoline in transportation sector and heating oil in residential and commercial sector. The daily consumption marked 2,166 thousand barrels per day. In transportation sector, the effect of brand new passenger cars and the increase of Korea's total exports led an overall increase, 0.4 percent increase compared with the same period last year.

Residential & commercial sector marked 12.5 percent increase mainly led by kerosene for heating. In power generation sector, the decrease of B-C consumption led an overall decrease, 30.7 year on year percent decrease. In industrial sector, the consumption of chemical industry decreased 1.5 year on year percent due to the refinery maintenance of SK Energy and Hyundai Oil Bank.

Korea's exports and imports of Petroleum Products

Exports Korea's exports of petroleum products from January to May 2010 recorded 127.5 million barrels, 3.8 year on year percent decrease. Despite the recovery of gasoline and naphtha exports, the decrease of diesel(10.1%) and jet oil(9.0%) led an overall decrease by 3.8 percent compared with the same period last year. To China, though diesel and B-C decreased, jet oil and naphtha increased. And to Japan, though jet oil and diesel decreased, naphtha and gasoline led an overall increase. Also to US, exports of gasoline and jet oil led an overall 91.3 year on year percent increase, and to Chile, exports increased by 54.4 percent mainly led by diesel. Whereas, to Singapore, gasoline, diesel and jet oil dropped sharply except for B-C. Imports Korea's imports of petroleum products from January to May 2010 recorded 121.4 million barrels, 8.4 percent increase compared with the same period last year. The continuous boom in petrochemical industry contributed to increase the imports of naphtha, while the decrease of B-C consumption in power generation sector brought less imports of B-C.