Japan nuclear uncertainty could increase oil demand

Demand on the oil industry may increase if Japan shuts down its nuclear reactors in the face of safety concerns, it has been revealed.

Following the earthquake and tsunami in March, which resulted in a nuclear crisis, the country's energy policy may be reconsidered.

According to Reuters, Japan is considering scrapping plans to use nuclear power in the future, a U-turn on its policy before the disaster which was to increase energy produced by the technology from 30 per cent to 50 per cent.

If Japan shuts down all of its nuclear reactors, demand for oil and gas in the country would triple, the source reported, putting the struggling oil industry under even greater pressure.

Last week, prime minister Naoto Kan proposed conducting further stress tests on all nuclear power plants across the country.

This move has added to confusion about the future of nuclear in the country, especially as around two-thirds of Japan's reactors are currently inactive.