Oil and gas give context to meeting of Obama and Abe

Feb. 22, 2013
Oil and gas provided thick context to a meeting at the White House Feb. 22 between Japanese Prime Minister Shinzo Abe and US President Barack Obama.

Oil and gas provided thick context to a meeting at the White House Feb. 22 between Japanese Prime Minister Shinzo Abe and US President Barack Obama.

Fluid hydrocarbons figured in two of three headline topics of discussion.

Abe was known to want to discuss Japan’s inclusion in the Trans-Pacific Partnership, a trade agreement involving the US and several Southeast Asian countries.

US automakers want access to the Japanese vehicle market to be a condition of any trade pact with the country.

A trade agreement would facilitate approval by the Department of Energy of LNG export projects targeting sales to Japanese companies.

Already the world’s largest importer of LNG, Japan needs more gas and coal after the Fukushima Daiichi disaster forced the closure of most Japanese nuclear plants.

Last month, two Japanese utilities wrote DOE a letter expressing support of US exports of LNG. In his meeting with Obama, Abe was expected to make the same argument.

For Obama, the issue isn’t easy. A coalition of US manufacturers fearful of an increase in natural gas prices is campaigning against LNG exports.

Obama and Abe also were sure to discuss Japan’s territorial dispute with China over five small, uninhabited islands and three barren rocks in the East China Sea that China calls Daioyu and Japan calls Senkaku.

Disagreement over sovereignty of the islands has limited exploration in the East China Sea. An effort by Japan and China to explore four areas jointly in 2008 collapsed in 2009 with Japan accusing China of developing one of the areas alone.

The US has tried to remain neutral in this and other territorial disputes in the region, which inevitably involves Taiwan as well. With tension rising between Japan and China, that issue will be no easier for Obama than the trade agreement.

On the headline topic not involving oil and gas, though, he and Abe were sure to find conversation easier. Few national leaders outside Pyonyang welcomed North Korea’s nuclear weapons test of Feb. 12.

(Online Feb. 22, 2013; author’s e-mail: [email protected])