Was Yoon’s briefing on potential oil and gas reserves in East Sea appropriate?

South Korean President Yoon Suk Yeol, in his first briefing on a current state affair, shared promising news. A physical exploration has revealed a high possibility of a significant oil and gas reserve in the coastal waters of Yeongil Bay in Pohang, North Gyeongsang Province. President Yoon has approved the exploration and drilling plan of the Ministry of Trade, Industry, and Energy. This reserve, estimated to be a minimum of 3.5 billion barrels to a maximum of 14 billion barrels, could potentially transform resource-poor South Korea into an oil-producing country, a prospect that holds great promise.

The maximum estimated reserve of oil and gas in the deep East Sea is 311 times that of the East Sea gas field that was found in 1998 and produced about 45 million barrels of gas from 2004 through 2021. South Korea can use the potential amount of natural gas for up to 29 years, and the oil amount can be used for up to four years, depending on the country’s current use. It is also larger than a Guyana block in South America with 11 billion barrels, which is considered the biggest oil development project of the century. The government predicts construction to begin around 2027 or 2028 and commercial development in 2035.

While the potential of the oil and gas reserves is exciting, tempering our expectations is important. The actual reserve and commercial feasibility can only be determined once exploration and drilling commence. The success rate of drilling is estimated to be 20 percent, which is relatively high for an oil and gas development project, but there is still a significant possibility of failure. Even if oil is present, its profitability is a separate consideration. It's crucial that we remain level-headed and patient, awaiting the results of the exploration.

While it is news that can garner everyone's interest, it is questionable whether the president should have delivered it in the form of a state affairs briefing. Such a briefing was done for the first time on Monday to improve communication with people since the ruling party’s devastating defeat in the general elections. A briefing directly delivered by the president should have been about a complicated issue involving multiple ministries, with the president explaining it from a comprehensive perspective and asking for public understanding. However, the presidential office announced the briefing eight minutes before it began without any information on its topic, and the president left the site without receiving any questions four minutes into his surprise announcement.

Every word of a president as the top leader of state affairs carries heavy weight. While the president asked the public to remain calm and wait for results, the government already made a big fuss by announcing that it is the biggest deep-sea block development project of the century and that its reserve value is five times Samsung Electronics’ market capitalization. In case of any unexpected results, the president will have to deal with the aftermath.