Japan’s reliance on Middle East energy is very high. In 2022, Japan imported 95.2% of its crude oil from the Middle East, with Saudi Arabia and the United Arab Emirates being the two largest suppliers. Japan also imports a significant amount of natural gas from the Middle East, with Qatar being the largest supplier.
Japan’s reliance on Middle East energy is a concern for a number of reasons. First, the Middle East is a volatile region and disruptions to supply can have a significant impact on the Japanese economy. Second, Japan is heavily dependent on oil for energy generation, and this makes it vulnerable to rising oil prices.
The Japanese government is taking steps to reduce its reliance on Middle East energy. The government is investing in renewable energy sources and is also working to diversify its oil and gas suppliers. However, it is likely that Japan will remain heavily reliant on Middle East energy for many years to come.
Here are some of the reasons why Japan is so reliant on Middle East energy:
Geography: Japan is located close to the Middle East, which makes it relatively inexpensive to transport oil and gas to Japan.
Quality: Middle Eastern oil is generally of high quality, which makes it ideal for refining and use in power plants.
Reliability: Japan has long-standing relationships with Middle Eastern oil and gas producers, which has helped to ensure a reliable supply of energy.
However, Japan’s reliance on Middle East energy also has some drawbacks:
Vulnerability to supply disruptions: The Middle East is a volatile region and disruptions to supply can have a significant impact on the Japanese economy. For example, in 1973, the Arab-Israeli War led to an oil embargo that caused a severe energy crisis in Japan.
Price volatility: Oil prices are volatile and can rise sharply in response to geopolitical events or economic factors. This can make it difficult for Japan to manage its energy costs.
Environmental impact: The burning of fossil fuels contributes to climate change. Japan’s reliance on Middle East energy is therefore contributing to a global problem.
The Japanese government is aware of the drawbacks of its reliance on Middle East energy and is taking steps to reduce it. The government is investing in renewable energy sources, such as solar and wind power. It is also working to diversify its oil and gas suppliers. However, it is likely that Japan will remain heavily reliant on Middle East energy for many years to come.