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TRUMP EFFECT: South Korea to purchase more American oil and gas

By avagrace // 2025-01-22

• South Korea is increasing its purchases of U.S. oil and gas to diversify energy sources and address potential trade tensions under Trump’s second administration.
• The move aims to reduce South Korea’s $55.7 billion trade surplus with the U.S., which has drawn criticism from Trump’s protectionist policies.
• South Korea seeks to lessen its reliance on Middle Eastern oil by boosting U.S. energy imports, enhancing energy security and gaining political favor.
• In 2024, South Korea significantly increased U.S. crude oil and LNG imports, making the U.S. its second-largest oil supplier and a key LNG provider.
• South Korean energy firms are pursuing long-term contracts with U.S. suppliers, aligning with Trump’s focus on expanding domestic energy production and mutual trade benefits.

South Korea is reportedly considering significantly boosting its purchases of oil and gas from the United States. This decision, driven by both economic and geopolitical considerations, comes as the nation seeks to diversify its energy sources and mitigate potential trade tensions with the second administration of President Donald Trump. South Korea, a global economic powerhouse heavily reliant on exports, has long maintained a substantial trade surplus with the United States. In 2024, this surplus reached a staggering $55.7 billion, marking a 25.4 percent increase from the previous year. While this figure reflects the strength of South Korea’s export-driven economy, it also places the nation in the crosshairs of Trump’s protectionist trade policies. Trump, who has consistently criticized trade imbalances, has vowed to impose universal tariffs to reduce America's trade deficit with other nations. (Related: CNN poll reveals majority of Americans optimistic about Trump’s second term.) To preemptively address these concerns, South Korea is exploring ways to reduce its trade surplus with the U.S. by increasing imports of American energy products. This approach not only aligns with Trump’s emphasis on boosting U.S. energy exports but also serves South Korea’s broader goal of enhancing its energy security.

South Korea currently heavily dependent on Middle Eastern oil

Currently, the nation is heavily dependent on Middle Eastern oil, which accounts for 72 percent of its crude oil imports. By diversifying its energy portfolio to include more American oil and gas, South Korea aims to reduce its vulnerability to regional instability and supply disruptions while at the same time gaining favor from Trump's administration. The numbers tell a compelling story. In 2024, South Korea imported 21.51 million tons of U.S. crude oil, making the U.S. its second-largest supplier after Saudi Arabia. This represents a dramatic shift from 2016, when U.S. crude accounted for a mere 0.2 percent of South Korea's imports. Similarly, the U.S. has become a key supplier of liquefied natural gas (LNG), with South Korea importing 5.7 million metric tons of American LNG in 2024. These figures underscore the growing importance of U.S. energy in South Korea's energy strategy. The Trump administration's focus on expanding domestic energy production further bolsters this trend. Trump has pledged to prioritize "cheap energy" by increasing shale gas production and streamlining the approval process for LNG export permits. His nominee for Secretary of Energy, Chris Wright, has echoed this sentiment, emphasizing the need to expand the supply of affordable and reliable U.S. energy. For South Korea, this presents an opportunity to secure stable energy supplies at competitive prices while addressing trade imbalances. At the same time, South Korea's energy corporations are actively exploring ways to deepen their ties with U.S. suppliers. The Korea Gas Corporation, for instance, is reportedly considering additional long-term contracts for American LNG, while the Korea National Oil Corporation is evaluating plans to adjust its strategic reserves to accommodate more U.S. light crude oil. These efforts reflect a broader recognition of the mutual benefits of energy trade between the two nations. Visit EnergySupply.news for more about energy policies around the world. Watch this clip of the ongoing political tensions in South Korea. This video is from Cynthia's Pursuit Of Truth channel on Brighteon.com.

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