Japan is a prominent industrial nation with an advanced economy. However, its economic strength operates within the constraint of limited natural resources. Unlike many developed countries, Japan possesses very few domestic energy sources, particularly fossil fuels like oil. This situation shapes its energy policy and engagement with the global energy market.
Domestic Oil Resources
Japan has remarkably limited domestic crude oil reserves, estimated at approximately 44 million barrels in 2022. This is negligible. Geological factors contribute to this scarcity, as the Japanese archipelago is not situated over large, oil-rich sedimentary basins. Most of the country’s oil production comes from small, scattered fields, both onshore and offshore.
The largest oil and gas field discovered in Japan is the Aga-oki field, located offshore in the Sea of Japan, which began producing in 1976. Other minor fields exist, such as Iwafune-oki and those in Niigata and Akita prefectures. Despite ongoing exploration efforts, no significant new discoveries have substantially altered Japan’s fundamental reliance on external oil sources. In 2022, Japan’s total domestic oil production, including refinery processing gains, was around 101,000 barrels per day.
Reliance on Imports
Japan’s industrial economy is profoundly dependent on imported oil, making it one of the world’s largest net importers of crude oil. This reliance stems directly from its scarce domestic reserves and the high energy demands of its manufacturing and transportation sectors. In 2022, Japan relied on imports to meet 97% of its total oil demand, importing approximately 2.5 million barrels of crude oil per day.
The primary source for Japan’s crude oil imports is the Middle East, which consistently supplies the vast majority of its needs. In 2022, approximately 93% of Japan’s crude oil imports originated from the Middle East. Key suppliers include Saudi Arabia (41.5%), the United Arab Emirates (39.2%), and Kuwait (8.7%).
This concentrated reliance on a single geographic region presents a strategic challenge. The long shipping routes from the Middle East, primarily through the Strait of Hormuz and the Malacca Strait, are vulnerable to geopolitical instability and piracy. This dependence on a few Middle Eastern nations and specific maritime chokepoints necessitates robust energy security strategies. Securing these supply lines is a top national priority given the volume of oil needed to sustain its economy.
Energy Security Measures
Given its profound reliance on imported oil, Japan has implemented comprehensive measures to enhance its energy security. One primary strategy involves diversifying its energy mix to reduce overall dependence on fossil fuels. This includes increasing the use of cleaner energy sources, such as liquefied natural gas (LNG), with Japan being the top importer of LNG in 2022.
Japan also continues to invest in renewable energy technologies, including solar, wind, and geothermal power. The country has set ambitious targets for renewable energy integration into its grid, aiming to expand its domestic generation capacity. Additionally, there has been a re-evaluation of nuclear power, with efforts to restart some reactors idled following the 2011 Fukushima Daiichi accident.
Maintaining strategic crude oil reserves is another important component of Japan’s energy security framework. The country holds both national oil reserves, managed by the Japan Oil, Gas and Metals National Corporation, and private reserves mandated for oil companies. As of January 2022, Japan held approximately 146 days’ worth of oil in government-owned facilities and an additional 92 days’ worth in commercially owned tanks. These reserves provide a buffer against short-term supply disruptions, contributing to a total of around 470 million barrels, or 236 days of domestic consumption.
Furthermore, Japan actively engages in international diplomacy and cooperates with oil-producing nations and other major energy consumers. These efforts aim to foster stable relationships, ensure the free flow of energy resources, and mitigate risks associated with global energy markets.