New National Energy Strategy, See The Frustration Of Japanese And Iranian Oil Cooperation

Geopolitical turmoil, intense energy competition and the great change of world energy patterns caused a lot of attention in 21st Century. Energy, especially oil, has always been a fatal problem to Japanese Government.Iran oil is important to Japan. As the world's second largest economy, 15% of Japan's oil imports is from Iran. The Azadegan oil development is extremely important for Japan's efforts to secure stable energy supply. In February 2004, Iran and Japan's Inpex Corp. signed a two billion-dollar agreement for development of Azadegan, the Islamic republic's largest onshore oil field which is estimated to have reserves of 26 billion barrels of crude. But the US request Japan to scrap Azadegan oil deal. In 2006, Japan's Inpex share in Iran's Azadegan oil field drops to 10 percent from 75 percent.Based on the analysis of Japan'New National Energy Strategy, this article attempt to anaylsis the failure of Japan-Iran oil deal. The article summarizes the reasons as follows: the background of Japanese government's effort to develop new energy source; the U.S."carrot and stick"policy and Japan's Inpex wins right to develop Libyan oil fields. At the end of the article is the analysis of the prospects for Japan'petroleum development.