HOUSTON — Asian countries want 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 through the Strait of Hormuz. Oil tanker traffic through the strait has plunged as Iran attacks commercial ships in the Persian Gulf.
“They want to buy more energy from the U.S.,” Burgum told CNBC’s Brian Sullivan in an interview. President Donald Trump’s energy dominance agenda is designed to provide U.S. allies with a stable, alternative supply of energy, the Interior secretary said.
The U.S. is the largest oil and gas producer in the world.
“Our allies and our friends can buy from us as opposed to having to buy from countries that either wage war or fund terrorism,” said Burgum, who travelled to Japan earlier this month.
The U.S. and Israeli attack on Iran has triggered the largest oil supply disruption in history. Tokyo relies on the strait for 90% of its oil imports, said Takehiko Matsuo, a vice minister at Japan’s Ministry of Economy, Trade and Industry.
“The impact is significant,” Matsuo said at S&P Global’s CERAWeek conference in Houston, Texas. Japan has placed a high priority on finding alternative supplies, he said.
“I must say it’s not easy,” the vice minister said. “The United States is one of the most anticipated alternative energy source for Asian countries.”
Asian economies are also heavily dependent on liquefied natural gas (LNG) exports through the strait. Iranian attacks on Qatar’s energy infrastructure has shut down about 20% of the world’s LNG supplies.
Alaska will play a major role in providing Asia with secure energy, Burgum said. The Interior Department recently held an oil and gas lease sale for the National Petroleum Reserve in Alaska. The Trump administration has also made an massive LNG project in Alaska a top priority.
Energy exported from Alaska takes just eight days to reach Asian allies, five of which are in U.S. territorial waters along the Aleutian Island, Burgum said.
“It’s a secure supply of energy,” the interior secretary said.