RECONSIDERING JAPAN’S ENERGY STOCKPILING SYSTEM

PREPARING FOR THE BLOCKADE OF MARITIME TRANSPORT ROUTES

Abstract

Following triggers like the 1956 Suez Crisis, European nations strengthened their petroleum stockpiles. In emulation of this, Japan began its preparations in the late 1960s and, by the time of the first oil crisis in 1973, already possessed a petroleum stockpile sufficient for about 60 days by the private sector. At that time, oil's share of Japan's primary energy exceeded 70%, reinforcing oil reserves as a rational choice. Due to this sufficient stockpiling of oil products, no panic arose during subsequent Middle East crises. While the oil ratio has fallen below 40%, the demand for LNG has significantly increased in recent days. However, reserves are only held for petroleum. If the supply of LNG were to be halted, there would only be a few weeks' worth of stock available, and there are no effective alternative measures in place. Considering the recent expansion of threats to maritime transport routes near Japan, introducing a government-stockpiled LNG is urgently necessary.