Japan will invest to increase crude oil production in Alaska as part of the $550 billion (87 trillion yen) tariff agreement with the United States and also stockpile the reserves produced in the U.S. state.
Sources said Prime Minister Sanae Takaichi and U.S. President Donald Trump will announce the plan when they meet in Washington, D.C., on March 19.
Japan will purchase the additional crude oil produced in Alaska as part of its effort to reduce its heavy dependence on Middle East oil. Currently about 90 percent of Japan’s crude oil imports comes from that region.
The worsening situation in the Middle East has affected crude oil shipments through the Strait of Hormuz, which has been effectively blockaded by Iran. Subsequently, the volume of crude oil reaching Japan will decrease greatly from around March 20, according to the economy ministry.
