Saturday, May 20, 2006

Japan planning to increase its present oil reserve

Written by: S.M.Mehdi Hassan
Japan has decided to increase its oil reserve from 90 days to 95 days. Due to increasing oil price and on going political instability in the Middle Eastern countries the government has taken this decision.
Japan has the second largest economy in the world and like other economically developed countries it has lots of industries which run on oil. Last Friday, Japan’s Economy, Trade and Industry Minister Toshihiro Nikai, in a press conference said that the ministry is examining the possibilities to raise the amount of oil reserve in order to boost the country’s resistance. On Thursday, a panel of oil experts and senior business officials submitted a draft on the country’s oil policy.
Japan will need extra 15million barrels worth a total of 100 billion yen for five days. Each barrel would cost $60. In addition, the new draft on Japan’s oil policy submitted also recommends diversifying its reserve. At present, Japan only buys unrefined crude oil and refines it in domestic plants. The draft suggested that government should now think about buying refined products such as, gasoline and Kerosene. Nikai also said that if Japan increases its oil reserve than at least one day’s supply would consist of Kerosene and gasoline.

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