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OilFinder2
Light Sweet Crude
Joined: Mar 26, 2008
Posts: 1143
Location: Seattle
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 Posted: Sun Jul 06, 2008 6:33 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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| OilFinder2 wrote: | | South Korean oil demand has been flat for several years. |
As I said.
South Korean oil demand through 2006.
source
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wisconsin_cur
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Joined: May 10, 2007
Posts: 2924
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| Posted: Sun Jul 06, 2008 6:35 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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| OilFinder2 wrote: | | wisconsin_cur wrote: | | OilFinder2 wrote: | | Sorry to say, but oil demand in Korea is a bit more elastic than you think. |
or not?
Crude inventories in S. Korea,
| Quote: | | SEOUL, June 20 (Reuters) - South Korea's commercial crude inventory fell nearly 37 percent by end-May from a year ago as high oil prices continued to discourage refiners from making new purchases, state-run Korea National Oil Corp (KNOC) said Friday. |
37%... ouch |
South Korean oil demand has been flat for several years. It would be nice to see actual recent figures, but I'd be willing to bet that much of the decline in crude imports represents decreased demand.
A decrease in storage does not necessarily mean a lack of supply, it could mean they don't want to have $140 oil sitting around idle in storage. It's getting too expensive to keep in storage, so they take a "lean inventory" approach.
Same goes with US storage, I might add. |
You quoted a decline in imports. I demonstrated that a decline in imports has been more than accounted for by a decrease in stocks year over year.
No one claimed they could not buy it, only that it (more than) accounts for your noted drop in imports, negating your argument about elasticity of demand. period.
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cube
Fusion
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Joined: Mar 12, 2005
Posts: 3564
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| Posted: Sun Jul 06, 2008 6:43 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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| Hogan wrote: | S. Korea to cut oil tax if oil hits $170
| Quote: | | The plans follow a 10.5 trillion won ($10.01 billion) package introduced last month to ease the financial burden of high oil prices on low-income individuals and self-owned businesses. |
| Quote: | | The government said last month it would come up with extra contingency plans, including a cut in oil taxes, if Dubai oil tops $170 a barrel. |
link
Subsidizing. Have to keep that economic ball rolling. |
This is why I always have a good laugh whenever anyone proposes a "government solution". 
//
I fully expect government (to do what gov. always does best) tax the productive part of the economy and subsidize the failing part. |
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misterno
Heavy Crude
Joined: Mar 07, 2007
Posts: 301
Location: Houston, TX
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| Posted: Sun Jul 06, 2008 9:09 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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| OilFinder2 wrote: | | OilFinder2 wrote: | | South Korean oil demand has been flat for several years. |
As I said.
South Korean oil demand through 2006.
source |
South Korea has been growing with positive % for many years. So how come their demand is flat for so many years?
Anyone care to comment? |
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wisconsin_cur
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Posts: 2924
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| Posted: Sun Jul 06, 2008 9:16 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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Efficiency can carry you for quite a while. Here in the ol' US of A, efficiency is the biggest oil gusher to be found.
You do reach a point where the returns start to diminish.
Unfortunately for the S. Koreans they spent that margin when oil was "cheap" and now they are facing high prices when all of the low fruit has already been picked.
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"Against stupidity the gods themselves contend in vain."
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"Politics is not the art of the possible. It consists in choosing between the disastrous and the unpalatable."
John Kenneth Galbraith |
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DantesPeak
Expert
Joined: Oct 23, 2004
Posts: 5891
Location: New Jersey
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| Posted: Sun Jul 06, 2008 9:30 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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| misterno wrote: | | OilFinder2 wrote: | | OilFinder2 wrote: | | South Korean oil demand has been flat for several years. |
As I said.
South Korean oil demand through 2006.
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South Korea has been growing with positive % for many years. So how come their demand is flat for so many years?
Anyone care to comment? |
Part of the answer is that they import more oil than they need, then refine and export the surplus as gasoline - including to the US up until recently.
| Quote: | Reuters - Thursday, June 26
South Korean top refiner SK Energy's ability to export at least 120,000 tonnes of gasoline each month from its new 60,000-bpd residual fluid catalytic cracker from July has also helped boost supplies. |
Yahoo
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OilFinder2
Light Sweet Crude
Joined: Mar 26, 2008
Posts: 1143
Location: Seattle
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| Posted: Sun Jul 06, 2008 9:33 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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^
Thanks. I was wondering if that might be the case, but wasn't sure.
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wisconsin_cur
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Joined: May 10, 2007
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| Posted: Mon Jul 07, 2008 8:34 am Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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I was thinking about this graph as I went to sleep (yes, I accept that I have a problem).
It has leveled after a ~4 fold increase in about ten years what would that me something like 30% annual growth?). Would that be an instance of a newly rich nation utylizing that wealth until they reached a point of saturation (ie those who are going to buy cars and the like have already bought them)?
For a break down of increase in type of fuel used over the period in question
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"Against stupidity the gods themselves contend in vain."
-Friedrich von Schiller
"Politics is not the art of the possible. It consists in choosing between the disastrous and the unpalatable."
John Kenneth Galbraith |
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OilFinder2
Light Sweet Crude
Joined: Mar 26, 2008
Posts: 1143
Location: Seattle
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| Posted: Mon Jul 07, 2008 7:30 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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^
You also have to remember that South Korea is a VERY crowded nation. Your point about saturation is no doubt correct, but also it's probably a case of . . . well, there's not much more room on the freeways anymore, and in the meantime they've built super-duper subways, trains, etc. to help people get around.
Could also be that industry is using more coal and/or natural gas (or even nuclear for all I know) and less oil.
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wisconsin_cur
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| Posted: Mon Jul 07, 2008 7:33 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170 |
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Nuclear is very big there for electric generation but it doesn't look like they every used "much" oil for electric generation.
_________________
"Against stupidity the gods themselves contend in vain."
-Friedrich von Schiller
"Politics is not the art of the possible. It consists in choosing between the disastrous and the unpalatable."
John Kenneth Galbraith |
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