Petrileum Stockpiling
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Transcript of Petrileum Stockpiling
US$
/bbl
The Need for Petroleum Stockpiling
1
1. To secure stable supplies of petroleum (Common issue in the world)On earth there are various sources of energy in addition to oil, such as coal, nuclear energy, natural gas and
hydraulic energy. Energy serves as a driving force for a country's economy, and is vital for its citizens. Therefore,securing a stable energy supply is one of the most important issues for every county.
Since then, the international political situation has periodically affected the supply of oil, such as during the GulfWar in 1990, the terrorist attacks of September 11, 2001, and the Iraq war in 2003.
4. For a more safe, flexible and efficient release
2. Oil and recent global dynamicsIt is said that the price and supply of oil is very susceptible to
the influence of international politics and economics, in contrastto other international commodities. The first oil shock occurredin the autumn of 1973 due to the embargo by Middle Easternoil-producing countries as a result of a war in the Middle East.
The Need for Petroleum Stockpiling
Primary energy supply sources of Japan (2014 fiscal year)
New energy/Geothermal4.7％
Oil 41.3％
Coal25.3％
Natural gas25.3％
Hydro3.4％
(Data source: Agency for Natural Resources and Energy)
Energy Supply Composition for Major Countries
Japan USA U.K.
U.K.
Germany France SouthKorea
Oil dependencyin 2014 43.1％ 36.4％ 35.9％ 36.9％ 39.5％ 21.7％32.4％
China
17.5％
RussianFederation
Japan USA FranceGermany SouthKorea
Oil imports dependencyin 2013 99.7％ 39.1％ 93.5％ 37.9％ 94.7％
Middle East dependencyin 2013 82.45％ 27.07％ 4.23％ 3.66％ 21.08％
99.0％
85.74％
47,820,000kl (product base*2)Crude oil: 48,900,000klProduct: 1,370,000klCrude oil: National petroleum stockpile basesand nationally-leased private tanksProduct: Private tanks
Crude oil: Interior of a sealed tankProduct: Holding in the process of distribution*3
Interior of a private tank loaned to oil-producing nations
Crude oil: Management outsourced by the government to JOGMECProduct: Management outsourced by the government to the private sector
JOGMEC/Private sectorPrivate sector, etc. has an obligation to hold stockpiles
32,880,000kl (product base*2)Crude oil: 16,890,000klProduct: 16,840,000kl
760,000kl (product base*2)Crude oil: 800,000kl
Crude oil: Private tanksProduct: Private tanks
Private leased tanks loaned to oil-producing nations
The oil supply chain, from import of crude oil and other raw materials, to refining and distribution of products
117 days consumption level 80 days consumption level
National stockpiling Private stockpiling
2 days consumption level
Stockpiles held jointly with oil-producing nations
Stock level*1
Inventory
*1: Volume of inventory as of the end of March, 2015 calculated using domestic oil consumption volume based on the Oil Stockpiling Act. *2: One kiloliter of crude oil converted to 0.95 kiloliters of petroleum product (amounts less than 10,000 kiloliters are rounded off).*3: Inventory added to commercial inventory distributed to private sector refineries and depots.
Holding site
Holding format
Management etc
Straits of Hormuz
Strait of Malacca/Singapore
Bashi Channel
Makassar Straits
Selat Lombok
＜Tomakomai-Tobu National Petroleum Stockpiling Base＞ ＜Shibushi National Petroleum Stockpiling Base＞
2
（Courtesy of Mainichi NewspapersCo., Ltd.）
（Courtesy of Mainichi NewspapersCo., Ltd.）
Traffic channel of tankers carrying oil (Oil road to Japan)
3. Petroleum stockpiling
In particular, Japan is the world's fifth largest energy consumer, behind China, the US, Russia, and India (Source: BP Statistical Review of World Energy June 2015). Oil accounts for 41.3% of Japan's energy consumption (as of FY2014), the highest of all, and currently 99.7% of it is imported.
(Data source: BP Statistical Review of World Energy June 2015)
(Data source: IEA Statistics Oil Information 2014)
Change in West Texas Intermediate (WTI) oil prices and International Energy Agency (IEA)
emergency releases of oil between 1983 and 2015.
All-time high in themarket $147.27, July 2008
Aug 1990: During the crisis in the Gulf, the IEA implemented CERMs and devised an emergency plan to release a number of oil stockpiles and control oil demand. Japan released pricate oil reserves(reducing its oil stockpiles from 82 days to 78days.)
Sep 2005: When in damage of Hurricane Katrina which hit USA, the IEA decided coordination response with USA. Japan implemented reduction of the obligation for private oil reserves. (reducing its oil stockpiles from 70 days to 67 days.)
June 2011: Growing tensions in the Mid-East and northern African that began in Tunisia and Egypt spread to civil war in Libya, and because of concerns that this would have a significant impact on the world’s stable supply of oil, the IEA decided to take coordinated action. Japan responded by lowering its private sector obligatory stockpiling requirement by three days.
Growing tensions in the Mid-East and northern Africa.
Recent years have seen the expansion of energy demand in China and India and other emerging nations; damage from Hurricane Katrina in the U.S. in 2005; a chaotic situation in the Mid-East and northern Africa in 2011, including Tunisia, Egypt, and Libya; and the issue of Iran's nuclear program. Japan's energy supply structure is largely dependent on imports, and the stable supply of oil may be greatly affect-ed by the international situation in the future.
Since achieving a target of stockpiling a 90-day supply of import volume annually (about 50 million kl) in 1997, to date government stockpiles have generally maintained this level. As of the end of March 2015, private sector stockpiles were at 80 days (about 33 million kl). Of these, reserves of petroleum products (gasoline, diesel, kerosene and A fuel oil), equivalent to about four days’ demand, are distributed to regional stockpiles nationwide, ensuring swift supply. Since 2009, a joint stockpiling program has also been in place with oil-producing nations such as the UAE and Saudi Arabia, and as of the end of March 2015, a two-day supply (about 800,000 kl) was stocked. To minimize disruption to peoples’ lives during emergencies, a tight risk communication system has been put in place between the nation’s government, JOGMEC and the private sector, and efforts are being promoted to ensure stockpiling operations that are both efficient and flexible.
The purpose of stockpiling petroleum is to secure a stable supply and prevent significant social, economic and political problems in the event of oil supply shortages. Many countries around the world are engaged in combating this issue. As a result, from the fiscal year ended 1972 petroleum stockpiling was started in Japan by the private sector. From the fiscal year ended 1978, the government commenced petroleum stockpiling.
＜Current stage of national and private stockpiling＞
Netherlands Italy
91.7％
19.36％
87.8％
20.84％
US$
/bbl
The Need for Petroleum Stockpiling
1
1. To secure stable supplies of petroleum (Common issue in the world)On earth there are various sources of energy in addition to oil, such as coal, nuclear energy, natural gas and
hydraulic energy. Energy serves as a driving force for a country's economy, and is vital for its citizens. Therefore,securing a stable energy supply is one of the most important issues for every county.
Since then, the international political situation has periodically affected the supply of oil, such as during the GulfWar in 1990, the terrorist attacks of September 11, 2001, and the Iraq war in 2003.
4. For a more safe, flexible and efficient release
2. Oil and recent global dynamicsIt is said that the price and supply of oil is very susceptible to
the influence of international politics and economics, in contrastto other international commodities. The first oil shock occurredin the autumn of 1973 due to the embargo by Middle Easternoil-producing countries as a result of a war in the Middle East.
The Need for Petroleum Stockpiling
Primary energy supply sources of Japan (2014 fiscal year)
New energy/Geothermal4.7％
Oil 41.3％
Coal25.3％
Natural gas25.3％
Hydro3.4％
(Data source: Agency for Natural Resources and Energy)
Energy Supply Composition for Major Countries
Japan USA U.K.
U.K.
Germany France SouthKorea
Oil dependencyin 2014 43.1％ 36.4％ 35.9％ 36.9％ 39.5％ 21.7％32.4％
China
17.5％
RussianFederation
Japan USA FranceGermany SouthKorea
Oil imports dependencyin 2013 99.7％ 39.1％ 93.5％ 37.9％ 94.7％
Middle East dependencyin 2013 82.45％ 27.07％ 4.23％ 3.66％ 21.08％
99.0％
85.74％
47,820,000kl (product base*2)Crude oil: 48,900,000klProduct: 1,370,000klCrude oil: National petroleum stockpile basesand nationally-leased private tanksProduct: Private tanks
Crude oil: Interior of a sealed tankProduct: Holding in the process of distribution*3
Interior of a private tank loaned to oil-producing nations
Crude oil: Management outsourced by the government to JOGMECProduct: Management outsourced by the government to the private sector
JOGMEC/Private sectorPrivate sector, etc. has an obligation to hold stockpiles
32,880,000kl (product base*2)Crude oil: 16,890,000klProduct: 16,840,000kl
760,000kl (product base*2)Crude oil: 800,000kl
Crude oil: Private tanksProduct: Private tanks
Private leased tanks loaned to oil-producing nations
The oil supply chain, from import of crude oil and other raw materials, to refining and distribution of products
117 days consumption level 80 days consumption level
National stockpiling Private stockpiling
2 days consumption level
Stockpiles held jointly with oil-producing nations
Stock level*1
Inventory
*1: Volume of inventory as of the end of March, 2015 calculated using domestic oil consumption volume based on the Oil Stockpiling Act. *2: One kiloliter of crude oil converted to 0.95 kiloliters of petroleum product (amounts less than 10,000 kiloliters are rounded off).*3: Inventory added to commercial inventory distributed to private sector refineries and depots.
Holding site
Holding format
Management etc
Straits of Hormuz
Strait of Malacca/Singapore
Bashi Channel
Makassar Straits
Selat Lombok
＜Tomakomai-Tobu National Petroleum Stockpiling Base＞ ＜Shibushi National Petroleum Stockpiling Base＞
2
（Courtesy of Mainichi NewspapersCo., Ltd.）
（Courtesy of Mainichi NewspapersCo., Ltd.）
Traffic channel of tankers carrying oil (Oil road to Japan)
3. Petroleum stockpiling
In particular, Japan is the world's fifth largest energy consumer, behind China, the US, Russia, and India (Source: BP Statistical Review of World Energy June 2015). Oil accounts for 41.3% of Japan's energy consumption (as of FY2014), the highest of all, and currently 99.7% of it is imported.
(Data source: BP Statistical Review of World Energy June 2015)
(Data source: IEA Statistics Oil Information 2014)
Change in West Texas Intermediate (WTI) oil prices and International Energy Agency (IEA)
emergency releases of oil between 1983 and 2015.
All-time high in themarket $147.27, July 2008
Aug 1990: During the crisis in the Gulf, the IEA implemented CERMs and devised an emergency plan to release a number of oil stockpiles and control oil demand. Japan released pricate oil reserves(reducing its oil stockpiles from 82 days to 78days.)
Sep 2005: When in damage of Hurricane Katrina which hit USA, the IEA decided coordination response with USA. Japan implemented reduction of the obligation for private oil reserves. (reducing its oil stockpiles from 70 days to 67 days.)
June 2011: Growing tensions in the Mid-East and northern African that began in Tunisia and Egypt spread to civil war in Libya, and because of concerns that this would have a significant impact on the world’s stable supply of oil, the IEA decided to take coordinated action. Japan responded by lowering its private sector obligatory stockpiling requirement by three days.
Growing tensions in the Mid-East and northern Africa.
Recent years have seen the expansion of energy demand in China and India and other emerging nations; damage from Hurricane Katrina in the U.S. in 2005; a chaotic situation in the Mid-East and northern Africa in 2011, including Tunisia, Egypt, and Libya; and the issue of Iran's nuclear program. Japan's energy supply structure is largely dependent on imports, and the stable supply of oil may be greatly affect-ed by the international situation in the future.
Since achieving a target of stockpiling a 90-day supply of import volume annually (about 50 million kl) in 1997, to date government stockpiles have generally maintained this level. As of the end of March 2015, private sector stockpiles were at 80 days (about 33 million kl). Of these, reserves of petroleum products (gasoline, diesel, kerosene and A fuel oil), equivalent to about four days’ demand, are distributed to regional stockpiles nationwide, ensuring swift supply. Since 2009, a joint stockpiling program has also been in place with oil-producing nations such as the UAE and Saudi Arabia, and as of the end of March 2015, a two-day supply (about 800,000 kl) was stocked. To minimize disruption to peoples’ lives during emergencies, a tight risk communication system has been put in place between the nation’s government, JOGMEC and the private sector, and efforts are being promoted to ensure stockpiling operations that are both efficient and flexible.
The purpose of stockpiling petroleum is to secure a stable supply and prevent significant social, economic and political problems in the event of oil supply shortages. Many countries around the world are engaged in combating this issue. As a result, from the fiscal year ended 1972 petroleum stockpiling was started in Japan by the private sector. From the fiscal year ended 1978, the government commenced petroleum stockpiling.
＜Current stage of national and private stockpiling＞
Netherlands Italy
91.7％
19.36％
87.8％
20.84％
107 112
188
207
3
82 92
13 14
4
Petroleum Stockpiling in Japan
3
Petroleum stockpiling projects are supported by a number of different groups of people. First, the national petrole-um stockpiling bases are operated 24 hours-a-day by workers who have been trained for all types of emergencies.Secondly, the government and JOGMEC are constantly researching how large capacities of oil can be more efficient-ly and economically stored. Thirdly, the cost of storing petroleum cannot be met without the taxes raised fromJapanese citizens, and thus we are all supporting the stockpiling of petroleum.
2. People who support petroleum stockpiling
Petroleum Stockpiling System
National petroleumstockpiling base
(crude oil)
Petroleumstockpiling
National stockpilingin tanks leased fromprivate companies
(crude and petroleum product)
Private stockpiling byprivate oil company
National petroleum stockpiling bases prosperwhen there are strong ties with local communitiesand local public entities. Every effort is thereforemade to maintain such important relationships.
4. Promotion of research and development on stockpiling
Storage amount[10,000 kl]National stockpiling (days)Private stockpiling (days)Stockpiles held jointly with oil-producing nations(days)
Majorevents
First Oil Crisis
Establishment of IEA
Second Oil Crisis
Gulf War Petroleumprices soar
September 11
War in Iraq
GovernmentStockpiling
Privatestockpiling
Planned goal of 30 million kl starting in fiscalyear 1978 (achieved 3/89)
Planned goal of 50 million kl starting in fiscalyear 1988 (achieved 2/98)
Planned goal of 51 million kl starting in fiscalyear 2001 (achieved 2/03)
60-Day stockpile plan starting in fiscalyear 1971 (achieved 3/75)
90-Day stockpile plan starting in fiscalyear 1974 (achieved 3/81)
70-Day-stockpile plan starting in fiscalyear 1989
US Hurricane damage
Transition of petroleum stockpiling, and policy in Japan
Routine patrols in all areas of the base
＜Main target of research＞
No. Research Content
1
2
3
4
5
3. Harmonious existence within the community1. Petroleum stockpiling = A common wealth for the Japanese
Quality of StockpiledCrude Oil
Effective operation onabove and in-ground tank
Effective operationon floating tank
Effective operationon rock cavern tank
Research regardingsafety and disaster
prevention
Private stockpiling
Inventory in tanks loaned to oil-producing nations
(crude oil)
Stockpiles held jointly with oil-producing nations
National stockpiling (Target: 51 million kl)
Family tours: Models are used to describe the base (Tomakomai-Tobu)
Base tour (Kushikino)
Several studies and R&D regarding stockpiling technology and maintenance are conducted with aim of keeping high safety and economical operation on national stockpiling bases. The results of the studies and researches are utilizing to improve the stockpiling operation and management capabilities.
In order to make local communities better under-standing of the importance of stockpiling petroleum, we also invite the public to tour our stockpiling bases.
Soil structure evaluation on base precincts
(evaluation of safety against long-period ground motion)To ensure both safety and economical maintenance on floating tank, several studies have been conducted to evaluate hull strength in long term mooring, life span on coating. Furthermore, a study to make a standard on replacing of large diameter rubber fender's has been conducted.
If crude oil has been storing for long term, there would be deposits of adhesive substance with high viscosity that is mainly made by wax element in crude oil experienced heat shocks. If the deposits, called oil sludge, accumulate in volume, there would be negative effects on operation and maintenance cost, so we were analyzing the sludge forming mechanism. Furthermore we are monitoring stockpiled crude quality by checking such as API gravity, water content ratio so on annually.
Several studies have been conducted to aim the tank safety and stability even receiving large scale earthquake in service. Meanwhile to ensure economical maintenance on aging tanks, studies of risk based inspection and tank bottom's corrosion evaluation system in service were also implementing.
To aim and ensure higher safety and stability for long term usage of rock cavern tank operation, several studies have been conducted.
We are conducting several studies on new over ground prevention plans based on disaster prevention methods using a large fog/jet monitor, maritime disaster prevention plans relating to oil splits as sea, security and alarm plans for invaders and objects, as well as collecting and analyzing the basic data in relation to the area surrounding stockpiling bases.
Petroleum stockpiling in Japan is performed in three ways. First, there is national stockpiling, which is run directly by the Japanese government. Second, there is private stockpiling, which by law must be performed by private oil companies. Third, there are stockpiles held jointly in collaboration with oil-producing nations. Under the national stockpiling scheme, approximately 50 million kl of crude oil and petroleum products are stored in ten national petroleum stockpiling bases and tanks leased from the private sector across Japan. Under the private stockpiling scheme, approximately 37 million kl of crude oil and petroleum products are stored by private oil companies in accordance with their obligations to stockpile oil under the law. Under the joint stockpile program with oil-producing nations, private sector tanks in Japan are loaned to national oil companies of oil-producing nations with government support, and those companies use them as transfer and stockpile bases for Asia. The program is designed to prioritize supplying inventory from those tanks to Japan in the event of concerns about shortages of crude oil supplies for those supporting oil stockpiles for Japan, and about 1.3 million kl of oil is stored. Together, government stockpiling, private sector stockpiling, and stockpiles held jointly with oil-producing nations total approximately 88 million kl, and represent a joint asset of the Japanese people. Converted to stockpiling days, they amount to about 214 days’ worth (as of the end of August 2015), and in the event oil imports are disrupted, will enable us to maintain our everyday lives more or less unchanged from today.
107 112
188
207
3
82 92
13 14
4
Petroleum Stockpiling in Japan
3
Petroleum stockpiling projects are supported by a number of different groups of people. First, the national petrole-um stockpiling bases are operated 24 hours-a-day by workers who have been trained for all types of emergencies.Secondly, the government and JOGMEC are constantly researching how large capacities of oil can be more efficient-ly and economically stored. Thirdly, the cost of storing petroleum cannot be met without the taxes raised fromJapanese citizens, and thus we are all supporting the stockpiling of petroleum.
2. People who support petroleum stockpiling
Petroleum Stockpiling System
National petroleumstockpiling base
(crude oil)
Petroleumstockpiling
National stockpilingin tanks leased fromprivate companies
(crude and petroleum product)
Private stockpiling byprivate oil company
National petroleum stockpiling bases prosperwhen there are strong ties with local communitiesand local public entities. Every effort is thereforemade to maintain such important relationships.
4. Promotion of research and development on stockpiling
Storage amount[10,000 kl]National stockpiling (days)Private stockpiling (days)Stockpiles held jointly with oil-producing nations(days)
Majorevents
First Oil Crisis
Establishment of IEA
Second Oil Crisis
Gulf War Petroleumprices soar
September 11
War in Iraq
GovernmentStockpiling
Privatestockpiling
Planned goal of 30 million kl starting in fiscalyear 1978 (achieved 3/89)
Planned goal of 50 million kl starting in fiscalyear 1988 (achieved 2/98)
Planned goal of 51 million kl starting in fiscalyear 2001 (achieved 2/03)
60-Day stockpile plan starting in fiscalyear 1971 (achieved 3/75)
90-Day stockpile plan starting in fiscalyear 1974 (achieved 3/81)
70-Day-stockpile plan starting in fiscalyear 1989
US Hurricane damage
Transition of petroleum stockpiling, and policy in Japan
Routine patrols in all areas of the base
＜Main target of research＞
No. Research Content
1
2
3
4
5
3. Harmonious existence within the community1. Petroleum stockpiling = A common wealth for the Japanese
Quality of StockpiledCrude Oil
Effective operation onabove and in-ground tank
Effective operationon floating tank
Effective operationon rock cavern tank
Research regardingsafety and disaster
prevention
Private stockpiling
Inventory in tanks loaned to oil-producing nations
(crude oil)
Stockpiles held jointly with oil-producing nations
National stockpiling (Target: 51 million kl)
Family tours: Models are used to describe the base (Tomakomai-Tobu)
Base tour (Kushikino)
Several studies and R&D regarding stockpiling technology and maintenance are conducted with aim of keeping high safety and economical operation on national stockpiling bases. The results of the studies and researches are utilizing to improve the stockpiling operation and management capabilities.
In order to make local communities better under-standing of the importance of stockpiling petroleum, we also invite the public to tour our stockpiling bases.
Soil structure evaluation on base precincts
(evaluation of safety against long-period ground motion)To ensure both safety and economical maintenance on floating tank, several studies have been conducted to evaluate hull strength in long term mooring, life span on coating. Furthermore, a study to make a standard on replacing of large diameter rubber fender's has been conducted.
If crude oil has been storing for long term, there would be deposits of adhesive substance with high viscosity that is mainly made by wax element in crude oil experienced heat shocks. If the deposits, called oil sludge, accumulate in volume, there would be negative effects on operation and maintenance cost, so we were analyzing the sludge forming mechanism. Furthermore we are monitoring stockpiled crude quality by checking such as API gravity, water content ratio so on annually.
Several studies have been conducted to aim the tank safety and stability even receiving large scale earthquake in service. Meanwhile to ensure economical maintenance on aging tanks, studies of risk based inspection and tank bottom's corrosion evaluation system in service were also implementing.
To aim and ensure higher safety and stability for long term usage of rock cavern tank operation, several studies have been conducted.
We are conducting several studies on new over ground prevention plans based on disaster prevention methods using a large fog/jet monitor, maritime disaster prevention plans relating to oil splits as sea, security and alarm plans for invaders and objects, as well as collecting and analyzing the basic data in relation to the area surrounding stockpiling bases.
Petroleum stockpiling in Japan is performed in three ways. First, there is national stockpiling, which is run directly by the Japanese government. Second, there is private stockpiling, which by law must be performed by private oil companies. Third, there are stockpiles held jointly in collaboration with oil-producing nations. Under the national stockpiling scheme, approximately 50 million kl of crude oil and petroleum products are stored in ten national petroleum stockpiling bases and tanks leased from the private sector across Japan. Under the private stockpiling scheme, approximately 37 million kl of crude oil and petroleum products are stored by private oil companies in accordance with their obligations to stockpile oil under the law. Under the joint stockpile program with oil-producing nations, private sector tanks in Japan are loaned to national oil companies of oil-producing nations with government support, and those companies use them as transfer and stockpile bases for Asia. The program is designed to prioritize supplying inventory from those tanks to Japan in the event of concerns about shortages of crude oil supplies for those supporting oil stockpiles for Japan, and about 1.3 million kl of oil is stored. Together, government stockpiling, private sector stockpiling, and stockpiles held jointly with oil-producing nations total approximately 88 million kl, and represent a joint asset of the Japanese people. Converted to stockpiling days, they amount to about 214 days’ worth (as of the end of August 2015), and in the event oil imports are disrupted, will enable us to maintain our everyday lives more or less unchanged from today.
On-ground tankOn-ground tank
Tomakomai-Tobu, Mutsu-Ogawara, Fukui, Shibushi
Characteristics
Bases utilizing this
■Schematic of a tank
Wind dispersion plate
Floating roof water outfall
Roof support
Sealingdevice
Manhole
Annular plate
Floating roof
Bottom lining
Air form chamberMeasurement shack
Gauge ball
Extensionladder
Wind gutterStiffener
Ladder
ScarementRC ring
Drainage system
Underground rock cavern tank
Kuji, Kikuma and Kushikino
Characteristics
Bases utilizing this
Vertical pile plug
(Weathering rock)
(Bedrock)
Cultivation
Water seal tunnel
Crude oil
▼Water bed
▼Oil surface
Rockcaverntank
Upper vertical pile sectionOil in
Oil out
Water drainage
Fire-resistingwall
Servicetunnel
Water-curtain borehole
Limited water level
Inert gas
Rock cavem tank
Crude oil
▼Water bedInflow of ground water
Tank-bottom drainage pumpCrude oil outflow pump
In-ground tank
Akita
Characteristics
Base utilizing this
Side wall concrete
Support pipes forwater pump etc
Ground water lifting pump
Air form chamber
Supporting pipes for oil pumps etcInitial fire extinguisher facility
Double deck floating roof
Floating roof support pillar
Floating roof seal Side wall
Mixing deviceFloating roof drainage unit Bottom plate lining steel platePump
Bottom-drawn pump Bottom plateSide wall lining steel plate
Bottom plate concrete
Water drainage layer under bottom plate
Protective tube for rain discharge pump etc.
Landfill/earthfill layer
Rock anchor
Rock layer
Steel picket
Rain discharge pump
Floating tank
Shirashima and Kamigoto
Characteristics
Bases utilizing this
Operational monitoring Atmospheric/oceanographic monitoring
Safety and disaster prevention/environment monitoring
Primary dike(floating type)
Breakwater/Secondary dike
Inert gas To crude oil gas varning unit
Storage vessel
Inert gas injection
Crude oil
Seawater
Mooring Dolphin
Primary dike(floating type)
Breakwater/Secondary dike
SubmersibleOil fence
Sea berth
Tanker
Guard boat
Submersibleoil boom
＜A sketch of an on-ground tank (Volume 115,000 kl)＞
Circumference 256m
Height24.5m
Diameter 82m
National Petroleum Stockpiling Base
5 6
＜ Akita National Petroleum Stockpiling Base ＞
＜ Shirashima National Petroleum Stockpiling Base ＞
omai-TTomak
Kikuma
＜ Mutsu-Ogawara National Petroleum Stockpiling Base ＞ ・Involves installing the majority of the tank underground.・Lower risk of above-ground oil spills and diffusion, and highly earthquake-resistant.
・Tanks can be spaced closer together for more effective land utilization.
・Tank circumference and depth can be enlarged, providing approximately three times the capacity of on-ground tanks.
・Involves installation on the water for effective ocean space utilization.・Floating double-walled storage vessels are surrounded by primary and secondary dikes to ensure complete protection against oil spills and diffusion.
・Land required limited to that needed for ancillary facilities, with a small total area.
・Involves storing petroleum in caverns drilled in bedrock.
・Lower risk of oil spills and diffusion, less vulnerable to earthquakes, lightening, and other natural disasters.
・Land required limited to that needed for ancillary facilities, with a small total area.
・Method most widely-used at National Petroleum Stockpiling bases
・The most commonly-used type of petroleum storage tank, with a proven track record that ensures safety.
National petroleum stockpiling base adopts storage techniques in accordance with the characteristic of each site. In addition, the bases take thoroughgoing safety measures.
＜ Kushikino National Petroleum Stockpiling Base ＞
On-ground tankOn-ground tank
Tomakomai-Tobu, Mutsu-Ogawara, Fukui, Shibushi
Characteristics
Bases utilizing this
■Schematic of a tank
Wind dispersion plate
Floating roof water outfall
Roof support
Sealingdevice
Manhole
Annular plate
Floating roof
Bottom lining
Air form chamberMeasurement shack
Gauge ball
Extensionladder
Wind gutterStiffener
Ladder
ScarementRC ring
Drainage system
Underground rock cavern tank
Kuji, Kikuma and Kushikino
Characteristics
Bases utilizing this
Vertical pile plug
(Weathering rock)
(Bedrock)
Cultivation
Water seal tunnel
Crude oil
▼Water bed
▼Oil surface
Rockcaverntank
Upper vertical pile sectionOil in
Oil out
Water drainage
Fire-resistingwall
Servicetunnel
Water-curtain borehole
Limited water level
Inert gas
Rock cavem tank
Crude oil
▼Water bedInflow of ground water
Tank-bottom drainage pumpCrude oil outflow pump
In-ground tank
Akita
Characteristics
Base utilizing this
Side wall concrete
Support pipes forwater pump etc
Ground water lifting pump
Air form chamber
Supporting pipes for oil pumps etcInitial fire extinguisher facility
Double deck floating roof
Floating roof support pillar
Floating roof seal Side wall
Mixing deviceFloating roof drainage unit Bottom plate lining steel platePump
Bottom-drawn pump Bottom plateSide wall lining steel plate
Bottom plate concrete
Water drainage layer under bottom plate
Protective tube for rain discharge pump etc.
Landfill/earthfill layer
Rock anchor
Rock layer
Steel picket
Rain discharge pump
Floating tank
Shirashima and Kamigoto
Characteristics
Bases utilizing this
Operational monitoring Atmospheric/oceanographic monitoring
Safety and disaster prevention/environment monitoring
Primary dike(floating type)
Breakwater/Secondary dike
Inert gas To crude oil gas varning unit
Storage vessel
Inert gas injection
Crude oil
Seawater
Mooring Dolphin
Primary dike(floating type)
Breakwater/Secondary dike
SubmersibleOil fence
Sea berth
Tanker
Guard boat
Submersibleoil boom
＜A sketch of an on-ground tank (Volume 115,000 kl)＞
Circumference 256m
Height24.5m
Diameter 82m
National Petroleum Stockpiling Base
5 6
＜ Akita National Petroleum Stockpiling Base ＞
＜ Shirashima National Petroleum Stockpiling Base ＞
omai-TTomak
Kikuma
＜ Mutsu-Ogawara National Petroleum Stockpiling Base ＞ ・Involves installing the majority of the tank underground.・Lower risk of above-ground oil spills and diffusion, and highly earthquake-resistant.
・Tanks can be spaced closer together for more effective land utilization.
・Tank circumference and depth can be enlarged, providing approximately three times the capacity of on-ground tanks.
・Involves installation on the water for effective ocean space utilization.・Floating double-walled storage vessels are surrounded by primary and secondary dikes to ensure complete protection against oil spills and diffusion.
・Land required limited to that needed for ancillary facilities, with a small total area.
・Involves storing petroleum in caverns drilled in bedrock.
・Lower risk of oil spills and diffusion, less vulnerable to earthquakes, lightening, and other natural disasters.
・Land required limited to that needed for ancillary facilities, with a small total area.
・Method most widely-used at National Petroleum Stockpiling bases
・The most commonly-used type of petroleum storage tank, with a proven track record that ensures safety.
National petroleum stockpiling base adopts storage techniques in accordance with the characteristic of each site. In addition, the bases take thoroughgoing safety measures.
＜ Kushikino National Petroleum Stockpiling Base ＞
218
8
Liquefied Petroleum Gas (LP Gas) Stockpiling
7
LP Gas for national stockpiling project
LP Gas makes up approximately 3% of Japan's primary energy supply. It is used widely in our daily lives, forhousehold use and as fuel for automobiles, thus it is an important energy resource which is indispensable to Japan'ssocial and economic wellbeing.Despite the fact that LP Gas is an integral part of daily life and is used in a wide range of industries, it is impossible
to replace it with other natural resources in the event of a supply shortage, so ensuring a stable supply is particularlyimportant. However, except for the portion produced as a by-product of the crude oil refinery process in Japanese oil refiner-
ies, Japan has been depending on import for 78% of LP Gas total supply. Moreover, 87% of imported LP Gas is origi-nated from the Middle East. Therefore, if LP Gas supply was disrupted, as it was in the Gulf crisis in 1990, it wouldgreatly affect Japan's economy. To ensure the stockpile of LP Gas to guard against unexpected disruptions hasbecome crucial to Japan. The LP Gas stockpiling system is performed in two ways.
LP Gas stockpiling in Japan
①CO2 emissions (a substance that causes global warming) are less than oil and coal.
②No SOx (SO1, SO2) or NOx (NO1, NO2) are produced, hence LP Gas is expected not to produce acid rain and atmospheric pollution.
③No soot or ash is produced.④No damaging of the ozone layer is caused.
⑤The total amount of heat emitted per volume is higher than that of natural gas.
LP Gascharacteristics
Data source: Japan LP Gas Association
Household affairs41％
Middle East84％
Australia5％
East Timor5％
Others2％
Industry21％
Chemical 15％
Automobile7％
Town gas6％
Electricity10％
2012LP Gas demand ratio
2012Japan's importing partners Petroleum gas (LP Gas) stockpiling system
NationalStockpiling
Target : 1,500,000 tons
Petroleum gasstockpiling
PrivateStockpiling
Target : 50 days level(Achieved in fiscal year 1988)
Kurashiki Base Namikata Base
What is Liquefied Petroleum Gas (LP Gas)?
Transition of LP Gas stockpiling, and policy in Japan.
National stockpiling
Private stockpiling
USA4％
In line with the "LPG Report for maintenance of a stable supply", which was released by the Petroleum Council's LP Gas Subcommittee in June 1992, JOGMEC is proceeding with plans to achieve 1.5 million tons of LP Gas for national stockpile, and has moved ahead with construction of five petroleum gas stockpiling bases nationwide (Kamisu-shi, Ibaraki Prefecture; Nanao-shi, Ishikawa Prefecture; Kurashiki-shi, Okayama Prefecture; Namikata-cho in Imabari-shi, Ehime Prefecture; and Fukushima-cho in Matsuura-shi, Nagasaki Prefecture). The Nanao National LP Gas stockpiling base was completed in July 2005, the Fukushima National LP Gas stockpiling base in September 2005, and the Kamisu National LP Gas stockpiling base in December 2005. Both the Kurashiki and Namikata national LP Gas stock-piling bases were completed, and started to operate in March 2013. Since this target has been achieved and is aggre-gated with the 50-day import amount mandatory stockpile by the private sector, the LP Gas stockpiling has reached equivalent to 90-day import amount will be in place. There are two types of storage methods of LP Gas: the "underground rock cavern tank method" (Kurashiki, Nami-kata), which provides a large storage capability and is already successfully used abroad, and the "on-ground low temperature tank method" (Kamisu, Nanao, Fukushima), which is widely used at private LP Gas import bases.
Liquefied Petroleum gas (LP Gas) is a compound of carbon and hydrogen, having two different forms: propane (C3H8) and butane (C4H10). LP Gas is vapor at normal temperature and pressure, but can be easily liquefied when pressurized or refrigerated.
Nationalstockpiling
1.5｠million ton stockpile from fiscal 1993
50 day stockpile maintained Plan to boost stockpile to 50 days
Governmental committee recommended 50 days stockpileby private sector, commencing with 10 days mandatory stockpile from 1980.
Start of private sector stockpilingAmendment of Petroleum Stockpile Law (LP Gas was included as an item to be stockpiled)
Achievement of 50 days stockpile by private sector
Governmental committee recommendedestablishing a national stockpile system.
Policy subcommittee of the government's AdvisoryCommittee on Energy recommends early launch ofnational stockpiling.
Nanao (Ishikawa Prefecture), Fukushima (Nagasaki Prefecture)and Kamisu (Ibaraki Prefecture) bases completed.
Kurashiki Base (Okayama Prefecture), Namikata Base (Ehime Prefecture)
Stockpilepolicy
Privatestockpiling
LP Gas is utilized for among other things cooking, boiling water etc. approximately half (25 million) of the households in Japan use LP Gas. It is also used by taxis. In addition to households use, LP Gas is used as an important material in the petrochemical products, and as fuel in power generation, steel industries as well. Particularly, LP Gas is used in a variety of industrial processes such as heating, drying and burning by a lot of factories in Japan.
218
8
Liquefied Petroleum Gas (LP Gas) Stockpiling
7
LP Gas for national stockpiling project
LP Gas makes up approximately 3% of Japan's primary energy supply. It is used widely in our daily lives, forhousehold use and as fuel for automobiles, thus it is an important energy resource which is indispensable to Japan'ssocial and economic wellbeing.Despite the fact that LP Gas is an integral part of daily life and is used in a wide range of industries, it is impossible
to replace it with other natural resources in the event of a supply shortage, so ensuring a stable supply is particularlyimportant. However, except for the portion produced as a by-product of the crude oil refinery process in Japanese oil refiner-
ies, Japan has been depending on import for 78% of LP Gas total supply. Moreover, 87% of imported LP Gas is origi-nated from the Middle East. Therefore, if LP Gas supply was disrupted, as it was in the Gulf crisis in 1990, it wouldgreatly affect Japan's economy. To ensure the stockpile of LP Gas to guard against unexpected disruptions hasbecome crucial to Japan. The LP Gas stockpiling system is performed in two ways.
LP Gas stockpiling in Japan
①CO2 emissions (a substance that causes global warming) are less than oil and coal.
②No SOx (SO1, SO2) or NOx (NO1, NO2) are produced, hence LP Gas is expected not to produce acid rain and atmospheric pollution.
③No soot or ash is produced.④No damaging of the ozone layer is caused.
⑤The total amount of heat emitted per volume is higher than that of natural gas.
LP Gascharacteristics
Data source: Japan LP Gas Association
Household affairs41％
Middle East84％
Australia5％
East Timor5％
Others2％
Industry21％
Chemical 15％
Automobile7％
Town gas6％
Electricity10％
2012LP Gas demand ratio
2012Japan's importing partners Petroleum gas (LP Gas) stockpiling system
NationalStockpiling
Target : 1,500,000 tons
Petroleum gasstockpiling
PrivateStockpiling
Target : 50 days level(Achieved in fiscal year 1988)
Kurashiki Base Namikata Base
What is Liquefied Petroleum Gas (LP Gas)?
Transition of LP Gas stockpiling, and policy in Japan.
National stockpiling
Private stockpiling
USA4％
In line with the "LPG Report for maintenance of a stable supply", which was released by the Petroleum Council's LP Gas Subcommittee in June 1992, JOGMEC is proceeding with plans to achieve 1.5 million tons of LP Gas for national stockpile, and has moved ahead with construction of five petroleum gas stockpiling bases nationwide (Kamisu-shi, Ibaraki Prefecture; Nanao-shi, Ishikawa Prefecture; Kurashiki-shi, Okayama Prefecture; Namikata-cho in Imabari-shi, Ehime Prefecture; and Fukushima-cho in Matsuura-shi, Nagasaki Prefecture). The Nanao National LP Gas stockpiling base was completed in July 2005, the Fukushima National LP Gas stockpiling base in September 2005, and the Kamisu National LP Gas stockpiling base in December 2005. Both the Kurashiki and Namikata national LP Gas stock-piling bases were completed, and started to operate in March 2013. Since this target has been achieved and is aggre-gated with the 50-day import amount mandatory stockpile by the private sector, the LP Gas stockpiling has reached equivalent to 90-day import amount will be in place. There are two types of storage methods of LP Gas: the "underground rock cavern tank method" (Kurashiki, Nami-kata), which provides a large storage capability and is already successfully used abroad, and the "on-ground low temperature tank method" (Kamisu, Nanao, Fukushima), which is widely used at private LP Gas import bases.
Liquefied Petroleum gas (LP Gas) is a compound of carbon and hydrogen, having two different forms: propane (C3H8) and butane (C4H10). LP Gas is vapor at normal temperature and pressure, but can be easily liquefied when pressurized or refrigerated.
Nationalstockpiling
1.5｠million ton stockpile from fiscal 1993
50 day stockpile maintained Plan to boost stockpile to 50 days
Governmental committee recommended 50 days stockpileby private sector, commencing with 10 days mandatory stockpile from 1980.
Start of private sector stockpilingAmendment of Petroleum Stockpile Law (LP Gas was included as an item to be stockpiled)
Achievement of 50 days stockpile by private sector
Governmental committee recommendedestablishing a national stockpile system.
Policy subcommittee of the government's AdvisoryCommittee on Energy recommends early launch ofnational stockpiling.
Nanao (Ishikawa Prefecture), Fukushima (Nagasaki Prefecture)and Kamisu (Ibaraki Prefecture) bases completed.
Kurashiki Base (Okayama Prefecture), Namikata Base (Ehime Prefecture)
Stockpilepolicy
Privatestockpiling
LP Gas is utilized for among other things cooking, boiling water etc. approximately half (25 million) of the households in Japan use LP Gas. It is also used by taxis. In addition to households use, LP Gas is used as an important material in the petrochemical products, and as fuel in power generation, steel industries as well. Particularly, LP Gas is used in a variety of industrial processes such as heating, drying and burning by a lot of factories in Japan.
On-ground lowtemperature tank
Underground rockcavern tank
On-ground low temperature tank
Kamisu, Nanao and Fukushima
Characteristics
Bases utilizing this
On-ground and low-temperature tank
Inner tank
Outer tank
Vapour layer
Liquid layer
Nitrogen gasInsulator
9 10
＜ Kamisu National LP Gas Stockpiling Base ＞
＜ Nanao National LP Gas Stockpiling Base ＞
National LP Gas Stockpiling Base
Underground rock cavern tank
・Storage tank will be set up below underground water level, the pres-sure from which seals in LP Gas at normal temperature.
・The tank is set up deep under-ground, as the groundwater pres-sure level is higher than the LP Gas pressure.
・Water is supplied to the rock cavern from the water-seal tunnel and wa-ter-seal boring in order to stabilize the underground water pressure.
・This method has been successfully used in crude oil stockpiling bases at Kuji, Kikuma, Kushikino and abroad as well.
Kurashiki and Namikata
Characteristics
Bases utilizing this
＜ Fukushima National LP Gas Stockpiling Base ＞
Kurashiki
NamikataFukushima
The Japanese government decided to construct national LP Gas stockpiling bases adjoining private LP Gas bases in order to minimize construction costs through an effective utilization of existing facilities and outsourcing of operations etc. Currently five bases are in operation nationwide.
＜ Rock cavern tank of the Kurashiki National LP Gas Stockpiling Base ＞
＜ Rock cavern tank of the Namikata National LP Gas Stockpiling Base ＞
・This storage method can store refrigerated LP Gas with low temperature normal pressure in a double-shelled cylindrical tank with a flat bottom.
・A double-hull tank contains empty space between inner and outer tanks made of steel, which can withstand low tempera-tures.
・To insulate, the same principles are used as in a thermos flask. The space between the tanks is filled with an insulator such as nitrogen.
・This method has already been developed and it is a general storage method in petroleum gas import bases.
・Since the groundwater pressure is higher than the LP Gas pressure, the LP Gas is sealed in so there is no leakage.
Underground water level
Water-seal water
Water-seal tunnel Water-seal boring
Groundwater pressure
LP Gas
On-ground lowtemperature tank
Underground rockcavern tank
On-ground low temperature tank
Kamisu, Nanao and Fukushima
Characteristics
Bases utilizing this
On-ground and low-temperature tank
Inner tank
Outer tank
Vapour layer
Liquid layer
Nitrogen gasInsulator
9 10
＜ Kamisu National LP Gas Stockpiling Base ＞
＜ Nanao National LP Gas Stockpiling Base ＞
National LP Gas Stockpiling Base
Underground rock cavern tank
・Storage tank will be set up below underground water level, the pres-sure from which seals in LP Gas at normal temperature.
・The tank is set up deep under-ground, as the groundwater pres-sure level is higher than the LP Gas pressure.
・Water is supplied to the rock cavern from the water-seal tunnel and wa-ter-seal boring in order to stabilize the underground water pressure.
・This method has been successfully used in crude oil stockpiling bases at Kuji, Kikuma, Kushikino and abroad as well.
Kurashiki and Namikata
Characteristics
Bases utilizing this
＜ Fukushima National LP Gas Stockpiling Base ＞
Kurashiki
NamikataFukushima
The Japanese government decided to construct national LP Gas stockpiling bases adjoining private LP Gas bases in order to minimize construction costs through an effective utilization of existing facilities and outsourcing of operations etc. Currently five bases are in operation nationwide.
＜ Rock cavern tank of the Kurashiki National LP Gas Stockpiling Base ＞
＜ Rock cavern tank of the Namikata National LP Gas Stockpiling Base ＞
・This storage method can store refrigerated LP Gas with low temperature normal pressure in a double-shelled cylindrical tank with a flat bottom.
・A double-hull tank contains empty space between inner and outer tanks made of steel, which can withstand low tempera-tures.
・To insulate, the same principles are used as in a thermos flask. The space between the tanks is filled with an insulator such as nitrogen.
・This method has already been developed and it is a general storage method in petroleum gas import bases.
・Since the groundwater pressure is higher than the LP Gas pressure, the LP Gas is sealed in so there is no leakage.
Underground water level
Water-seal water
Water-seal tunnel Water-seal boring
Groundwater pressure
LP Gas
12
Collaboration with the International Community
11
Global oil demand forecast（1）What is IEA?
The IEA (International Energy Agency) was founded in 1974 after the first oil crisis as an autonomous intergovern-mental agency within the OECD by the major oil import-ing countries, including Japan.The purposes of the IEA are for example;・To establish energy security centered on oil in member countries・To establish a stable mid to long-term energy supply and demand structureAs of March 2015, the IEA has 29 member states (see table below for terms of membership).Governing Board Meetings and several Energy Experts Meetings are held regularly (several times a year). They workon various topics of security concerning total energy issues, including emergency measures on oil supply disruptions
（2）How the IEA is significant to JapanThe IEA agreed CERM (Co-ordinated Emergency Response Measures) in 1984, and a decision was made that
member countries would co-operate and release reserves in emergencies, such as when oil supplies stop or likely tostop. The objective of the CERM, is to prevent or ameliorate panic in the market in the early stages of emergencies.CERM have been invoked by the IEA several times and the IEA, and its system, play a very important role in
Japan's energy security.
Collaboration with IEA
Oil demand forecast (by region) Primary energy demand forecast (by energy source)
Unit: Mtoe Unit: Mtoe
Data source: IEA/World Energy Outlook 2014
204020202012
(IEA/World Energy Outlook 2014)
2020
2040
OECD41.9％
Former USSR and Eastern Europe
Asia24.9％
Central & South America6.4％
Africa4.5％
Middle East9.1％
Aviation/marine bunker fuel7.9％
Coal28.1％
Oil30.0％
Gas21.2％
Hydro 10.4％Bio fuel
5.6％
Other2.1％
Nuclear2.6％
Coal24.3％
Oil26.0％
Gas24.2％
Hydro2.9％
Bio fuel10.9％
Other5.0％
Nuclear6.6％OECD
30.1％
Former USSR and Eastern Europe 5.0％
Asia32.3％
Central & South America6.7％
Africa6.0％
Middle East10.9％
Aviation/marine bunker fuel9.2％
IEA ： International Energy Agency
Membershipterms
Objective/Activities
・Members must be member countries of the OECD.・Members must maintain emergency oil stockpiling equiva-lent to at least 90 days of net oil imports.
・To establish energy security, particularly in relation to oil, in member countries.
・To establish a stable structure for mid-and long-term ener-gy supply and demand.
・To cooperate with other countries in reducing dependency on oil imports, through energy conservation methods and the development of alternative energy resources.
・To analyse international energy supply and demand trends.
Gulf War in 1991 Military actionsin Iraq in 2003
Hurricane Katrinain the USA in 2005
2011 Concern about oil supplyin Libya and other regions of theMid-East and Northern Africa
CERM were applied to supply stock-piled oil to the market by member coun-tries. 2.5 million barrels per day (ap-proximately 400,000kl) were supplied. This was based on a decision of the IEA Governing Board Meeting. The CERM lasted for about one and a half months. As a result, soaring crude oil prices came down, and the impact on the economies of oil consuming coun-tries was softened.
In preparation of disruption of oil sup-ply from Iraq, IEA member countries took necessary actions for releasing oil reserves in parallel to discussions with oil-producing countries. Fortunately, there were no reserves released dur-ing this period. However, some ex-perts suggest that such co-operation reassured oil market participants.
Based on the IEA decision to re-lease oil stockpiles for 30 days at 2 mil-lion barrels per day (approximately 300,000kl), each member country took the necessary actions in cooperation. This showed that member countries could act quickly and effectively togeth-er. This further demonstrated the im-portance of oil stockpiling.
Meeting of the IEA
5.3％
Global oil demand is trending toward a decrease in Organization for Economic Co-operation and Development (OECD) member countries due to enhanced energy-saving activities, etc. In non-OECD countries such as China, India, and South East Asian countries, however, demand is expected to increase because of the economic growth, thus overall demand is expected to increase toward 2040. Thus, the importance of oil among energy resources is predicted to remain unchanged in the future. Since oil suppliers are heavily dependent on the politically unstable regions such as Middle East, etc., the possibility of decrease or disruption of the oil supply is predicted to be high in the future. For this reason, oil stockpiling in preparation for an emergency is widely practiced among the world’s major oil-consuming countries, including Europe and the United States, Japan and South Korea, and some Asian countries have also begun developing or considering oil stockpiling. Moreover, oil is an international commodity, and to make stockpile releases and other emergency responses effective, it is important that the main oil-consuming countries coordinate and cooperate rather than acting individually.
AsiaFormer USSR and Eastern Europe
OECDNorth America
EuropeAsia & Oceania
AfricaCentral & South America
Middle East
Total 101.3 103.996.0
41.521.912.07.741.64.919.77.63.6
7.05.7
40.222.211.26.848.25.123.98.74.3
7.66.1
35.419.79.76.057.35.230.010.25.1
8.66.8
31.317.68.35.463.15.233.511.36.2
9.57.0
90.1
non-OECD Member countries
Bunker
Coal
Oil
Gas
Nuclear
Hydro
Bio fuel
Other
Total
4,448
4,761
4,418
1,210
535
2,002
918
18,293
4,211
4,487
3,182
845
392
1,554
308
14,978
3,879
4,194
2,844
642
316
1,344
142
13,361
As increasing tensions in Tunisia, Egypt, and elsewhere in the Mid-East and Northern Africa spilled over into Syria and Bahrain, they spread to Libya, which has among the world's largest oil reserves, and following the outbreak of civil war there, concerns arose that a suspension of oil production and export could have a significant impact on the stable supply of oil globally. To respond to a possible disruption of the world's oil supply due to the situation in Libya or elsewhere, the IEA, with the agreement of its members, decided to implement a coordinated action involving the release of a total of 60 million barrels of reserves (a 30-day supply at 200 barrels per day) from all of its member nations. This coordinated action by the IEA served as a kind of intermediate measure until increased production from oil-producing nations could reach the market.
and the study of energy-saving. IEA member countries are obliged to maintain emergency oil stockpiling of more than 90 days of net import volume. Japan depends on other countries for most of its oil supplies. In the event of oil supply disruption, co-operation with other IEA member countries contributes to not only Japan, but also to the world's energy security.
2013 2020 2030 2040
12
Collaboration with the International Community
11
Global oil demand forecast（1）What is IEA?
The IEA (International Energy Agency) was founded in 1974 after the first oil crisis as an autonomous intergovern-mental agency within the OECD by the major oil import-ing countries, including Japan.The purposes of the IEA are for example;・To establish energy security centered on oil in member countries・To establish a stable mid to long-term energy supply and demand structureAs of March 2015, the IEA has 29 member states (see table below for terms of membership).Governing Board Meetings and several Energy Experts Meetings are held regularly (several times a year). They workon various topics of security concerning total energy issues, including emergency measures on oil supply disruptions
（2）How the IEA is significant to JapanThe IEA agreed CERM (Co-ordinated Emergency Response Measures) in 1984, and a decision was made that
member countries would co-operate and release reserves in emergencies, such as when oil supplies stop or likely tostop. The objective of the CERM, is to prevent or ameliorate panic in the market in the early stages of emergencies.CERM have been invoked by the IEA several times and the IEA, and its system, play a very important role in
Japan's energy security.
Collaboration with IEA
Oil demand forecast (by region) Primary energy demand forecast (by energy source)
Unit: Mtoe Unit: Mtoe
Data source: IEA/World Energy Outlook 2014
204020202012
(IEA/World Energy Outlook 2014)
2020
2040
OECD41.9％
Former USSR and Eastern Europe
Asia24.9％
Central & South America6.4％
Africa4.5％
Middle East9.1％
Aviation/marine bunker fuel7.9％
Coal28.1％
Oil30.0％
Gas21.2％
Hydro 10.4％Bio fuel
5.6％
Other2.1％
Nuclear2.6％
Coal24.3％
Oil26.0％
Gas24.2％
Hydro2.9％
Bio fuel10.9％
Other5.0％
Nuclear6.6％OECD
30.1％
Former USSR and Eastern Europe 5.0％
Asia32.3％
Central & South America6.7％
Africa6.0％
Middle East10.9％
Aviation/marine bunker fuel9.2％
IEA ： International Energy Agency
Membershipterms
Objective/Activities
・Members must be member countries of the OECD.・Members must maintain emergency oil stockpiling equiva-lent to at least 90 days of net oil imports.
・To establish energy security, particularly in relation to oil, in member countries.
・To establish a stable structure for mid-and long-term ener-gy supply and demand.
・To cooperate with other countries in reducing dependency on oil imports, through energy conservation methods and the development of alternative energy resources.
・To analyse international energy supply and demand trends.
Gulf War in 1991 Military actionsin Iraq in 2003
Hurricane Katrinain the USA in 2005
2011 Concern about oil supplyin Libya and other regions of theMid-East and Northern Africa
CERM were applied to supply stock-piled oil to the market by member coun-tries. 2.5 million barrels per day (ap-proximately 400,000kl) were supplied. This was based on a decision of the IEA Governing Board Meeting. The CERM lasted for about one and a half months. As a result, soaring crude oil prices came down, and the impact on the economies of oil consuming coun-tries was softened.
In preparation of disruption of oil sup-ply from Iraq, IEA member countries took necessary actions for releasing oil reserves in parallel to discussions with oil-producing countries. Fortunately, there were no reserves released dur-ing this period. However, some ex-perts suggest that such co-operation reassured oil market participants.
Based on the IEA decision to re-lease oil stockpiles for 30 days at 2 mil-lion barrels per day (approximately 300,000kl), each member country took the necessary actions in cooperation. This showed that member countries could act quickly and effectively togeth-er. This further demonstrated the im-portance of oil stockpiling.
Meeting of the IEA
5.3％
Global oil demand is trending toward a decrease in Organization for Economic Co-operation and Development (OECD) member countries due to enhanced energy-saving activities, etc. In non-OECD countries such as China, India, and South East Asian countries, however, demand is expected to increase because of the economic growth, thus overall demand is expected to increase toward 2040. Thus, the importance of oil among energy resources is predicted to remain unchanged in the future. Since oil suppliers are heavily dependent on the politically unstable regions such as Middle East, etc., the possibility of decrease or disruption of the oil supply is predicted to be high in the future. For this reason, oil stockpiling in preparation for an emergency is widely practiced among the world’s major oil-consuming countries, including Europe and the United States, Japan and South Korea, and some Asian countries have also begun developing or considering oil stockpiling. Moreover, oil is an international commodity, and to make stockpile releases and other emergency responses effective, it is important that the main oil-consuming countries coordinate and cooperate rather than acting individually.
AsiaFormer USSR and Eastern Europe
OECDNorth America
EuropeAsia & Oceania
AfricaCentral & South America
Middle East
Total 101.3 103.996.0
41.521.912.07.741.64.919.77.63.6
7.05.7
40.222.211.26.848.25.123.98.74.3
7.66.1
35.419.79.76.057.35.230.010.25.1
8.66.8
31.317.68.35.463.15.233.511.36.2
9.57.0
90.1
non-OECD Member countries
Bunker
Coal
Oil
Gas
Nuclear
Hydro
Bio fuel
Other
Total
4,448
4,761
4,418
1,210
535
2,002
918
18,293
4,211
4,487
3,182
845
392
1,554
308
14,978
3,879
4,194
2,844
642
316
1,344
142
13,361
As increasing tensions in Tunisia, Egypt, and elsewhere in the Mid-East and Northern Africa spilled over into Syria and Bahrain, they spread to Libya, which has among the world's largest oil reserves, and following the outbreak of civil war there, concerns arose that a suspension of oil production and export could have a significant impact on the stable supply of oil globally. To respond to a possible disruption of the world's oil supply due to the situation in Libya or elsewhere, the IEA, with the agreement of its members, decided to implement a coordinated action involving the release of a total of 60 million barrels of reserves (a 30-day supply at 200 barrels per day) from all of its member nations. This coordinated action by the IEA served as a kind of intermediate measure until increased production from oil-producing nations could reach the market.
and the study of energy-saving. IEA member countries are obliged to maintain emergency oil stockpiling of more than 90 days of net import volume. Japan depends on other countries for most of its oil supplies. In the event of oil supply disruption, co-operation with other IEA member countries contributes to not only Japan, but also to the world's energy security.
2013 2020 2030 2040
14
Collaboration with the International Community Emergency Release
13
Petroleum Stockpiling Systems in IEA member countries Emergency release scheme
Emergency release exercise
Actions that utilize market functions Actions by regulatory methods
○Devise oil supply goals based on the Petroleum Sup-ply and Demand Adjustment Law, and file plans of oil production, imports, and sales, and their amendment instructions (review when there is still a significant supply stop situation after stockpile releases).
○Law Concerning Emergency Stocking of Materials and Products Related to Daily Life (Designation of ma-terials, price trends and supply and demand)
○Approach to oil producing countries to increase oil production
○Provide and collect information on production, im-ports, and inventory
○Request to refrain from excessive stockpiling
Actions to guarantee supply besides stockpile releases
Release of stockpiled oil(If the oil stockpile becomes shorter than the 90 days of reserves requested by the IEA, prompt recovery shall be implemented).
○Supply shortage situation○IEA shall immediately give an assessment of the ef-fect of oil supply disruption in accordance with the
○Major supply disruption situation○IEA is obligated to control demand when ESS* is executed. (Replacement possible by release of re-serves)
○Review of actions under laws and regulations.
（1）Public stockpiling system
（1）National stockpiling system
（2）Agency stockpiling systemThis is a system in which a public stockpiling agency established by law implements stockpiling. Agencies' roles and
legal positions differ from country to countrydepending on the market structure and government
（2）Private sector stockpiling systemThis system applies to private companies which
are required by law to stockpile a specified amountof oil using their own facilities and at their expense. Large percentages of private sector stockpiles
are stored in the production and distribution stagesin refineries and oil terminals. The majority of crude
Data source:IEA oil supply security 2007
Trend in oil stockpiling in Asian countries
This is a system of stockpiling oil by government or public agencies for use in emergencies, separate from what is called the operational inventory (stockpiling).
This is a system whereby government taxes are used, directly by government or through stockpiling organizations, to operate and maintain stockpiling bases and stockpiled oil. Since the decision to release national stockpiled oil is taken by the government, it is a secure method of increasing the oil supply to the crude oil market. Moreover, since the intent of the government can be demonstrated by public announcement, a big "announcement effect" is expected. The US, Japan, and South Korea, amongst others, have adopted, this system.
oil retained is of a quality suitable for purification at adjacent oil refineries. In case of an emergency, stockpiled petroleum products can be released promptly through the distribution network so that the crude oil may be quickly delivered to consumers in response to their needs. Japan, South Korea, and Europe have all adopted this system.
In Asia, both Japan and Korea are IEA member nations, and have oil stockpiles in excess of the 90 days of net import volume that is the IEA standard. In China, India, and the ASEAN, where strong economic growth has signifi-cantly increased demand for oil, efforts to strengthen energy security are underway, including building of oil stockpiles and establishment of emergency response systems. In China, four stockpiling bases have been completed as part of the first national oil stockpiling program, and plans are moving forward for a second program. In India, one of the three bases under the country’s first national oil stockpil-ing base plan was completed in 2015, with the other bases planned for completion in 2016. Both China and India have set a goal of achieving a 90-day stockpile by 2020. In ASEAN, based on the 2002 Hiranuma Initiative proposed by Japan for energy cooperation between Japan, China, Korea and ASEAN, an oil stockpiling working group (with JOGMEC providing a joint secretariat) was established under the auspices of the ASEAN+3 Summit Meeting of energy ministers, and began considering an Oil Stockpile Roadmap for the region. At the ASEAN+3 meeting of energy ministers in 2010, the Oil Stockpile Roadmap was approved, and the nations of ASEAN continues to work to meet their respective stockpiling targets under that plan. Given that these oil stockpiling efforts can lead to greater energy security not just for Asia, but globally as well, JOGMEC collaborates with the government, the IEA and others to provide cooperation with and urge further progress in efforts related to building oil stockpiles in each country.
policy to some extent. Specifically, in Germany, for example, which adopts the agency stockpiling system, an oil stockpiling agency called the EBV (Erdölbevorratungsverband) manages Germany's stockpiles. EBV maintains stockpiled oil basically independently from private oil companies, although contributions are required from such companies in order to comply with government imposed stockpil-ing obligations. This system has also been adopted by France.
In the event that there is a shortage or could be a shortage in the supply of oil, an appropriate quick response is crucial in order to stabilize supplies and allay any social and economic upheaval. In taking specific measures, it is necessary to respond with a flexible and adequate combination of demand controls and releasing of stockpiled oil, based on supply reduction levels, the expected duration of any shortage, and domestic supply and demand trends, while taking into consideration of cooperation and coordination with the IEA. As any such response will depend upon the particular type of emergency, it is necessary to be flexible in order to tailor any countermeasures to the situation at hand. This may be more clearly explained below.
In order to build a response system that enables a prompt and smooth release of stockpiled oil in times of emergency, since the founding of the former Japan National Oil Corporation, we have been conducting emergency release exercises by mooring tankers at a National Petroleum Stockpiling Base and performing loading and unloading of oil, in conditions comparable with potential emergency scenarios. Since 1997, we have been practicing new alternative training methods that do not involve mooring tankers, in order to improve loading and unloading techniques; these complement past emergency release exercises. Emergency release exercises are also conducted to properly train employees to prepare against any emergencies and maintain the safety of working conditions through the inspection of stockpiling facilities in order to prevent any leakages of oil and accidents in the workplace. They also increase awareness of stockpiling and emergency releases amongst local residents and the energy community more generally.
CERM*, and stockpiled oil may be released through international cooperation.
* CERM：Co-ordinated Emergency Response Measures * It is set forth under the International Energy Plan Agreement (IEP Agreement) that ESS must be executed when the oil supply disruption quantity in all IEA Member countries or in any single country exceeds 7% of the consumption level.
New Zealand
USA
Czech
Japan
SouthKorea
Poland
National stockpiling Agency Stockpiling
Estonia Belgium Germany
Hungary
Ireland
SlovakRepublic
Austria Denmark Netherlands
Portugal
Spain France Italy
Finland
Luxembourg Greece Norway Sweden
Switzerland Turkey UKPrivate sector stockpiling
14
Collaboration with the International Community Emergency Release
13
Petroleum Stockpiling Systems in IEA member countries Emergency release scheme
Emergency release exercise
Actions that utilize market functions Actions by regulatory methods
○Devise oil supply goals based on the Petroleum Sup-ply and Demand Adjustment Law, and file plans of oil production, imports, and sales, and their amendment instructions (review when there is still a significant supply stop situation after stockpile releases).
○Law Concerning Emergency Stocking of Materials and Products Related to Daily Life (Designation of ma-terials, price trends and supply and demand)
○Approach to oil producing countries to increase oil production
○Provide and collect information on production, im-ports, and inventory
○Request to refrain from excessive stockpiling
Actions to guarantee supply besides stockpile releases
Release of stockpiled oil(If the oil stockpile becomes shorter than the 90 days of reserves requested by the IEA, prompt recovery shall be implemented).
○Supply shortage situation○IEA shall immediately give an assessment of the ef-fect of oil supply disruption in accordance with the
○Major supply disruption situation○IEA is obligated to control demand when ESS* is executed. (Replacement possible by release of re-serves)
○Review of actions under laws and regulations.
（1）Public stockpiling system
（1）National stockpiling system
（2）Agency stockpiling systemThis is a system in which a public stockpiling agency established by law implements stockpiling. Agencies' roles and
legal positions differ from country to countrydepending on the market structure and government
（2）Private sector stockpiling systemThis system applies to private companies which
are required by law to stockpile a specified amountof oil using their own facilities and at their expense. Large percentages of private sector stockpiles
are stored in the production and distribution stagesin refineries and oil terminals. The majority of crude
Data source:IEA oil supply security 2007
Trend in oil stockpiling in Asian countries
This is a system of stockpiling oil by government or public agencies for use in emergencies, separate from what is called the operational inventory (stockpiling).
This is a system whereby government taxes are used, directly by government or through stockpiling organizations, to operate and maintain stockpiling bases and stockpiled oil. Since the decision to release national stockpiled oil is taken by the government, it is a secure method of increasing the oil supply to the crude oil market. Moreover, since the intent of the government can be demonstrated by public announcement, a big "announcement effect" is expected. The US, Japan, and South Korea, amongst others, have adopted, this system.
oil retained is of a quality suitable for purification at adjacent oil refineries. In case of an emergency, stockpiled petroleum products can be released promptly through the distribution network so that the crude oil may be quickly delivered to consumers in response to their needs. Japan, South Korea, and Europe have all adopted this system.
In Asia, both Japan and Korea are IEA member nations, and have oil stockpiles in excess of the 90 days of net import volume that is the IEA standard. In China, India, and the ASEAN, where strong economic growth has signifi-cantly increased demand for oil, efforts to strengthen energy security are underway, including building of oil stockpiles and establishment of emergency response systems. In China, four stockpiling bases have been completed as part of the first national oil stockpiling program, and plans are moving forward for a second program. In India, one of the three bases under the country’s first national oil stockpil-ing base plan was completed in 2015, with the other bases planned for completion in 2016. Both China and India have set a goal of achieving a 90-day stockpile by 2020. In ASEAN, based on the 2002 Hiranuma Initiative proposed by Japan for energy cooperation between Japan, China, Korea and ASEAN, an oil stockpiling working group (with JOGMEC providing a joint secretariat) was established under the auspices of the ASEAN+3 Summit Meeting of energy ministers, and began considering an Oil Stockpile Roadmap for the region. At the ASEAN+3 meeting of energy ministers in 2010, the Oil Stockpile Roadmap was approved, and the nations of ASEAN continues to work to meet their respective stockpiling targets under that plan. Given that these oil stockpiling efforts can lead to greater energy security not just for Asia, but globally as well, JOGMEC collaborates with the government, the IEA and others to provide cooperation with and urge further progress in efforts related to building oil stockpiles in each country.
policy to some extent. Specifically, in Germany, for example, which adopts the agency stockpiling system, an oil stockpiling agency called the EBV (Erdölbevorratungsverband) manages Germany's stockpiles. EBV maintains stockpiled oil basically independently from private oil companies, although contributions are required from such companies in order to comply with government imposed stockpil-ing obligations. This system has also been adopted by France.
In the event that there is a shortage or could be a shortage in the supply of oil, an appropriate quick response is crucial in order to stabilize supplies and allay any social and economic upheaval. In taking specific measures, it is necessary to respond with a flexible and adequate combination of demand controls and releasing of stockpiled oil, based on supply reduction levels, the expected duration of any shortage, and domestic supply and demand trends, while taking into consideration of cooperation and coordination with the IEA. As any such response will depend upon the particular type of emergency, it is necessary to be flexible in order to tailor any countermeasures to the situation at hand. This may be more clearly explained below.
In order to build a response system that enables a prompt and smooth release of stockpiled oil in times of emergency, since the founding of the former Japan National Oil Corporation, we have been conducting emergency release exercises by mooring tankers at a National Petroleum Stockpiling Base and performing loading and unloading of oil, in conditions comparable with potential emergency scenarios. Since 1997, we have been practicing new alternative training methods that do not involve mooring tankers, in order to improve loading and unloading techniques; these complement past emergency release exercises. Emergency release exercises are also conducted to properly train employees to prepare against any emergencies and maintain the safety of working conditions through the inspection of stockpiling facilities in order to prevent any leakages of oil and accidents in the workplace. They also increase awareness of stockpiling and emergency releases amongst local residents and the energy community more generally.
CERM*, and stockpiled oil may be released through international cooperation.
* CERM：Co-ordinated Emergency Response Measures * It is set forth under the International Energy Plan Agreement (IEP Agreement) that ESS must be executed when the oil supply disruption quantity in all IEA Member countries or in any single country exceeds 7% of the consumption level.
New Zealand
USA
Czech
Japan
SouthKorea
Poland
National stockpiling Agency Stockpiling
Estonia Belgium Germany
Hungary
Ireland
SlovakRepublic
Austria Denmark Netherlands
Portugal
Spain France Italy
Finland
Luxembourg Greece Norway Sweden
Switzerland Turkey UKPrivate sector stockpiling
1615
（2）Facilities and equipmentIn order to prepare against disasters such as fires and oil spills, oil weirs, dikes and fire extinguisher facilities have
been constructed. Fully trained fire prevention staffs are on-call at all times and in addition, large capacity form moni-tor system, large chemical fire engines as well as large squirter and foam solution trucks are all on stand-by, alongwith oil boom extenders and oil recovery vessels. Therefore, our safety measures are comprehensive.
Safety and disaster prevention
Engagement in environmental protectionMonitoring operations in the control room Routine inspection of instrument panels
（3）Maintenance and improvement ofdisaster prevention techniques
An outdoor water supply valve, which supplieswater to extinguish fires.
A foam fire hydrant, which supplies a foam fire-extinguishing agent to extinguish fires.
Large capacity foam monitors.
An oil weir and some dikes which respectivelycollect and prevent oil spills from tanks.
An oil recovery vessel, which collects oil spills at sea. An oil boom being extended to contain an oil spill.
Environmentalprotection of
stockpiling basesAir pollution monitor
Wastewater processor
Color co-ordination
noitomorp noitatseroffA)knat egrahcsid( nisab drauG
Safety & Disaster Prevention and EnvironmentalProtection at National Petroleum Stockpiling Bases
Health and safety patrols
We perform regular disaster exercises at the bases throughout the year, along with disaster exercises held in coopera-tion with national and regional govern-ments, local fire departments, and the coasta Guard, and constantly aim to improve disaster prevention techniques by attending training courses at special-ist organizations in Japan and abroad, including firefighting and marine oil spill response exercises.
Oil Discharge Prevention and Control Council Marine EmergencyTraining; Oil boom expansion training (Kushikino)
Tank cooling training (Shibushi)
General disaster exercise: Large capacityfoam radiant drill (Mutsu-Ogawara)
Fire fighting drill (Maritime DisasterPrevention Center, Yokosuka)
Safe operation of stockpiling facilities is achieved when stockpiling facilities are properly constructed and responsibly managed. Therefore, petroleum stockpiling must comply with a number of laws and regulations, including the Fire Service Law, Petroleum Complex Disaster Preventive Law and the High Pressure Gas Safety Law. Comprehensive safety and disaster prevention plans are also required, as well as ensuring that stockpiling facilities are operated in a vigilant manner. （1）Supervision system Individual facilities and equipment are earthquake-proofed and fire-proofed. In addition, monitoring devices such asfire detectors and oil spill detectors are installed at all facilities in order to detect any accidents at an early stage and effect an appropriately prompt response. Additionally, routine patrols around the facilities are conducted on a regular basis.
National Petroleum Stockpiling Bases have been equipped with extensive environmental protection facilities to protect the surrounding environment. We use fuel with a low sulfur content to prevent air pollution, as well as making any gases produced from stored crude oil harmless by releasing them through crude oil gas treatment system. Wastewater is cleaned using a wastewater processor and a guard basin in order to remove any portion of oil content before it is discharged into the sea. In addition, greenery is planted in the stockpiling bases to promote afforestation and stockpiling facilities are color co-ordinated so that they fit in with the surrounding landscape.
1615
（2）Facilities and equipmentIn order to prepare against disasters such as fires and oil spills, oil weirs, dikes and fire extinguisher facilities have
been constructed. Fully trained fire prevention staffs are on-call at all times and in addition, large capacity form moni-tor system, large chemical fire engines as well as large squirter and foam solution trucks are all on stand-by, alongwith oil boom extenders and oil recovery vessels. Therefore, our safety measures are comprehensive.
Safety and disaster prevention
Engagement in environmental protectionMonitoring operations in the control room Routine inspection of instrument panels
（3）Maintenance and improvement ofdisaster prevention techniques
An outdoor water supply valve, which supplieswater to extinguish fires.
A foam fire hydrant, which supplies a foam fire-extinguishing agent to extinguish fires.
Large capacity foam monitors.
An oil weir and some dikes which respectivelycollect and prevent oil spills from tanks.
An oil recovery vessel, which collects oil spills at sea. An oil boom being extended to contain an oil spill.
Environmentalprotection of
stockpiling basesAir pollution monitor
Wastewater processor
Color co-ordination
noitomorp noitatseroffA)knat egrahcsid( nisab drauG
Safety & Disaster Prevention and EnvironmentalProtection at National Petroleum Stockpiling Bases
Health and safety patrols
We perform regular disaster exercises at the bases throughout the year, along with disaster exercises held in coopera-tion with national and regional govern-ments, local fire departments, and the coasta Guard, and constantly aim to improve disaster prevention techniques by attending training courses at special-ist organizations in Japan and abroad, including firefighting and marine oil spill response exercises.
Oil Discharge Prevention and Control Council Marine EmergencyTraining; Oil boom expansion training (Kushikino)
Tank cooling training (Shibushi)
General disaster exercise: Large capacityfoam radiant drill (Mutsu-Ogawara)
Fire fighting drill (Maritime DisasterPrevention Center, Yokosuka)
Safe operation of stockpiling facilities is achieved when stockpiling facilities are properly constructed and responsibly managed. Therefore, petroleum stockpiling must comply with a number of laws and regulations, including the Fire Service Law, Petroleum Complex Disaster Preventive Law and the High Pressure Gas Safety Law. Comprehensive safety and disaster prevention plans are also required, as well as ensuring that stockpiling facilities are operated in a vigilant manner. （1）Supervision system Individual facilities and equipment are earthquake-proofed and fire-proofed. In addition, monitoring devices such asfire detectors and oil spill detectors are installed at all facilities in order to detect any accidents at an early stage and effect an appropriately prompt response. Additionally, routine patrols around the facilities are conducted on a regular basis.
National Petroleum Stockpiling Bases have been equipped with extensive environmental protection facilities to protect the surrounding environment. We use fuel with a low sulfur content to prevent air pollution, as well as making any gases produced from stored crude oil harmless by releasing them through crude oil gas treatment system. Wastewater is cleaned using a wastewater processor and a guard basin in order to remove any portion of oil content before it is discharged into the sea. In addition, greenery is planted in the stockpiling bases to promote afforestation and stockpiling facilities are color co-ordinated so that they fit in with the surrounding landscape.
18
Operations of JOGMEC(Japan Oil, Gas and Metals National Corporation)
17
JOGMEC organization and operations of its oil stockpiling groupsOn February 29, 2004, Japan Oil, Gas and Metals
National Corporation (JOGMEC) was founded with theobjective that it would take over the operations of the JapanNational Oil Corporation (JNOC) and perform integratedmanagement operations for national stockpiling.
Internal Audit Office
General Coordination Department
Financial Management & Accounting Department
Evaluation Department
Oil & Gas Upstream Business Unit
Reseach & Analysis Department
Metals & Coal Finance and Environment Unit
Geothermal Resource Development Department
Stockpile Planning Department
Petroleum Stockpiling Management Department
LPG Stockpile Management Department
Rare Metals Stockpile Department
Kamisu Site Management Office
Nanao Site Management Office
Fukushima Site Management Office
Kurashiki Project Management Office
Namikata Project Management Office
Tomakomai Site Management Office
Mutsu-Ogawara Site Management Office
Akita Site Management Office
Kuji Site Management Office
Fukui Site Management Office
Kikuma Site Management Office
Shirashima Site Management Office
Kamigotou Site Management Office
Kushikino Site Management Office
Shibushi Site Management Office
PresidentExecutive Vice
PresidentExecutive Director,Member of the Board
Auditor
Government
Monitoring
Crude oil
JNOC National stockpilingcompanies
Base facility landsLands
Pre-transition Post-transition
Response to emergencydischarge
Response to disaster
Reduction of costs
Government
TankTank
Base facilities
JOGMECOperation service
companies
Integrated management operations
Carries out alloperations otherthan management.
Please take charge of my crude oil at your bases.Please operate safely.
Help us to manage and oper-ate government crude oil and facilities in a safe manner.
Integrate management of crude oil and facilities.
・National stockpiled oil man-agement consignment con-tract
・National stockpiled facility management consignment contract
・National stockpiled oil base operation consign-ment contract
Base facility lands
Crude oilstorage contract
Ground lease contract
(*) What is integrated management of national stockpile?Integrated management operations do not only cover the management of government oil stockpiles and bases, but also relate to all companies in respect of oil reserves, which a gov-ernment cannot perform by itself, such as reducing oil stockpiling costs and designing proper response procedures, including emergency releases, in the event of a supply disruption.
1 Owners (2)National stockpiling bases
(1)National stockpiled petroleum
(3)Lands for national stockpiling base
2 Integrated management of government stockpiles*
3 Operation of national stockpiling bases
Pre-transition
JNOC
National stockpiling companies(70% of capital provided by JNOC)
JNOC
JNOC
Nationalstockpilingcompanies
Post-transitionAfter Feb. 29th 2004
Government
Government(Integrated management
by JOGMEC*)
JOGMEC outsources tooperating companies(investment fromprivate sector, etc.)
Operations of JOGMEC's Petroleum and LPG stockpile departments
・Proper maintenance and management of stockpiled petroleum and LPG quality
・Safe maintenance and management of stockpiling bases
・Management of contracts on private tank usage
・Promotion of research and technology development
・Management of construction contracts of bases
・Preparation for emergency response release, etc.
・Loans to private companies for pur-chase of oil & LPG
・Capital investment and loans to joint stockpiling companies for maintenance of their bases
Integrated management ofgovernment stockpiling
Support forprivate stockpiling
Maintenance of national stock-piles with safety, efficiency and readiness.
・Offer and collect information on oil stockpiling
・Exchange information with other interna-tional oil stockpiling organization
・Dispatch oil stockpiling specialists・Accept international visitors to oil stock-piling bases
Cooperation withinternational community
Cooperation with international community on oil stockpiling, and strengthen collaboration with other international oil stockpiling organizations.
System transition related to national petroleum stockpiling
Oil & Gas Upstream Technology Unit
Metals Strategy & Exploration Unit
Stockpile Unit
Preparing conditions for financial support to private stockpiling companies for fulfillment of legal stockpiling obligation: oil for 70 days, LPG for 50 days.
Through JNOC, national petroleum stockpiling project started in 1978. Before its dissolution, JNOC took the lead in national stockpiling and owned the national stockpiled petroleum and lands for national stockpiling base. Further-more, national stockpiling companies were founded with a 70% capital investment by JNOC to build and operate national stockpiling bases and the know-how of the private sector was used by JNOC to run national petroleum stockpil-ing safely and efficiently. A restructuring concerning national stockpiling was enacted based on the Plan for Reorganization and Rational-ization of Special Public Corporations approved by the Cabinet in December 2001. The original objective of national stockpiling, which was "to maintain stockpiled petroleum safely and efficiently, and to release them safely and promptly in emergencies, in order to stabilize Japanese oil supplies", remains unchanged and continues to be carried out.
Lands
Lands
Crude oil
Crude oil
18
Operations of JOGMEC(Japan Oil, Gas and Metals National Corporation)
17
JOGMEC organization and operations of its oil stockpiling groupsOn February 29, 2004, Japan Oil, Gas and Metals
National Corporation (JOGMEC) was founded with theobjective that it would take over the operations of the JapanNational Oil Corporation (JNOC) and perform integratedmanagement operations for national stockpiling.
Internal Audit Office
General Coordination Department
Financial Management & Accounting Department
Evaluation Department
Oil & Gas Upstream Business Unit
Reseach & Analysis Department
Metals & Coal Finance and Environment Unit
Geothermal Resource Development Department
Stockpile Planning Department
Petroleum Stockpiling Management Department
LPG Stockpile Management Department
Rare Metals Stockpile Department
Kamisu Site Management Office
Nanao Site Management Office
Fukushima Site Management Office
Kurashiki Project Management Office
Namikata Project Management Office
Tomakomai Site Management Office
Mutsu-Ogawara Site Management Office
Akita Site Management Office
Kuji Site Management Office
Fukui Site Management Office
Kikuma Site Management Office
Shirashima Site Management Office
Kamigotou Site Management Office
Kushikino Site Management Office
Shibushi Site Management Office
PresidentExecutive Vice
PresidentExecutive Director,Member of the Board
Auditor
Government
Monitoring
Crude oil
JNOC National stockpilingcompanies
Base facility landsLands
Pre-transition Post-transition
Response to emergencydischarge
Response to disaster
Reduction of costs
Government
TankTank
Base facilities
JOGMECOperation service
companies
Integrated management operations
Carries out alloperations otherthan management.
Please take charge of my crude oil at your bases.Please operate safely.
Help us to manage and oper-ate government crude oil and facilities in a safe manner.
Integrate management of crude oil and facilities.
・National stockpiled oil man-agement consignment con-tract
・National stockpiled facility management consignment contract
・National stockpiled oil base operation consign-ment contract
Base facility lands
Crude oilstorage contract
Ground lease contract
(*) What is integrated management of national stockpile?Integrated management operations do not only cover the management of government oil stockpiles and bases, but also relate to all companies in respect of oil reserves, which a gov-ernment cannot perform by itself, such as reducing oil stockpiling costs and designing proper response procedures, including emergency releases, in the event of a supply disruption.
1 Owners (2)National stockpiling bases
(1)National stockpiled petroleum
(3)Lands for national stockpiling base
2 Integrated management of government stockpiles*
3 Operation of national stockpiling bases
Pre-transition
JNOC
National stockpiling companies(70% of capital provided by JNOC)
JNOC
JNOC
Nationalstockpilingcompanies
Post-transitionAfter Feb. 29th 2004
Government
Government(Integrated management
by JOGMEC*)
JOGMEC outsources tooperating companies(investment fromprivate sector, etc.)
Operations of JOGMEC's Petroleum and LPG stockpile departments
・Proper maintenance and management of stockpiled petroleum and LPG quality
・Safe maintenance and management of stockpiling bases
・Management of contracts on private tank usage
・Promotion of research and technology development
・Management of construction contracts of bases
・Preparation for emergency response release, etc.
・Loans to private companies for pur-chase of oil & LPG
・Capital investment and loans to joint stockpiling companies for maintenance of their bases
Integrated management ofgovernment stockpiling
Support forprivate stockpiling
Maintenance of national stock-piles with safety, efficiency and readiness.
・Offer and collect information on oil stockpiling
・Exchange information with other interna-tional oil stockpiling organization
・Dispatch oil stockpiling specialists・Accept international visitors to oil stock-piling bases
Cooperation withinternational community
Cooperation with international community on oil stockpiling, and strengthen collaboration with other international oil stockpiling organizations.
System transition related to national petroleum stockpiling
Oil & Gas Upstream Technology Unit
Metals Strategy & Exploration Unit
Stockpile Unit
Preparing conditions for financial support to private stockpiling companies for fulfillment of legal stockpiling obligation: oil for 70 days, LPG for 50 days.
Through JNOC, national petroleum stockpiling project started in 1978. Before its dissolution, JNOC took the lead in national stockpiling and owned the national stockpiled petroleum and lands for national stockpiling base. Further-more, national stockpiling companies were founded with a 70% capital investment by JNOC to build and operate national stockpiling bases and the know-how of the private sector was used by JNOC to run national petroleum stockpil-ing safely and efficiently. A restructuring concerning national stockpiling was enacted based on the Plan for Reorganization and Rational-ization of Special Public Corporations approved by the Cabinet in December 2001. The original objective of national stockpiling, which was "to maintain stockpiled petroleum safely and efficiently, and to release them safely and promptly in emergencies, in order to stabilize Japanese oil supplies", remains unchanged and continues to be carried out.
Lands
Lands
Crude oil
Crude oil
AdultsSenior high schoolstudents and college
students
Elementary schoolstudents and juniorhigh school students
Admission charge 500 yen700 yen 300 yen
Annual pass 1,000 yen1,400 yen 600 yen
Group admissionrate (for groups of
20 or more)500 yen 300 yen 200 yen
*Admission to the Petroleum Culture Hall and other petroleum stockpiling base related display facilities is free.*There is free admission for pre-school-age children.*There is free admission for holders of a disability certificate and their caregivers.
20
Operations of JOGMEC(Japan Oil, Gas and Metals National Corporation) Encouraging Familiarity with Petroleum Stockpiling
19
Mid-term goals are targets set by the government, which independent administrative institutions are to achieve overthe next 3-5 years. These ensure that all forms of operations are to be performed as efficiently and effectively as pos-sible, as well as making business operations more transparent. Independent administrative institutions devise mid-term plans, which set out future business operations to achieve their mid-term goals.JOGMEC aims to achieve the mid-term goals by creating our mid-term plan organically and utilizing integral tech-
nology and know-how on oil and LP Gas, as well as executing operations efficiently and effectively. This will ensure astable supply of oil and LP Gas. The progress of the mid-term plan is evaluated every year by the "EvaluationCommittee for Independent Administrative Institutions", who review all aspect of business operations.
Mid-term Goals and Mid-term Plan Exhibition facilities
Basic keywords
Operations ofpetroleum and LPG stockpile
departments3． Cooperation with international community
1． Integrated management of national stockpiles2． Support for private stockpiling
Shinkamigoto-cho Oil Stockpiling Memorial Hall 1F1549-6 Aokata-go, Shinkamigoto-cho,Minamimatsuura-gun, Nagasaki 857-4404Tel +81-959-52-2500
Open
Closed
Admission
10:00-18:00
Wednesdays12/29-1/3
Free
Tel +81-996-32-4747
Open
Closed
Admission
9:00-17:00(Last admission: 16:00)
Tuesdays, Wednesdays, 12/30-1/3
Free
Open
Closed
Admission
9:00-18:00 (April-October) 10:00-16:00 (November-March)
Mondays (or the next working day if Monday is a public holiday), January 1, and December 31
●
ShirashimaExhibitionCenter
Pier to Shirashima
●Yoshino Gypsum
Hibikinada BridgeCosmos Road
To Waita
●Fukuoka BankWakamatsu Ward
Office
●Civic HallWakato BridgeTo Futajima Wakamatsu Station
1-108 Hibiki-machi, Wakamatsu-ku,Kitakyushu-shi, Fukuoka 808-0021Tel +81-93-752-1460
Open
Closed
Admission
10:00-16:00(Last admission : 15:30)
Mondays and every 4th Tuesday.(12/29-1/3)
Free
Shirashima Exhibition Center
Energy Discovery Center Kapy Plaza
To Nama
To Narao
To Arikavra
Tsubaki Street●Aokata shrine
Residentialpolice box
Saihi bus Route 384
Bus Street
Societyof Commerceand Industry
●Postoffice
● Kamigoto-cho Fisheries cooperative
●Gymnasium
Tsurido River
Energy Discovery Center Kapy Plaza
Chikabi Exhibition HallGuide board
Japan National PetroleumStockpiling Kushikino Office
Seisatsu Industrial Park
●Ferry shelter
KushikinoNew Port Gotanda River
KushikinoStation
City Hall ●
JRKagoshimaMain LineR
oute 3
Chikabi Exhibition Hall
Moguranpia
Overview of Third Mid-Term Plan (FY2013-2017)
■Strengthen national stockpiling bases based on results of reviews of regional disaster plans in areas hosting stockpiling bases.
■Target completing implementation of key anti-earthquake and anti-tsunami measures at all national stockpiling bases within the period set in the mid-term plan.
■Maintain a structure capable of completing reserve releases at the quantity determined in the shortest time possible.
■Implement programs for switching oil types and for transfers between bases, etc. as part of an emergency response system.
■Conduct appropriate release simulations and exercises in peace times.■Promote cooperation, etc. with the International Energy Agency (IEA) and other agencies responsible for stockpiling in neighboring countries.
■Provide personnel and technical assistance as necessary to implement emergency oil supply coordination plans or emergency LP gas supply coordination plans based on legislation regarding the securing of petroleum stockpiles.
■Enact measures to improve ability to release national stockpiled petroleum, utilizing loans to cooperating stockpiling companies.
■Provide reliable, prompt loans based on safe, efficient use of funds related to loans for private stockpiling.
■Continue to work toward more efficient management of national petroleum stockpiling bases, always on the major premise of ensuring safe operation.
■Continue to promote the appropriate management of operations at national LP gas stockpiling bases, while working to achieve more efficient operations to control costs.
■Provide advice and information that can contribute to lower costs for use of tanks leased from the private sector.
■In the course of more efficient base management, continue efforts to conduct exercises and other initiatives to ensure adequate disaster prevention measures and prevent the spread of damage during disasters.
■Work to gather information needed to enable the stable, efficient procurement of LP gas from global markets, while phasing in LP gas transfer to the bases with adequate regard for safety.
■Based on LP gas market trends, etc., and under government direction, complete transfer of supplies to underground stockpiling bases by the end of the period targeted in the mid-term plan, with the goal of establishing a national LP gas stockpile of 1.5 million tons.
■Contribute to enhancing Japan's energy security by strongly promoting international cooperation in petroleum and LP gas stockpiling, and by exchanging information about policies and technological trends and cooperating with stockpiling agencies in neighboring countries and related agencies in Japan.
■In particular, given the importance of a stronger stockpiling system in the Asian region to Japan's own energy security, we should strongly promote cooperation with and encouragement of the establishment of stockpiling infrastructure among ASEAN nations. At the same time, we will meet regularly with the Korea National Oil Corporation (KNOC) to ensure bilateral cooperation in establishing a structure for stockpiling cooperation among the nations of Asia.
■Smoothly implement a joint stockpiling program with oil producing nations to ensure Japan's energy security in times of emergency.
■Promote research studies with the aim of further increasing efficiency and streamlining of national stockpil-ing operations.
■Work toward harmony with regional communities by exchanging information with relevant agencies among local public institutions, and by fostering community exchanges and cooperation.
Fundamental Enhancement of Risk Response Capabilities
Maintain a balance between safe administration and efficient operation of the national stockpiling system, and establish a system for national stockpiling of LP gas.
Enhance Japan's energy security through promotion of international cooperation, etc.
1
2
3
Kuji Bay
Underground Rock Cavern Tank
Kuji National Petroleum Stockpile Bases
Moguranpia
Hanzaki Fishing Port
JR Hachinohe Line
To HachinoheRoute 45
To NinoheRoute 395
Natsui River
Kuji River
Route 45 Kuji Road Rikuchu-Natsui
Station
Nagasakibana Park
21803 Nomoto, Ichiki Kushikino-shi, Kagoshima 896-0053
1-43-7 Mugio, Samuraihama-cho, Kuji-shi, Iwate 028-7801Tel +81-194-75-3551
AdultsSenior high schoolstudents and college
students
Elementary schoolstudents and juniorhigh school students
Admission charge 500 yen700 yen 300 yen
Annual pass 1,000 yen1,400 yen 600 yen
Group admissionrate (for groups of
20 or more)500 yen 300 yen 200 yen
*Admission to the Petroleum Culture Hall and other petroleum stockpiling base related display facilities is free.*There is free admission for pre-school-age children.*There is free admission for holders of a disability certificate and their caregivers.
20
Operations of JOGMEC(Japan Oil, Gas and Metals National Corporation) Encouraging Familiarity with Petroleum Stockpiling
19
Mid-term goals are targets set by the government, which independent administrative institutions are to achieve overthe next 3-5 years. These ensure that all forms of operations are to be performed as efficiently and effectively as pos-sible, as well as making business operations more transparent. Independent administrative institutions devise mid-term plans, which set out future business operations to achieve their mid-term goals.JOGMEC aims to achieve the mid-term goals by creating our mid-term plan organically and utilizing integral tech-
nology and know-how on oil and LP Gas, as well as executing operations efficiently and effectively. This will ensure astable supply of oil and LP Gas. The progress of the mid-term plan is evaluated every year by the "EvaluationCommittee for Independent Administrative Institutions", who review all aspect of business operations.
Mid-term Goals and Mid-term Plan Exhibition facilities
Basic keywords
Operations ofpetroleum and LPG stockpile
departments3． Cooperation with international community
1． Integrated management of national stockpiles2． Support for private stockpiling
Shinkamigoto-cho Oil Stockpiling Memorial Hall 1F1549-6 Aokata-go, Shinkamigoto-cho,Minamimatsuura-gun, Nagasaki 857-4404Tel +81-959-52-2500
Open
Closed
Admission
10:00-18:00
Wednesdays12/29-1/3
Free
Tel +81-996-32-4747
Open
Closed
Admission
9:00-17:00(Last admission: 16:00)
Tuesdays, Wednesdays, 12/30-1/3
Free
Open
Closed
Admission
9:00-18:00 (April-October) 10:00-16:00 (November-March)
Mondays (or the next working day if Monday is a public holiday), January 1, and December 31
●
ShirashimaExhibitionCenter
Pier to Shirashima
●Yoshino Gypsum
Hibikinada BridgeCosmos Road
To Waita
●Fukuoka BankWakamatsu Ward
Office
●Civic HallWakato BridgeTo Futajima Wakamatsu Station
1-108 Hibiki-machi, Wakamatsu-ku,Kitakyushu-shi, Fukuoka 808-0021Tel +81-93-752-1460
Open
Closed
Admission
10:00-16:00(Last admission : 15:30)
Mondays and every 4th Tuesday.(12/29-1/3)
Free
Shirashima Exhibition Center
Energy Discovery Center Kapy Plaza
To Nama
To Narao
To Arikavra
Tsubaki Street●Aokata shrine
Residentialpolice box
Saihi bus Route 384
Bus Street
Societyof Commerceand Industry
●Postoffice
● Kamigoto-cho Fisheries cooperative
●Gymnasium
Tsurido River
Energy Discovery Center Kapy Plaza
Chikabi Exhibition HallGuide board
Japan National PetroleumStockpiling Kushikino Office
Seisatsu Industrial Park
●Ferry shelter
KushikinoNew Port Gotanda River
KushikinoStation
City Hall ●
JRKagoshimaMain LineR
oute 3
Chikabi Exhibition Hall
Moguranpia
Overview of Third Mid-Term Plan (FY2013-2017)
■Strengthen national stockpiling bases based on results of reviews of regional disaster plans in areas hosting stockpiling bases.
■Target completing implementation of key anti-earthquake and anti-tsunami measures at all national stockpiling bases within the period set in the mid-term plan.
■Maintain a structure capable of completing reserve releases at the quantity determined in the shortest time possible.
■Implement programs for switching oil types and for transfers between bases, etc. as part of an emergency response system.
■Conduct appropriate release simulations and exercises in peace times.■Promote cooperation, etc. with the International Energy Agency (IEA) and other agencies responsible for stockpiling in neighboring countries.
■Provide personnel and technical assistance as necessary to implement emergency oil supply coordination plans or emergency LP gas supply coordination plans based on legislation regarding the securing of petroleum stockpiles.
■Enact measures to improve ability to release national stockpiled petroleum, utilizing loans to cooperating stockpiling companies.
■Provide reliable, prompt loans based on safe, efficient use of funds related to loans for private stockpiling.
■Continue to work toward more efficient management of national petroleum stockpiling bases, always on the major premise of ensuring safe operation.
■Continue to promote the appropriate management of operations at national LP gas stockpiling bases, while working to achieve more efficient operations to control costs.
■Provide advice and information that can contribute to lower costs for use of tanks leased from the private sector.
■In the course of more efficient base management, continue efforts to conduct exercises and other initiatives to ensure adequate disaster prevention measures and prevent the spread of damage during disasters.
■Work to gather information needed to enable the stable, efficient procurement of LP gas from global markets, while phasing in LP gas transfer to the bases with adequate regard for safety.
■Based on LP gas market trends, etc., and under government direction, complete transfer of supplies to underground stockpiling bases by the end of the period targeted in the mid-term plan, with the goal of establishing a national LP gas stockpile of 1.5 million tons.
■Contribute to enhancing Japan's energy security by strongly promoting international cooperation in petroleum and LP gas stockpiling, and by exchanging information about policies and technological trends and cooperating with stockpiling agencies in neighboring countries and related agencies in Japan.
■In particular, given the importance of a stronger stockpiling system in the Asian region to Japan's own energy security, we should strongly promote cooperation with and encouragement of the establishment of stockpiling infrastructure among ASEAN nations. At the same time, we will meet regularly with the Korea National Oil Corporation (KNOC) to ensure bilateral cooperation in establishing a structure for stockpiling cooperation among the nations of Asia.
■Smoothly implement a joint stockpiling program with oil producing nations to ensure Japan's energy security in times of emergency.
■Promote research studies with the aim of further increasing efficiency and streamlining of national stockpil-ing operations.
■Work toward harmony with regional communities by exchanging information with relevant agencies among local public institutions, and by fostering community exchanges and cooperation.
Fundamental Enhancement of Risk Response Capabilities
Maintain a balance between safe administration and efficient operation of the national stockpiling system, and establish a system for national stockpiling of LP gas.
Enhance Japan's energy security through promotion of international cooperation, etc.
1
2
3
Kuji Bay
Underground Rock Cavern Tank
Kuji National Petroleum Stockpile Bases
Moguranpia
Hanzaki Fishing Port
JR Hachinohe Line
To HachinoheRoute 45
To NinoheRoute 395
Natsui River
Kuji River
Route 45 Kuji Road Rikuchu-Natsui
Station
Nagasakibana Park
21803 Nomoto, Ichiki Kushikino-shi, Kagoshima 896-0053
1-43-7 Mugio, Samuraihama-cho, Kuji-shi, Iwate 028-7801Tel +81-194-75-3551
A
A
A
Q&A on Petroleum stockpiling
21
Q1 Will petroleum that has been stored for too long turn bad?
Crude oil has very complex compounds of carbon (C) and hydrogen (H).In addition, it contains moisture, sulfur, wax, and very small amounts ofmetal. We regularly analyze crude oil components in oil that is stored forlong periods. We believe that there will be no significant change in thesecomponents over long periods, therefore oil should not turn bad if storedfor too long. Some oil has been stored for more than 20 years already.
OK for more than 20 years
Q2
Q3
The people
National stockpiled petroleum may be released when there is a serious supply disruption due to international events, which adversely effect Japan's economy and the well - being of Japanese citizens. For example, if there is a dispute in the Middle East (which supplies the majority of Japan's oil imports) which prevents oil being exported to Japan for long periods, the national stockpiled petroleum may be released to the oil market in Japan. With changes in legislation based on lessons learned from the Great East Japan Earthquake, it is possible that stockpiles may be released to speci-fied regions during a disaster when supply shortages occur.
JOGMEC works on a daily basis to ensure that a system is in place for releasing petroleum promptly in an emergency. However, the actual number of days it will take before the oil is released varies among National Petroleum Stockpiling Bases. Most bases can respond to a Japanese government directive to release petroleum within a 2-week time-frame.
When may national stockpiled petroleum be released?
How long does it take to release the national stockpiled petroleum after a decision to release it ?
US$
/bbl
The Need for Petroleum Stockpiling
1
1. To secure stable supplies of petroleum (Common issue in the world)On earth there are various sources of energy in addition to oil, such as coal, nuclear energy, natural gas and
hydraulic energy. Energy serves as a driving force for a country's economy, and is vital for its citizens. Therefore,securing a stable energy supply is one of the most important issues for every county.
Since then, the international political situation has periodically affected the supply of oil, such as during the GulfWar in 1990, the terrorist attacks of September 11, 2001, and the Iraq war in 2003.
4. For a more safe, flexible and efficient release
2. Oil and recent global dynamicsIt is said that the price and supply of oil is very susceptible to
the influence of international politics and economics, in contrastto other international commodities. The first oil shock occurredin the autumn of 1973 due to the embargo by Middle Easternoil-producing countries as a result of a war in the Middle East.
The Need for Petroleum Stockpiling
Primary energy supply sources of Japan (2014 fiscal year)
New energy/Geothermal4.7％
Oil 41.3％
Coal25.3％
Natural gas25.3％
Hydro3.4％
(Data source: Agency for Natural Resources and Energy)
Energy Supply Composition for Major Countries
Japan USA U.K.
U.K.
Germany France SouthKorea
Oil dependencyin 2014 43.1％ 36.4％ 35.9％ 36.9％ 39.5％ 21.7％32.4％
China
17.5％
RussianFederation
Japan USA FranceGermany SouthKorea
Oil imports dependencyin 2013 99.7％ 39.1％ 93.5％ 37.9％ 94.7％
Middle East dependencyin 2013 82.45％ 27.07％ 4.23％ 3.66％ 21.08％
99.0％
85.74％
47,820,000kl (product base*2)Crude oil: 48,900,000klProduct: 1,370,000klCrude oil: National petroleum stockpile basesand nationally-leased private tanksProduct: Private tanks
Crude oil: Interior of a sealed tankProduct: Holding in the process of distribution*3
Interior of a private tank loaned to oil-producing nations
Crude oil: Management outsourced by the government to JOGMECProduct: Management outsourced by the government to the private sector
JOGMEC/Private sectorPrivate sector, etc. has an obligation to hold stockpiles
32,880,000kl (product base*2)Crude oil: 16,890,000klProduct: 16,840,000kl
760,000kl (product base*2)Crude oil: 800,000kl
Crude oil: Private tanksProduct: Private tanks
Private leased tanks loaned to oil-producing nations
The oil supply chain, from import of crude oil and other raw materials, to refining and distribution of products
117 days consumption level 80 days consumption level
National stockpiling Private stockpiling
2 days consumption level
Stockpiles held jointly with oil-producing nations
Stock level*1
Inventory
*1: Volume of inventory as of the end of March, 2015 calculated using domestic oil consumption volume based on the Oil Stockpiling Act. *2: One kiloliter of crude oil converted to 0.95 kiloliters of petroleum product (amounts less than 10,000 kiloliters are rounded off).*3: Inventory added to commercial inventory distributed to private sector refineries and depots.
Holding site
Holding format
Management etc
Straits of Hormuz
Strait of Malacca/Singapore
Bashi Channel
Makassar Straits
Selat Lombok
＜Tomakomai-Tobu National Petroleum Stockpiling Base＞ ＜Shibushi National Petroleum Stockpiling Base＞
2
（Courtesy of Mainichi NewspapersCo., Ltd.）
（Courtesy of Mainichi NewspapersCo., Ltd.）
Traffic channel of tankers carrying oil (Oil road to Japan)
3. Petroleum stockpiling
In particular, Japan is the world's fifth largest energy consumer, behind China, the US, Russia, and India (Source: BP Statistical Review of World Energy June 2015). Oil accounts for 41.3% of Japan's energy consumption (as of FY2014), the highest of all, and currently 99.7% of it is imported.
(Data source: BP Statistical Review of World Energy June 2015)
(Data source: IEA Statistics Oil Information 2014)
Change in West Texas Intermediate (WTI) oil prices and International Energy Agency (IEA)
emergency releases of oil between 1983 and 2015.
All-time high in themarket $147.27, July 2008
Aug 1990: During the crisis in the Gulf, the IEA implemented CERMs and devised an emergency plan to release a number of oil stockpiles and control oil demand. Japan released pricate oil reserves(reducing its oil stockpiles from 82 days to 78days.)
Sep 2005: When in damage of Hurricane Katrina which hit USA, the IEA decided coordination response with USA. Japan implemented reduction of the obligation for private oil reserves. (reducing its oil stockpiles from 70 days to 67 days.)
June 2011: Growing tensions in the Mid-East and northern African that began in Tunisia and Egypt spread to civil war in Libya, and because of concerns that this would have a significant impact on the world’s stable supply of oil, the IEA decided to take coordinated action. Japan responded by lowering its private sector obligatory stockpiling requirement by three days.
Growing tensions in the Mid-East and northern Africa.
Recent years have seen the expansion of energy demand in China and India and other emerging nations; damage from Hurricane Katrina in the U.S. in 2005; a chaotic situation in the Mid-East and northern Africa in 2011, including Tunisia, Egypt, and Libya; and the issue of Iran's nuclear program. Japan's energy supply structure is largely dependent on imports, and the stable supply of oil may be greatly affect-ed by the international situation in the future.
Since achieving a target of stockpiling a 90-day supply of import volume annually (about 50 million kl) in 1997, to date government stockpiles have generally maintained this level. As of the end of March 2015, private sector stockpiles were at 80 days (about 33 million kl). Of these, reserves of petroleum products (gasoline, diesel, kerosene and A fuel oil), equivalent to about four days’ demand, are distributed to regional stockpiles nationwide, ensuring swift supply. Since 2009, a joint stockpiling program has also been in place with oil-producing nations such as the UAE and Saudi Arabia, and as of the end of March 2015, a two-day supply (about 800,000 kl) was stocked. To minimize disruption to peoples’ lives during emergencies, a tight risk communication system has been put in place between the nation’s government, JOGMEC and the private sector, and efforts are being promoted to ensure stockpiling operations that are both efficient and flexible.
The purpose of stockpiling petroleum is to secure a stable supply and prevent significant social, economic and political problems in the event of oil supply shortages. Many countries around the world are engaged in combating this issue. As a result, from the fiscal year ended 1972 petroleum stockpiling was started in Japan by the private sector. From the fiscal year ended 1978, the government commenced petroleum stockpiling.
＜Current stage of national and private stockpiling＞
Netherlands Italy
91.7％
19.36％
87.8％
20.84％
