http://knowledge.wharton.upenn.edu/article.cfm?articleid=1615: "Japan Strives to Balance Energy Needs with World Politics
Published: November 29, 2006 in Knowledge@Wharton

As much of the world grapples with higher oil prices, no industrial country is as vulnerable to rising energy costs as Japan. Almost entirely dependent on foreign oil, Japan has focused on conservation and alternative fuels, but recently has begun to push hard to get new access to overseas oil.
Wharton faculty and energy analysts say Japan's new posture has led to tensions with other countries, including the United States, forcing Japan to maintain a delicate balance between geopolitics and its energy needs. 'It seems that Japan has become more aggressive in the past year when it comes to seeking new sources of oil,' says Wharton finance professor Ayako Yasuda.
Energy demand in Japan is not expected to increase dramatically due to an aging population and changing patterns of industrial production. However, rising competition for global resources from China and other emerging economies has put new pressure on Japan and other industrialized countries to lock up energy resources.
Japan's new focus on developing overseas oil supplies is part of an ambitious national energy policy, unveiled this spring, that sets specific targets to reduce dependence on foreign oil while increasing nuclear power generation and energy conservation.
The policy sets a specific target to reduce the amount of oil as a share of overall energy consumption from 50% now to 40% by 2030. The government also wants to reduce the percentage of oil used in the transportation sector from nearly 100% today to 80%. In addition, the policy aims to increase the amount of oil developed and imported by Japanese companies from 15% to 40% by 2030.
Seeking Deals Abroa"