Japan, U.S. Eye Cooperation in Boosting Alaska Oil Output

Tokyo, March 17 (Jiji Press)–The Japanese and U.S. governments are considering a plan to reach an agreement at a summit on Thursday for cooperation in increasing crude oil production in Alaska, informed sources said Tuesday. As Iran is effectively blocking the Strait of Hormuz, a shipping route for Middle Eastern crude oil, Japan aims to diversify its oil suppliers through cooperation with the United States. Japan relies on the Middle East for more than 90 pct of its crude oil imports. Japanese Prime Minister Sanae Takaichi will visit Washington for four days from Wednesday for talks with President Donald Trump. It will be her first visit to the United States since taking office in October last year. The initiative is being considered as part of Japan’s 550-billion-dollar investment and loan pledge to the United States under their bilateral tariff agreement. The details of the cooperation will be worked out later. The Japanese government seems to believe it can strengthen its own energy security while demonstrating its willingness to cooperate with the United States in expanding Alaskan crude oil exports. Alaskan crude oil comes from the Prudhoe Bay field, which faces the Arctic Ocean. A pipeline runs to the Gulf of Alaska in the south, allowing delivery to Japan via the Pacific Ocean route. It takes about 20 days for Middle Eastern crude oil to reach Japan, compared to about 12 days for Alaskan crude oil. Following U.S.-Israeli strikes, Iran has effectively blocked the passage of ships through the Strait of Hormuz, a key oil transportation hub. There are concerns that the situation will be prolonged as Iran maintains its stance of all-out resistance against the United States and Israel. The Japanese government began releasing its oil reserves Monday to ensure a stable supply of gasoline and oil products. END [Copyright The Jiji Press, Ltd.]