[Initial Perspective] Daewang Whale Project, a Choice for the People?

The exploration project searching for an oil and gas field estimated to contain up to 14 billion barrels in the deep sea 2 km below the waters off Pohang in the East Sea is named 'Daewanggorae' (Great Whale).

Since President Yoon Seok-yeol and the government officially announced the Daewanggorae project, it has sparked nationwide interest, controversy, and political disputes. The impact of the president's hasty announcement, highlighting the maximum estimated resource volume even before drilling exploration, has been greater than expected.

In the political arena, heated debates are ongoing over why the president, rather than the officials, made the sudden announcement, on what basis the possibility of oil deposits was assessed, whether the evaluating party can be trusted, and whether companies were selected based on proper criteria. The stock market has used the Daewanggorae project as kindling, rapidly heating up with thick, murky smoke. Energy-related stocks surged solely on the potential for oil and gas development. Stocks related to oil, gas, exploration, drilling, and transportation?so-called 'East Sea oil field theme stocks'?have been subject to ultra-short-term trading, repeatedly hitting upper price limits before crashing, riding a rollercoaster. Some have even been pre-designated as investment warning stocks.

While speculative and theme stocks dominate the market, public skepticism toward the Daewanggorae project is growing. In particular, the expertise of the advisory firm Actgeo is under scrutiny. Actgeo is effectively a one-person company headquartered in a residential home, with issues of tax delinquency and corporate qualification raised. Furthermore, the fact that Woodside, a world-renowned Australian energy development company that previously explored the Yeongilman area, concluded there was no commercial viability and withdrew, adds to public distrust. It is also questionable why the government entrusted the analysis of an oil exploration project requiring hundreds of billions of won in funding to Actgeo, a boutique firm akin to a one-person company, over large firms. Harsh criticism has even emerged, describing the analysis as a clumsy 'Introduction to Geology' level by a private expert with no experience in national policy.

No citizen would oppose the idea of oil being found in our coastal waters. However, the path to discovering the Daewanggorae, a massive national energy project, must be one that the public can accept. There is no single correct answer in the government's energy policy. Policies involve various options, each with costs. The reason the public grants the government the authority to choose is to minimize failure with limited resources and to make the best decisions for the public good. The government must not only assess the project's economic feasibility but also make sincere efforts for the public by considering various policy options to achieve carbon neutrality and address climate change.

Going forward, Actgeo’s exploration data analysis reports and the selection process of Actgeo should be additionally disclosed to the public. If the government’s decision and announcement to proceed with drilling are made based on reasonable judgment in the public’s view, the public can accept even if no oil or gas is ultimately found. If a rational choice was made under the given conditions, that attempt deserves support. However, if it is concluded that the Daewanggorae project was created through selfish decisions such as academic or personal interests, or political showmanship to reverse declining approval ratings, it will be difficult to avoid the public’s massive anger regardless of the project’s success.

This content was produced with the assistance of AI translation services.