DUBAI - Japan, the UAE oil largest consumer, is vying for more energy and oil supply from their providers to meet its substantial demand for power consumption, especially in the rapidly growing industrial sector, according to a source close to the arrangements.
Speaking to Khaleej Times, yesterday a Japanese oil company source involved in the deliberation said, "UAE supplies Japan with more than 500,000 b/d barrels a day which is the largest amount of crude UAE exports to one country."
He added that UAE is the main supplier of Japan and a number of Far East countries including South Korea , India and China. "We are studying a range of new supply offers from the Gulf oil producing states, which will be soon finalised. This will not have any effect on our talks with the UAE suppliers," he said.
"We are very much aware of the fact that our demand might not be immediately answered because of the Opec quota system imposed on the oil producing countries, yet we are upbeat about the outcome. The only problem we might face is that, UAE exports about 90 per cent of its 2,3 million b/a while only 10 per cent is reserved for domestic demand. The UAE is having massive capacity to produce up to 3 million/a now if it is not for the Opec restriction.They said they will be allowed to produce more than 3 b/a in 2006," he added. Asked if the Japanese economy is badly affected by the oil price steep increase, the source said, "The sharp increase in oil price recently has definitely threw shadow on the entire economic activities in Japan and other industrial blocks world wide. The impact of the oil price will be visible for sometimes on the face of the global economy. "
"Most of the Adnoc's deals are long term agreements, hence it is sometimes very difficult to response to immediate and emergency needs of buyers," said the source.
"We are very critical in energy supply, though Japan is utilising to the maximum all available energy sources including solar enery. The reason is that there is a rapid strong expansion in industry sector which contributes more than 56 per cent to the GDP of Japan." Declined to speak about the volume of crude they need to cover their urgent needs, other source said, 4 million tons is the immediate requirement. The shortage in oil and energy in Japan has recently driven the Government to start exploration efforts in the East China Sea the matter that caused political row between China and Japan said the source. Talks between the two countries accusing each other of crossing territories is expected to take place next week. If solved this will help Japan to increase its small oil production and cover the immediate and future energy needs.
BY SALAH ELDIN ELTAYEB
© Khaleej Times 2004
