June 2022
Survey of Corporate Attitudes towards soaring crude oil and LNG prices
Soaring resource prices negatively impact over 80% of companies
— Companies foresee prices remaining high for one year and a half —
Introduction
Responding to soaring crude oil and LNG prices has been a pressing and inevitable issue for companies. Demand has increased due to economic recovery after the peak of the COVID-19 pandemic, while crude oil prices are soaring due to the effects of the Russian invasion of Ukraine. On the other hand, a course towards increased fossil fuel production has not been projected in the process of shifting to a carbon-free society.
As the global situation changes, LNG prices are also skyrocketing in the same way. Interest in the Sakhalin-2 project is also uncertain, which can hurt the Japanese economy that relies on imports of energy from overseas.
As the global situation changes, LNG prices are also skyrocketing in the same way. Interest in the Sakhalin-2 project is also uncertain, which can hurt the Japanese economy that relies on imports of energy from overseas.
*Survey period: June 17 – June 30, 2022, Companies Surveyed: 25,405, Valid Responses: 11,337 (Response Rate: 44.6%).
*Details of this survey can be found on the dedicated Economic Trend Survey HP (http://www.tdb-di.com).
Primary points of survey results(summary)
- 1 In terms of the impact of soaring crude oil and LNG prices on management, 48.2% of companies responded that “there is a direct, negative impact”. Looking at those companies responding that there is a direct, negative impact by industry, ‘transport, warehousing’ (79.3%) and ‘agriculture, forestry and fisheries’ (69.4%) ranked highest.
- 2 With respect to measures currently implemented against soaring crude oil and LNG prices, “power and money-savings” (49.5%) ranked top, followed by “passing an increase in energy cost to selling prices” (21.8%). As for measures if price levels remain high in the future, “passing an increase in energy cost to selling prices” (29.6%) showed the highest percentage of responses.
- 3 With respect to how long companies assume the current high levels will last, “for about one year” was the highest percentage of responses for both crude oil (33.5%) and LNG (30.8%). Companies that think that the high levels will continue for more than one year, including those responding “for about one year”, reached around 70%. The average period was 17.7 months for crude oil, and 18.3 months for LNG.