Judging Japan's Crisis Response Capability by Reducing Crude Oil Processing Volume

One of the media's inconspicuous news attracted attention: Japanese oil refining companies have cut their crude oil processing volume. Japan’s largest oil refiner, Nippon Oil Corporation, cut its crude oil processing volume for the fifth consecutive month in November; the second largest oil refiner, Idemitsu Kosan Co., Ltd. will cut its crude oil processing volume by 14% from the fourth quarter; the third largest oil refinery The company Showa Shell Petroleum cut its processing volume of crude oil by 4.4% from the fourth quarter.
Analysts believe that the reason why Japanese oil refining companies have reduced crude oil processing volume is because the demand for petroleum products continues to weaken: high international oil prices, weakening the demand for gasoline and aviation fuel, so that Japan's oil demand significantly reduced; the financial crisis caused by Japan's oil consumption A general decline is expected, resulting in a substantial reduction in oil consumption.
However, I am more inclined to believe that Japanese oil refining companies have reduced the amount of crude oil processing, and it is even Japan’s initiative to respond to the economic downturn.
The US subprime mortgage crisis has triggered international financial turmoil. Credit tightening has affected the real economy. Japan and the United States and European developed countries have cooled their economies, resulting in a quarterly recession and a significant increase in downside risks. In particular, Japan is implementing an export-oriented economic development model with a strong dependence on external demand. In 2007, Japan’s economy grew by 2%, and the contribution rate of external demand such as trade and overseas capital income reached 0.62%. The role of external demand cannot be taken lightly. The reduction in external demand caused by the financial crisis and the shrinking of exports will certainly have a reverse effect on the Japanese economy. The new recession is likely to be caused by it. Moreover, the Japanese economy’s direct and indirect comprehensive reliance on the U.S. market is as high as 20% to 28%, and the U.S. economic growth is slowing down. The negative impact on the Japanese economy cannot be discounted. Although the recovery momentum of the Japanese economy can still be maintained, the prospects of the financial crisis are uncertain, and the uncertainty is rising. Japan's economic growth is hardly optimistic. This will inevitably lead to the adjustment of the original flexible Japanese energy strategy.
From another perspective, the sharp reduction in the volume of petroleum processing by Japanese oil companies also shows that Japan’s energy strategy has a stronger ability to respond. Japan is an extremely energy-poor country. The issue of energy security has always been Japan's "fabric." As one of the world’s largest oil consumers, Japan’s oil consumption is more than 98% imported. Dealing with the oil shortage crisis has always been a top priority for Japan’s energy strategy. In particular, after two oil crises in the last century, Japan proposed a "technology-based nation-building" strategy that shifts heavy chemical industrial products that consume large amounts of resources and energy to resource-based energy-saving knowledge-intensive products, and focuses on the development of automobile and electromechanical processing and assembly machinery. The industry has gradually adjusted out the high-energy-consuming industries such as petroleum, chemical, and coal as well as labor-intensive industries such as textile and light industry. As a result, companies generally focus on saving energy and reducing consumption, and are sensitive to changes in energy supply and demand. Market-oriented oil companies adjust their production and supply at any time according to the market, and they also show stronger resilience.
It can be argued that the current reduction of oil consumption by Japan across the country is Japan's adaptive adjustment in the face of the negative impact of the financial crisis. Japan's oil companies have drastically reduced the amount of processed crude oil and given us enlightenment, which also prompted us to reflect.

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