Takao Sanae says Japan may store U.S. oil domestically

Japanese Prime Minister Sanae Takaichi stated during her visit to the United States that Japan may begin storing U.S. oil domestically to diversify energy sources and strengthen energy security.

This week, Japan used a record amount of strategic petroleum reserves to cope with disruptions in Middle Eastern supplies and rising energy prices. Previously, Japan’s oil reserves were about 470 million barrels, enough for 254 days of consumption.

It is currently unclear whether these U.S. oil supplies will be included in Japan’s strategic reserves or if they will be used by the U.S. when needed.

Takaichi told reporters in the U.S. that the two countries also agreed to cooperate in expanding U.S. energy production. About 4% of Japan’s oil demand and 6% of its liquefied natural gas demand come from the U.S.

“I also expressed to President Donald Trump my desire to establish a joint project to store crude oil purchased from the U.S. in Japan,” Takaichi said. “This is based on the understanding that diversifying sources of procurement will help ensure energy stability for Japan and the entire Asia region.”

Takaichi did not disclose specific plans for Japan to store U.S. oil. Japan, along with Saudi Arabia, the UAE, and Kuwait, holds about 13 million barrels of oil reserves as part of its domestic strategic reserves, with priority rights for use.