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Oil isn't used to make electricity. The major options are nat gas and coal. This disaster will likely drive DOWN oil prices since Japan will likely need less o
by MichaelApproved 16y ago
Oil isn't used to make electricity. The major options are nat gas and coal.
This disaster will likely drive DOWN oil prices since Japan will likely need less of it in the short term.
- stevefarnworth 16y agoI'm sorry? Oil isn't used to make electricity Oil is used in some types of power station, and the markets are already reacting to not only the increased demand, but due to the infrastructure damage in the north of the country, the fact it'll be harder than ever to get it delivered. http://online.wsj.com/article/BT-CO-20110312-700945.html http://online.wsj.com/article/BT-CO-20110312-700945.html
- MichaelApproved 16y agoI initially assumed that Japans energy gneration profile was similar to the US where it's almost all coal and LNG which is why I didn't think it would impact the oil market as much. A bit of googling gave me this article which states that oil is actually more popular than coal. http://www.fepc.or.jp/english/energy_electricity/electric_power_sources/index.html http://www.fepc.or.jp/english/energy_electricity/electric_po... I still wonder if their demand will go up since a lot of the infrastructure is damaged and unusable. But if it does go up, chances are they'll need more fuel oil.
- wisty 16y agoSmall generators, like the kinds you use for emergency backup power, often run on oil.
- MichaelApproved 16y agoMy point was regarding large scale power plants that would have a major affect on the market. Still, it turns out that oil based power plants are far more popular than I knew earlier.
- gonzo 16y agomaybe not in Japan, but here in Hawaii, oil is used to make electricity.