Wednesday, 16 March 2011

After Japan Tragedy, Saudi Arabia’s Role as Reliable Producer Highlighted


The unfolding crisis in Japan highlights, among so many things, the importance of reliable suppliers of energy. While the extent of the damage that failed nuclear plants will do to the already devastated nation, what is for sure is that those reactors that are experiencing meltdowns are done.
Japan consumes 4.4 million barrels of oil a day, according to this article in Bloomberg, yet that figure is very likely to increase as 11% of its energy consumption previously came from nuclear power. As the amount consumed from nuclear power declines, Japan will make up for that energy with fossil fuels.
That could mean up an increase of up to 300,000 barrels a day, according to Michael Lynch, as quoted in the same Bloomberg article.

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