• Journal of the Korean Operations Research and Management Science Society
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• v.6 no.1
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• pp.57-64
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• 1981

The continuous increase of crude oil consumption has struck great impact into the world economy, When we consider disadvantageous articles in contract for oil import, it would be desirable to import in batch the total quantity of crude oil contracted, but which is not available under the present situation which has many constraints This paper treats of the ways to deliver the crude oil in a given period so as to maximize the profit derived from the sales of oil products, To do this we should consider the prices of crude oil and oil products, inventory cost, transportation cost, oil refinement cost, and fluctuations of these parameters in a given period. The case of Korea Oil Corporation is treated in this paper to generalize the problem of crude oil transportation from Middle East and formulated in a mathematical programming. This programming is transformed into Dynamic Programming through specifing states, stages, payoffs, and recursive function. To clarify these procedure and methods, the case of Korea Oil Corporation is dealt with again and demonstrated in detail.

• Asia-Pacific Journal of Business
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• v.13 no.2
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• pp.39-50
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• 2022

Purpose - The purpose of this study is to examine how Korea's macroeconomic factors, such as GDP, CPI, Export, Import, Unemployment rate and USD/KRW exchange rate, are affected by the oil price shocks. Design/methodology/approach - This study used monthly and quarterly time-series data of each variable for the period 1983 to 2022, consisting of two sub-periods, to employ Granger causality test and GARCH method in order to identify the role of the oil price movement in macroeconomic factors in Korea. Findings - Korea's currency rate to the US dollar is negatively correlated with the price change of crude oil while the GDP change is positively correlated with the price change of crude oil with strong relationship between Export and Import in particular. The exchange rate and GDP growth are believed to be not correlated with the oil price change for the pre-GFC period. According to the Granger causality test, the price change in crude oil has a causal impact on CPI, Export and Import while other factors are relatively slightly affected. Transmission effect from the oil price to Export is found and there also exists volatility spillover from oil price to economic variables under examination. Comparing two sub-periods, CPI and Export volatility responds negatively to shocks in the oil price for the pre-GFC period while volatility of CPI and Unemployment reacts positively to the oil price shocks for the post-GFC period. Research implications or Originality - The findings of this study could be helpful for both domestic and international investors to build their portfolio for the risk management since rising WTI price can be interpreted as a result of global economic growth and ensuing increase in the worldwide demand of the crude oil. Consequently, the national output is expected to increase and the currency is also expected to be strong in the long run.

• International Commerce and Information Review
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• v.10 no.3
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• pp.459-474
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• 2008

Under violent competition to secure international raw materials, safe supply and demand of crude oil that only relies on import among main raw materials is an important task for Korean economic development. Therefore, this study aims to analyze the impact of price change of international crude oil on merchandise balance. It also presents political suggestions in preparation for national economic development and safety and develops an organized and long-term overseas resources development program. As the time-series data which had the 1st difference contribute to dismissal of the null hypothesis successfully, we carry out a multivariate cointegration test developed by Johansen (1988) and find that at least one cointegration vector exists. And, when Impulse Response Function is introduced, as the crude oil import price shows a negative impact from Step 2, then an extreme change, a positive impact since Step 13, is maintained and a safe result appears.

• Journal of Information Processing Systems
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• v.20 no.1
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• pp.93-104
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• 2024

China is playing more predominant role in the liquefied natural gas (LNG) market worldwide and LNG import price is subject to various factors both at home and abroad. Nevertheless, previous studies rarely heed a multiple of factors. A time-varying parameter factor augmented vector auto-regression (TVP-FAVAR) model is adopted to discover the determinants of China's LNG import price and their dynamic impacts from January 2012 to December 2021. According to the findings, market fundamentals have a greater impact on the import price of natural gas in China than overall economic demand, financial considerations, and world oil prices. The primary determinants include domestic gas consumption, consumer confidence and other demand-side information. Then, there are diverse and time-varying spillover effects of the four common determinants on the volatility of China's LNG import price at different intervals and time nodes. The price volatility is more sensitive and long-lasting to domestic natural gas pricing reform than other negative shocks such as the Sino-US trade war and the COVID-19 pandemic. The results in this study further proves the importance of domestic natural gas market liberalization. China ought to do more to support the further marketization of natural gas prices while working harder to guarantee natural gas supplies.

• Advances in Energy Research
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• v.3 no.2
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• pp.97-115
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• 2015

Energy holds key to economic growth and prosperity of India. Currently, India has very high-energy import dependence, especially in the case of crude oil (80%) and natural gas (40%). Even coal import has been increasing over the years. Considering India's population growth, emphasis on manufacturing, production, and service industry, energy consumption is bound to increase. More fossil energy consumption means greater dependence on energy import leading to widening trade deficit and current account deficit. Therefore, exploitation of indigenous renewable energy production is necessary. The paper reviews the progress and growth of renewable energy production, distribution, and consumption in India. The paper highlights some of the enablers of renewable energy in India. The authors discuss the opportunities and challenges of increasing share of renewable energy to reduce energy import and address issues of energy security in India. The findings suggest that India is ready for a quantum leap in renewable production by 2022.

• Food Science and Industry
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• v.50 no.4
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• pp.65-81
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• 2017

In Korea, sesame oil has been used as a flavor source mainly by edible oil since ancient times, and it has been used by domestic screw pressing. In the 1960's, the demand for edible oils and fats increased significantly due to the improvement of national income and changes in food consumption patterns. In the early 1970's, a few edible oil manufacturing companies with modern solvent extraction and refining plants were established. In Korea, edible oil manufacturers account for more than 85% of employees with 50 or fewer employees. In Korea, there is a very shortage of raw materials for edible oils and fats, domestic production of edible oil is decreasing year by year and import volume is continuously increasing. While importing the edible oil bearing ingredients including soybean and extracted oil in the past, recently mainly imports crude oil and refines it in Korea. Soybean oil, palm oil and tallow account for 70~90% of total imported edible oils. Due to the recent well-being trend, the demand for olive, canola and grapeseed oils as household edible oil has increased and the production of blended oil has been greatly increased. Since the late 1980's, people have recognized edible oil and fat as a food instead of seasoning ingredient and have increased their edible oil and fat intake in Korea. Since the early 2000's, refined oil and fat products produced in Korea have been exported and is increasing every year.

• Environmental and Resource Economics Review
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• v.18 no.1
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• pp.139-158
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• 2009

With the sample of Middle East crude oil imported to South Korea, this study empirically analyzes the effectiveness of the risk management strategies using derivatives such as futures and options. Assuming the hedging period of one to twelve months, it considers a spot purchasing strategy, 1 : 1 futures hedge strategy, OLS-based minimum-variance futures hedge strategy, buying call option strategy, and collar transaction strategy. According to the ex-ante result, using the derivatives of futures or options makes lower the procurement costs when the crude oil prices is increasing. With the hedging period less than or equal to six months, the hedging strategy using futures turns out to be superior in terms of procurement cost reduction and hedging effectiveness improvement. In contrast, the hedging strategies of buying call option and collar transaction would generate better results when the hedging program last over six months.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.41
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• pp.169-183
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• 2009

This study has been conducted under the background of the high rocketed international oil price in the mid of the 2008 year. Korean logistics industry then suffered from a harsh labor strike which paralyzed temporarily Korean exports and imports activities mainly due to the rising motor fuel prices. The theme of this study started from the highly practical question: what would be the impact of the soaring crude oil price on the cost structure of the Korean logistics industry? For this practical question this study conducted an input-output analysis utilizing the 2003 year benchmark input-output table, published by the Bank of Korea in 2007.

• Journal of Navigation and Port Research
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• v.39 no.2
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• pp.89-97
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• 2015

The rising spate of piracy in Nigeria's territorial waters has become a burden on the economic development of the country. It has adversely affected the exportation of crude oil, which is the mainstay of the country's economy. Pirates target and hijack vessels carrying oil and gas, thus reducing the revenue accruable to the country from selling these resources. Piracy also affects the fishing industry which is another source of revenue to the country. Nigeria, as an import dependent country, relies on the importation of finished goods, and this is seriously affected by piracy. This study briefly examines the root causes of piracy in Nigeria. Further, the study interrogates the effects of piracy, identifies the challenges in the suppression of the crime and proffers suggestions toward suppressing the crime in the country. Against this backdrop, the study argues, among other things, that an expansive definition of piracy is key in the fight against this maritime crime in Nigeria, because the present legal regime is restrictive and limited in scope, thus, it does not reflect the modern piratical acts. More importantly, Nigeria must criminalise piracy in its domestic law in other to police its territorial waters, capture and prosecute pirates in its local courts.

• International Area Studies Review
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• v.20 no.1
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• pp.23-51
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• 2016

This study analyzed the expected economic effects of the Korea-GCC FTA and sought strategies for industrial cooperation. To see the economic effects of Korea-GCC FTA, we analysed the effect of the oil tariff reduction of economy by Vector Autoregression(VAR) model. The estimation results shows that following the abolishment of the tariff on crude oil imports, GDP, GNI and consumption are expected to grow by 0.212%, 0.389% and 0.238%, respectively. Meanwhile, investment, export and import are estimated to drop by 0.462%, 0.413% and 0.342%, respectively. As for prices, producer prices are to rise by 6.356%p, whereas consumer prices fall by 2.996%p. In short, the Korea-GCC FTA and resultant abolishment of the tariff on crude oil imports followed by the decline in crude oil prices will result in declining prices whilst macroeconomic indices, such as GDP, GNI and consumption, will increase exerting positive effects on domestic economic growth. Also, it is necessary to proactively respond to GCC member states' industrial diversification policies for FTA-based industrial cooperation to diversify the sources of crude oil and natural gas imports for further resource risk management.