This paper reports that on June 5, 1990, the Advisory Committee for Energy to the Minister of International Trade and Industry submitted a report (the Outlook) entitled The Challenge of New Trends in Energy. Quite obviously, it is difficult to define future policy by only a single set of data in the current dynamic international energy situation. That is to say, the Outlook is a form of policy intended as a reference. The Outlook has been made public to educate people as to how critical the energy issue has now become. Three major policy agendas are set forth in the Outlook: Effective use of energy, Appropriate energy supplies or the best mix, and Active promotion of international cooperation in all energy areas. The concept of energy conservation must be understood in a positive sense, whereby it is seen as the creation of energy in that energy conserved today can be saved for the use in the future. Since the oil crisis in 1973, oil dependence in Japan has decreased from 77.6% to 57.3%. In the meantime, it has become difficult to maintain traditional means of supply, due to the intensified antinuclear movement and concern over CO{sub 2} emissions. Therefore, themore » so-called new energies (solar, wind, methanol fuel, etc.) must be introduced to the greatest degree possible. From a practical point of view, appropriate energy supply sources need to be established as the best mix through a combination of conventional, large scale, reliable and economical energy sources such as nuclear, LNG, coal, and hydroelectric power.« less