Japan- Forced To Refurbish Energy Strategy

 New decade seems to be a very challenging one for Japan. China, the emerging super power has displaced Japan from second position in world economy. Constant recession of Japan has helped China to overtake her. Once world’s largest economy, Japan has gone through a very rough time since the beginning of twenty first century.   Fukushima Daiichi disaster has added a new degree in her misery. Apart from the loss of countless innocent population from the joint strike of earthquake and tsunami, Japan is probably going to face the largest economic disaster. This disaster has also made Japan to rethink about their energy policy, as instead of helping them, their current energy policy has added heavily to their misery during crisis. This new energy policy of Japan is certainly going to play a major impact in international oil market. As the decision of closing down nuclear plants, is going to make Japan more and more dependent on crude oil than ever in last four decades. This is certainly going to make an upward shift in the international demand of crude oil at the time when the supply has shown a negative shift due to the turmoil of Arab world.

Being an extreme low reservoir of natural resources, Japan was historically dependent on foreign energy source. Being driven by the idea of controlling the world of energy, Japan has indulged herself into Second World War. But, the disastrous end result has made them to think otherwise. Moreover Japan has observed an economical revolution in post war phase. As a result they have started depending heavily on nuclear energy. With the aid of technological advancement they have reduced their dependency on oil from sixty six percentages to mere ten percentages. They have successfully met thirty percent of their energy requirement through nuclear option.

But, Daiichi disaster has made them to reform their energy policy once again.  Japan is going to bank on renewable energy options like bio fuels, wind, hydro power and solar instead of nuclear energy in long term.  It is expected that by 2050 Japan will be able to meet sixty six percent of energy requirement through these options. But, to deal with recent crisis, Japan has to be more dependent on crude oil and gas as temporary alternatives, as they have decided to close down nuclear plants. This is certainly going to increase the demand of crude oil and gas in international market and create an impact.


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