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 plummeted as Iran attacks commercial ships in the Persian Gulf.
“They want to buy more energy from the United States,” Burgum said in an interview with CNBC’s Brian Sullivan. President Donald Trump’s energy dominance policy is aimed at providing stable alternative energy supplies to America’s allies, the Interior Secretary said.
The United States is the world’s largest producer of oil and gas.
“We don’t have to buy from countries that have waged wars or financed terrorism, but our allies and friends can buy from us,” said Burgum, who visited Japan earlier this month.
The US and Israeli attack on Iran caused the largest oil supply disruption in history. Takehiko Matsuo, vice-minister of the Ministry of Economy, Trade and Industry, said Tokyo relies on the strait for 90% of its oil imports.
“The impact will be huge,” Matsuo said at S&P Global’s CERAWeek conference held here. He said Japan is prioritizing finding alternative sources of supply.
“I have to say it’s not easy,” the deputy minister said. “The United States is one of the most promising alternative energy sources for Asian countries.”
Asian economies are also heavily dependent on liquefied natural gas (LNG) exports through the strait. Iran’s attack on Qatar’s energy infrastructure has shut down about 20% of global LNG supplies.
Burgum said Alaska will play an important role in providing safe 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 allies in Asia, Burgum said. Five days of the transit route are in U.S. territorial waters along the Aleutian Islands, he said.
“This is a secure supply of energy,” the Home Secretary said.
