Looming Energy Crisis

We vividly remember the devastating effects a drastic oil price hike brought on Korean economy with two “oil shocks” in the 1970s. But, they were mainly caused by production cuts of the oil producing nations. The present situation is quite different. The present price rise is coming from rising demand for oil, especially from China, India, Russia and Brazil. Oil production is said to be at maximum output.

The basic conception of the current oil crisis is quite different from that of the 1970s oil shock. Amid this worsening situation, we would like to ask our government what countermeasure is under consideration. What is worrisome is that concerned ministries don’t seem to feel any sense of crisis. A high-ranking government official even told reporters “the effect the current oil price hike has on our economy is limited.”

Korea Times