The energy problem is one of the most serious problems facing Japan. The greater part of Japan’s energy consumption depends on oil, but its domestic production of oil is practically zero. It is well known that before the oil crisis in 1973 Japan enjoyed a high rate of economic growth; the average growth rate of GNP during the 1960s was about 10 percent per year. After the oil crisis the growth rate of GNP has strikingly slowed down to an average of about four percent. In addition, the Japanese inflation rate was relatively moderate before the oil crisis; the average rate of change of the wholesale price index was about one percent per year. Since the oil crisis this has risen to about six percent per year.