Chapter 3  Establishment of Basic Conditions for Stable Energy Supply


3. 1 Establishment of Stable System of Transporting Energy Resources to Japan


   Japan highly depends on overseas energy sources. Accordingly, it is an important policy goal to secure stable transportation system of energy resources, such as crude oil, to Japan. Over 300 million tons a year of energy resources are being supplied to Japan in ship bottoms. About 78% of them are being carried by the Japanese merchant fleet including chartered foreign vessels. Japanese-flag ships carried about 47% of this in 1978. Stable transportation of energy resources presupposes the maintenance of the share of the Japanese merchant fleet at the current level. To provide against a possible global tightening of the tonnage supply-demand situation due to some sea lane troubles, however. Japan should maintain a fleet mainly consisting of Japanese-flag ships manned by Japanese seamen.
   In the past, the Japanese shipping industry was constructing and expanding a ocean-going fleet, particularly of oil tankers and coal carriers, under the annual Government-Sponsored Shipbuilding Program. In recent years, rises in the ship cost have robbed Japanese-flag ships of their international competitive edge. If this situation continues, Japanese tonnage will decrease and the share of the Japanese fleet will decline. To prevent that, the government in fiscal 1979 expanded and reinforced the Government-Sponsored Shipbuilding Program and took such steps as reviving interest differential subsidization in order to beef up the Japanese oceangoing merchant fleet.
   To defend the tanker sea lanes across the Indian Ocean from the Persian Gulf and through the Straits of Malacca, which is the oil transportation route to Japan, international cooperation concerning nautical marks and waterways should be promoted. Moreover, economic aid should be extended to resources-exporting countries to help them construct and improve port facilities and railways.
   Natural gas is considered the most promising non-oil energy source from a short- and mid-range viewpoint. The importance of LNG transportation will increase hereafter. Japan imported about 11 million tons of LNG in 1978. All the 19 LNG carriers used for LNG transportation to Japan are foreign ships and are operated by foreign ship lines. Japan, virtually the No. I maritime country in the world. deplorably lags behind other countries in LNG transportation. LNG demand in this nation will grow further. For a stable supply of this item, Japanese ships should perform the main role in LNG transportation.


3. 2 To Ensure Safety of Domestic Energy Transport



   Some energy resources, such as oil, are dangers themselves. Accordingly, their transportation, unlike the transportation of other cargo items, requires some particular safety measures.
The amount of oil product transport In Japan In fiscal 1978 was 331 million tons and 64,645 million ton-kilometers, representing 6.1% and 15.8%, respectively, of the total freight transport in this country. With the upward trend in oil consumption. The amount has been increasing. Of the above, coastal shipping accounted for 43% of tonnage and 90% of ton-kilometers. The high percentages are due to the fact that Japan is a long island country, depends on overseas sources for almost all its oil requirements and has its oil refineries, factories and electric power stations mostly in waterfront areas. For middle-distance transportation, railways are depended on, accounting for 6% in tonnage and 5% in ton-kilometers, and trucks are used in terminal, short-distance transport, representing 51% in tonnage and 6% in ton-kilometers. The proportion of pipelines is very low compared with the situation in Western countries.
   A pipeline is a superior means of oil transport. It can carry a large amount of oil continuously and stably. Its introduction and development should be studied. At present, construction of a pipeline for the supply of aircraft fuel to the New Tokyo International Airport in Narita is considered an urgent task.


3. 3 Construction of Energy Ports and Expansion of Energy Stockpiling


    (1) Construction of Energy Ports
   Since the second half of the 1950s, demand for imported energy sources, such as crude oil and coal, has been growing in Japan. Construction of large ports necessary for the unloading of such energy sources has been carried out under the oil port system and the steel port system by investing treasury funds.
   Imports of such non-oil energy sources as energy coal and LNG are expected to increase hereafter. Moreover, the need of stepping up the energy stockpile is growing stronger. To cope with these requirements, steps should be taken in respective areas.
   Plans to construct energy ports are liable to be affected by environmental problems in waterfront areas. Moreover, sea lanes along waterfront areas are becoming highly congested with marine traffic. Accordingly, the Government has decided to construct energy ports out in the sea from a middle- and long-range viewpoint. With such an objective, research and development efforts are being made in the field of port civil engineering and for the construction of floating structures.
   (2) Study of Offshore Oil Stockpiling
   As of October 31,1979, Japan held a stockpile of oil enough to meet 101 days' demand. The stock should be increased further for an assured supply of oil in this country. In Japan, with small habitable land and a large population, tanks for oil storage should be constructed not only in water-front areas. An offshore oil stockpile system with different tanks from those used on land should be developed. Studies to develop such a system are already being made.
   (3) Oil Stockpile in Tankers
   Establishment of oil stockpile in permanent tanks under a national management requires a large space and large facilities for safety reasons, and construction of storage facilities is a time-consuming task. Therefore, as a stopgap measure, utilization of oil tankers, which are now in excessive supply, for the stockpiling was planned. A total of 20 tankers aggregating 2,400,000 gross tons began to be used for such a purpose in the autumn of 1978. They consisted of 10 tankers aggregating 1,220,000 gross tons under the anchoring system in Tachibana Bay, Nagasaki Prefecture, and the same number of tankers aggregating 1,180,000 gross tons under the drifting system in waters west of the Ogasawara Islands


3 .4 Development of Energy Resources in Ocean


   To Japan, a country girdled by the sea, the ocean, which teems with boundless possibilities of development, is worthy of development as a national project. The Ministry of Transport is already conducting basic research and technical development endeavors for the tapping of ocean resources. In the future, studies should be made to develop technology to construct large ocean structures and to moor such structures, technology to ensure the safety of operations in stormy weather and technology to bring the collected energy to land - all for the development of undersea resources, specifically oil and natural gas.


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