The Insuring State: Japanese Oil Import Security and the Middle East

Abstract

This article investigates Japanese approaches to managing oil import security in the period 1970Á2005 by developing a framework that integrates portfolio and inducement approaches to managing import security. It argues that Japan is an insuring state and, in the context of continuing asymmetric dependence, seeks to ensure its security not only through portfolio strategies that aim to reduce systemic and specific risks, but also through political and economic inducements that reinforce those portfolio strategies. Empirical evidence suggests that these strategies have enhanced Japan's insurance cover against oil unanticipated supply disruptions and has enhanced its relative security over the period. The Japanese case suggests the importance of exploring portfolio strategies and structures as power in addition to other forms of non-military power, such as economic aid and diplomacy, in understanding international economic security.

Japan and the Middle East: An Overview

“…Thus, much of the literature explored how the MOFA maintained a balance between economic security relations with the Middle East and its military security relations with the United States. This “balancing act” has been explained through the lenses of domestic political structure (Inoguchi, 1991; Pekkanen & Krauss, 2005), resource diplomacy (Lesbirel, 2013; Yoshitsu, 1984), soft versus hard policy instruments (Miyagi, 2011, 2014; Rynhold, 2002), and Japanese role in collective self-defense (George, 1993, Miyagi, 2014).…”

Implications of China’s Belt and Road Initiative for Japan’s Involvement in the Middle East

“…By the late 1980s, this commodity constituted under 70 percent of its imported oil, and by the early 2000s, the Middle East’s share of Japan’s oil sources reached about 85 percent (Agency for Natural Resources and Energy, 2010). That level of dependence can be expected to remain high in the foreseeable future and the Middle East will “remain a crucial player in Japan’s energy policy for quite some time to come …” (Lesbirel, 2013, pp. 41–42).…”

Designing a resilient oil supply network with an intelligent solution algorithm

“…For instance, Yadlin and Guzansky (2012) and Manole et al (2013) mention that major portion of energy containers (oil and gas) are passing through the riskiest regions of the world; at the same time energy facilities are one of terrorists' main targets. Lesbirel (2013) states that we have learnt from past that political and social attributes of countries involved in global oil supply network must be considered, whether a country is an oil supplier or an intermediate in this network. Also Clarke et al (2012) claim that regional, political and social factors play an important role in maintaining energy supply security.…”

“…On one hand, Lesbirel (2013) mentions that security is the most important concern of nations, on the other hand Pasqualetti and Sovacool (2012) claim that security of nations strongly relies on security of their energy procurement. Also according to Berle et al (2013), World Economic Forum (WEF) has introduced energy security as one of the major emergent global risks which results in social vulnerabilities.…”

“…Manole et al (2013) believe that the effects of a damage to a critical energy infrastructure are not only restricted to one country or region, but also it harms the international economy. International Energy Agency, IEA (2007), points out oil import dependency as one of the primary threats for energy security of nations; so Lesbirel (2013) warns that security of oil importing countries is threatened by disruptions in oil market which might lead to economic and social disasters. Unfortunately this peril is inevitable in short term and mid-term and decision makers in energy and security sector must consider the oil supply security as their first priority.…”