Posted on 07/05/2022 8:51:19 AM PDT by BeauBo
Japan is facing an energy crisis that can severely hurt the world's third-largest economy as it is forced to tackle a combination of a weak local currency, the fallout from the Ukraine war, and a heatwave.
Japan already had a significant energy import bill as it depends on foreign oil and gas for 90 percent of its needs. But as the yen fell to the lowest in 20 years, Japan's bill became even bigger, with the price rise in crude oil, which has been some 40 percent in dollar terms since the start of 2022, reaching a whopping 70 percent in yen terms...
Because of its extreme dependence on imported energy, Japan has had to continue importing Russian oil and gas despite its verbal commitment to sanctions against Moscow...
It could be because of its heavy energy import bill that Japan proposed to the G7 to cap Russian oil export prices at half the current rate.
(Excerpt) Read more at oilprice.com ...
They have (relatively) the least domestic energy natural resources of any major economy.
I don't think that setting price controls on Russian crude oil exports will likely be effective, but it might be to some extent if enough buyers join in to a cartel, and are able to stick to it. Maybe just talking about it will help them negotiate some of the discount that China and India get.
Japan ping.
Not enough space for a blanket of wind/solar ?
That’s funny that Japan thinks it can cap oil prices as a buyer. I think I will cap the price of an F150 pick up at $25,000 for a 2022 model.
That’ll show the Ford motor company!
All the modern Western countries are facing major self inflicted crises.
Remember what happened the last time Japan faced an ‘energy crisis’.
Totally right....self inflicted!!
Time to fire up the nuke power generator plants.
If there only was a power source with little land use and very limited amounts of waste. One that only requires a few tons of refined fuel per year. One with few failure modes and waste disposal researched for decades. The one source with a ton of regulators with very little to do.
Barge or platform based nuclear power is obvious for Japan.
Thanks biden
If Japan was still a semi-feudal Shogun-style country I would worry.
Time to fire up the nuke power generator plants.
In Japan it’s safer to go with Coal
I believe China and India get their discounts because Russia classifies them as "friendly"... they don't participate in sanctions against Russia.
Yep, no technical reason not to. Also they could start up any coal fired plants they have mothballed. Importing coal from the U.S would likely be cheaper than importing oil and gas from the Rooskies. Yeah, dirty as hell, but for a temporary emergency, it beats killing your economy or freezing to death in the dark.
If Japan was still a semi-feudal Shogun-style country I would worry.
I don’t think that setting price controls on Russian crude oil exports will likely be effective, but it might be to some extent if enough buyers join in to a cartel, and are able to stick to it. Maybe just talking about it will help them negotiate some of the discount that China and India get.
Biden is too politically weak and drug addled to lead on this. Everyone is basically doing what they want while he leads from behind.
It surprises me that Japan doesn’t have a more robust nuclear program than it does.
Doesn’t Japan shovel money at Crisis all the time ?
They can get their power from the Fukushima nuclear reactors... oh, wait.
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