http://www.reuters.com/article/2011/07/15/us-japan-power-analysis-idUSTRE76E1ZF20110715">Japan power sector oil demand may triple(Reuters) - Japan's demand for crude and oil products to fuel power plants could triple if the country shuts all its nuclear reactors due to growing public safety concerns after the March earthquake and tsunami.
The country's energy policy was left in tatters after the quake caused by the worst nuclear accident in 25 years. Japan had planned to increase nuclear power supply to meet 50 percent of demand, from 30 percent before the quake. Now, Prime Minister Naoto Kan is talking about a nuclear-free future.
"In the short term, they would definitely try to import oil and gas, or even coal where they have a coal plant. But that is still not going to satisfy the need and I'm sure there's going to be shortfalls and energy crisis."
Morgan Stanley's assessment is for a total of 540,000 bpd oil demand for power between June and December in the worst case scenario if all reactors are shut compared to an average of 192,000 bpd in 2010. Total demand would be higher than OPEC-member Ecuador's crude output of about 500,000 bpd.
If Japan shuts down its nukes and can't fill the gap with fossil fuels, they will become the poster child for the approach I would prefer to see the world take: no nukes, no oil, no coal, no gas.