What Taiyo Is Saying
Taiyo Oil's chief, Takahiro Yamamoto, does not want Japan overpaying for oil in normal times. "I have some concerns regarding the excessive push to diversify crude procurement, which imposes significant cost on society in normal times," he said in Tokyo on Friday. His preferred mix is unambiguous: "It's better to rely on the Middle East for more than 90% of Japan's needs." He laid out a simple playbook - buy as economically as possible in peacetime, and keep the flexibility to line up alternatives when trouble hits.
How Conflict Reshaped Flows
Yamamoto's view is that resilience and dependency can coexist. "The ideal state for energy is not a system that fails because of dependency in times of a crisis, but one where we remain secure despite that dependency," he said. He pointed to the industry's response during the war, noting refiners swapped in replacement barrels in about three months, which showed Japan could weather shocks without permanently shifting away from Middle Eastern crude.
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The Policy Backdrop
As the conflict dragged on, Prime Minister Sanae Takaichi's administration moved to widen supply sources and strengthen alternate import routes to improve energy security, even though that would raise costs. Yamamoto's comments push against making that diversification a standing policy if it means consistently paying more.
Where Taiyo Stands Now
Before the war, Taiyo sourced about 40% of its crude from the Middle East, well below larger domestic peers. The company - which runs a 138,000 barrel a day refinery on the island of Shikoku - has since reduced that to about 15% by increasing shipments from the US and Argentina. Yamamoto expects the company's Middle East share to return to 40% once conditions normalize.
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