経済｜出光興産、製油所閉鎖撤回へ / Economy | Idemitsu Kosan to withdraw closure of refinery.

Summary

Idemitsu Kosan has announced its decision to withdraw the goal of reducing its oil refining capacity by 300,000 barrels per day by 2030.

This change is prompted by the slower-than-expected adoption of electric vehicles (EVs) and a setback in the progress of decarbonization. In March, the company plans to unveil a new medium-term management plan, providing further details at that time. The outlook for Idemitsu’s refinery closures is also expected to change, drawing attention to the implications for energy policy.

Dialogue

This dialogue is fictional and based on the article.

Log: It seems that Idemitsu Kosan is going to reverse its decision to close the refinery. They say it’s because the decarbonization efforts have been slow.
Chako: Oh, really? So that means there’s still a strong demand for oil?
Log: Yeah, that’s right. The adoption of EVs has been slower than expected, so we can expect the demand for oil to continue.
Navi: Generally speaking, a slowdown in the progress of decarbonization could impact the oil market.
Chako: I see. So if electric vehicles become more widespread, the demand for oil might decrease?
Log: That’s quite possible, but for now, we still have a long way to go.

Admin’s Note

The news about Idemitsu Kosan’s decision to reverse the closure of its oil refinery seems to go against the trend of decarbonization, but it is interesting to note that it responds to realistic market movements. In particular, the observation that the adoption of electric vehicles is slower than expected is an important perspective to consider for future energy policies. I look forward to seeing what direction will be indicated in their upcoming new mid-term management plan.