IEEJ: March 2011

Special Bulletin
A Japanese Perspective on the International Energy Landscape (35)March 17, 2011

Japan needs National Cooperation and Unity to overcome the current emergency
situation after Great Eastern Japan Earthquake
Ken Koyama, PhD
Director
Strategy and Industry Research Unit

The Institute of Energy Economics, JapanAt around 2:46 p.m. on March 11, an immense earthquake with a magnitude of9.0 occurred in waters off northeastern Japan, unleashing very high tsunami waves
that hit the Pacific coast of northeastern and eastern Japan. The human, economic andpsychological losses from the giant earthquake and tsunami are unprecedented.
First, I would like to express my sorrow and offer my heartfelt condolences forthe great number of people killed by the earthquake and tsunami. I also would like toexpress my sympathy to the vast number of disaster survivors and wish for quick
stabilization of the situation and swift progress in restoration and reconstruction.
The damage from the great earthquake disaster is exerting huge impacts on all
aspects of Japan including the economy and society. Particularly, an unimaginable levelof damage has occurred in the energy sectors. Although it is still difficult to comprehend
the whole picture of damage in the absence of information on details of disaster-afflictedregions, we see unprecedented serious energy supply problems in Japan, including theFukushima Daiichi Nuclear Power Station accidents as the most critical problem, powersource losses from the suspension of many nuclear and thermal power plants, therelated planned power outages, oil refinery damage and petroleum product supply
interruptions, and a gas supply stoppage.
The serious problems can be seen from various viewpoints. These problems will
be considered from various angles and specific measures will be taken to address them.
The immediate top priority is support and restoration for earthquake survivors plagued
with great difficulties. In consideration of the present emergency situation, I focus hereon the following four priorities that the whole of Japan should tackle in the immediatefuture.
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IEEJ: March 2011

The first is thorough electricity and energy conservation. All citizens must makecontributions to supporting surviving victims of the unprecedented disaster while
sharing pains. In this sense, electricity and energy conservation is the most importantmeans. Regarding energy consumption, all citizens can and should cooperate inrefraining from stocking or buying up such fuels as gasoline and kerosene. Eachcitizen’s calm behaviors and actions based on full considerations to the surviving
victims and devastated areas, as well as priority supply to these areas, will play asignificant role in stabilizing Japan’s energy market.
The second priority is early restoration of the energy supply capacity andinfrastructure. Most important in this respect is the stabilization of the situation for thenuclear power station which was struck by a series of accidents. In addition, maximum
efforts must be made to restore supply capacity, ensure alternative capacity and securesmooth distribution in all energy industries including electricity, oil and gas. Eachindustry has already been striving to make such efforts. We must take note that theseindustries have already been making such efforts and contributing to securing supply
capacity, although such effects differ widely from industry to industry.
For example, partial restoration of oil refinery capacity, additional supply
through the relaxation of oil stockpiling obligations to private oil companies, thepotential expansion of petroleum products imports, and enhanced efforts to improve
distribution are now expected to gradually normalize petroleum products supply, as
detailed in the “Impact of the Great Eastern Japan Earthquake on Oil Supply andDemand” (posted on the IEEJ website on March 17), although a decline in oil refinery
capacity and distribution network interruptions have been serious problems since theearthquake. In addition, the resumption of idled thermal power plants, utilization ofprivate power generation systems, and electric power interchange will be implemented.
Importantly, serious efforts to stabilize gas supply are being made, including gas service
restoration efforts in disaster-afflicted areas and preparations for additional LNG
procurement. But there are short and long-term measures to secure and restore energy
supply capacity. Even after all of the short-term measures are taken, the overall energy
supply/demand situation may remain tough for the time being. Therefore, electricity
and energy conservation and calm behaviors, cited for the first priority, are important.
The third priority is appropriate and timely distribution and sharing of
information that is important for stabilizing the situation and realizing consumers’ calm
behaviors. In a bid to prevent panicky actions in the market and to stabilize the energy
market, the government, relevant industries and experts should try to collect and2

IEEJ: March 2011

disseminate objective facts regarding Japan’s energy market. These parties may berequired to sufficiently and appropriately cooperate with media organizations insending information appropriately to stabilize citizens’ livelihood.
The final priority is international cooperation/collaboration in tackling problems,
which is as important as the above maximum domestic efforts. The unprecedented
disaster has attracted global attention. The entire world is moving to support Japanand help disaster victims. If the Japanese people gather their power and take fulladvantage of cooperation and support from the international community to achieve
early reconstruction, it may lead to the stabilization of not only Japan but also theinternational society and economy.
The damage from the latest disaster is too huge to estimate easily at present.
Nevertheless, I believe that Japan can overcome the present difficulties and achieve its
reconstruction through full national cooperation and unity.
Contact: report@tky.ieej.or.jp

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