Instability in the Middle East has driven up gas prices and left naphtha in short supply, impacting Japanese society at large. This episode of Toyota Times Business takes a deep dive into the lessons learned from the energy crisis.

Joining the discussion are automotive journalist Naoto Ikeda; Sumiko Takeuchi, director and principal researcher at the International Environment and Economy Institute and professor at Tohoku University; and Toyota Executive Vice President Hiroki Nakajima.

With the Strait of Hormuz effectively closed, crude oil from the Middle East has become harder to secure, a situation Takeuchi describes as “what we always said must never happen has now happened.”

This has impacted the auto industry as well, as fuel costs for shipping Toyota cars in Japan and abroad have soared, driving up logistics costs. Toyota has responded by reviewing its export shipping routes. Meanwhile, Japan has also rapidly shifted its crude oil procurement, moving from a time when 93% came from the Middle East to sourcing roughly half from the United States.

Each guest offered a different perspective on how Japan should address energy challenges going forward. Takeuchi pointed to electrification, including the wider adoption of battery electric vehicles (BEVs), as a path to both climate action and stronger energy security.

Ikeda focused on E20 (gasoline blended with 20% plant-derived bioethanol), outlining a path to carbon neutrality that leverages the roughly 83 million registered vehicles in Japan.

Vice President Nakajima advocated for building a circular society. He stressed the importance of a system that combines a variety of technologies, from biofuels and hydrogen to biogas derived from cattle manure, while bringing together those who produce, transport, and use energy.

How should Japan, a country with limited natural resources, shape its future? Watch as three distinct perspectives intersect in this Toyota Times Business discussion.