Japan, U.S. Eye Stockpiling Alaskan Oil in Japan

The Yomiuri Shimbun

15:18 JST, March 18, 2026

The Japanese and U.S. governments have entered the final stages of negotiations to increase production of U.S. crude oil through Japanese investment and to jointly stockpile the additional output in Japan. An agreement is expected to be reached in conjunction with the summit meeting between Prime Minister Sanae Takaichi and U.S. President Donald Trump scheduled on Thursday in Washington, according to government sources.

Amid soaring crude oil prices following Iran’s de facto blockade of the Strait of Hormuz, the move aims to stabilize the crude oil price and diversify Japan’s oil supply sources.

The investment to increase production will be positioned as the part of the $550 billion (approximately ¥87 trillion) Japanese investment in the United States that was agreed to in tariff negotiations. While details, such as the amount of investment, will be determined later, an oil field in Alaska is considered a leading candidate for the investment. Shale oil fields in other parts the United States are also being considered.

Japan relies on the Middle East for about 90% of its crude oil supply. Crude oil from Alaska need only cross the Pacific Ocean to reach Japan, making its transit time nearly a week shorter than that for oil from the Middle East. “It will be significant for Japan’s economic security,” a senior government official said.

For the U.S. side, securing markets for its Alaskan oil is a pressing issue. The amount of crude oil Alaska produces is roughly equivalent to more than 10% of Japan’s annual consumption. Currently, most of it is shipped within the United States.

Following the “shale revolution” of the 2000s, the U.S. has become the world’s largest oil producer. The Trump administration has pushed for expanding oil production further. For the United States, securing stable demand for stockpiling in Japan could boost its development.

Stockpiling facilities in Japan could also become a supply hub for Asian countries by if the oil can be sold onward. Existing and unused stockpiling facilities are being considered for storing the oil in Japan.

The two governments aim to secure a stable energy supply between Japan and the United States allowing the stockpiled oil to be released to Japan in case of emergency.

Japan and the U.S. are increasingly concerned that the surging crude oil prices are beginning to have a negative impact on their domestic economies as the situation in Middle East worsens.