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Japan's Vulnerable Energy Supply Situation

Resource-poor Japan is dependent on imports for 96% of its primary energy supply; even if nuclear energy is included in domestic energy, dependency is still at 81%. Thus, Japan’s energy supply structure is extremely vulnerable. Following the two oil crises in the 1970s, Japan has diversified its energy sources through increased use of nuclear energy, natural gas and coal, as well as the promotion of energy efficiency and conservation.

Despite these improvements, oil still accounts for about 50% of Japan’s primary energy supply, and nearly 90% of imported oil comes from the politically unstable Middle East. Moreover, prospects for importing electricity from neighboring countries are very poor because Japan is an island nation.

Finally, there are growing concerns about environmental problems due to energy use and the need to reduce carbon dioxide emissions to cope with global warming. Therefore, Japan’s energy situation forces the country to focus on the two prime concerns of energy security and environmental preservation.

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