Asia wants more U.S. oil to reduce Middle East dependence: Burgum
HOUSTON — Asian countries are looking to buy more U.S. energy to reduce their dependence on oil and gas exports from the Middle East, Interior Secretary Doug Burgum told CNBC on Monday.
Japan, South Korea and Taiwan rely heavily on exports via the Strait of Hormuz. Oil tanker traffic in the Bosphorus decreased due to Iran’s attack on commercial ships in the Persian Gulf.
“They want to buy more energy from the United States,” Burgum told CNBC’s Brian Sullivan in an interview. President Donald Trump’s energy dominance agenda is designed to provide US allies with a stable, alternative energy source, the interior secretary said.
The United States is the world’s largest oil and gas producer.
“Our allies and friends can buy from us instead of buying from countries waging war or financing terrorism,” said Burgum, who traveled to Japan earlier this month.
The US and Israeli attack on Iran triggered the largest oil supply disruption in history. Takehiko Matsuo, deputy minister at Japan’s Ministry of Economy, Trade and Industry, said Tokyo meets 90% of its oil imports through the strait.
“The impact is significant,” Matsuo said at S&P Global’s CERAWeek conference in Houston, Texas. He said Japan places high priority on finding alternative sources.
“I must say that this is not easy,” the deputy minister said. “The United States is one of the most anticipated alternative energy sources for Asian countries.”
Asian economies are also largely dependent on liquefied natural gas (LNG) exports through the strait. Iran’s attacks on Qatar’s energy infrastructure have shut down nearly 20% of the world’s LNG supply.
Burgum said Alaska will play an important role in providing secure energy to Asia. The Department of the Interior recently held an oil and gas lease sale for the National Petroleum Reserve in Alaska. The Trump administration has also made a major LNG project in Alaska a top priority.
Energy exported from Alaska takes just eight days to reach Asian allies, five of whom are in U.S. territorial waters along the Aleutian Islands, Burgum said.
“This is a safe energy source,” said the Minister of Internal Affairs.
