Japan to Reduce its Dependence on Oil to 40% or less by 2030

Japan plans to reduce its dependence on petroleum from 47 percent (as of 2003) to 40 percent or less by 2030, according to the New National Energy Strategy released by the Ministry of Economy, Trade and Industry on May 31, 2006. Japan's oil dependence was as high as 76 percent just before the oil crisis of 1973. The new strategy also focuses on international cooperation as an effective way to help establish a stable supply-demand structure.

Meanwhile, the Japanese Cabinet approved the 2005 Annual Report on Energy (also called the Energy White Paper) on June 6, 2006. As global energy demand soars without a corresponding increase in oil exploration, world energy markets are facing structural tightness in the supply-demand balance. Under these circumstances, the report emphasizes promoting further deregulation of oil-related industries with due consideration to securing energy supplies and environmental conservation.

World energy consumption in 2030 is projected to be 60 percent higher than in 2002; China's consumption in particular is expected to double during this period. Overall Japanese energy demand is also in an upward trend. As of 2004, energy demand in the non-industrial sector and transport sector (both freight and passenger transport) were about 3.3 and 2.8 times higher than 30 years ago, respectively. On the other hand, Japan has increased its energy efficiency by 37 percent in the three decades since the 1973 oil crisis, and is now aiming to improve it by an additional 30 percent by 2030.

Japan intends to actively promote energy cooperation with other Asian countries by sharing the energy conservation and oil stockpiling know-how it has accumulated since the oil crises in the 1970's. This will in turn contribute to the establishment of a stable oil supply-demand structure in Asia. Japan will also strengthen its relationships with energy-producing counties.




Posted: 2006/09/10 10:43:11 PM
Japanese version