Japan’s Energy Challenge - The impact of Shale Imports from the US & Energy Cooperation with Russia
Published by A. Gagaridis in Update · 8 December 2017
Tags: Japan, Energy, Security, Shale, Gas, Oil, US, Russia, Arctic, Siberia, Middle, East, China, SLOC
Tags: Japan, Energy, Security, Shale, Gas, Oil, US, Russia, Arctic, Siberia, Middle, East, China, SLOC
Welcome back on Strategikos!I had previously announced on Facebook that I would soon upload a report on Japan & energy, and (despite some delay) here it is!
Energy security is a major concern for Japan, which is facing notable challenges in this regard: since it relies heavily on hydrocarbon imports from the Middle East, it is vulnerable to instability in the area as well as to a disruption of the maritime routes crossing the Indian and Pacific Oceans. But the international energy context is evolving, and this offers great opportunities for Japan. The "shale revolution" in the US is having a major geo-economic impact, making of America a producer and exporter of hydrocarbons. In Russia, the government is working to develop Siberia, notably to extract its rich energy and mineral resources. At the same time, the Arctic ice is melting due to global warning, thus allowing an easier access to its hydrocarbon deposits and to navigate along the Northern Sea Route (NSR).
These are all well-known facts, but their combination can have game-changing effects for Japan. This is what I explore In this paper, where I analyze the opportunities and challenges affecting Japan in relation to shale and to cooperation with Russia; so to assess the potential impact of these developments. As a matter of fact, the country is poised to take considerable advantages from both, notably by importing US shale gas & oil and by establishing closer energy ties with Russia so to access the energy resources in Siberia and the Arctic.
Both options may allow Tokyo to reduce its dependency on the Middle East and consequently improve its energy security. Still, there are also significant obstacles that limit Japan's ability to benefit from them: the economic convenience of importing shale-derived fuel from the US is uncertain, and cooperation with Russia is hampered by unresolved territorial disputes and geopolitical considerations. While it is difficult to evaluate their effect by now, it appears clear that the Japanese authorities are exploring both possibilities; a clear sign of Tokyo's interests in taking advantage from such trends.
If you want to learn more about this major geo-economic issue, click here to read the report.
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