Taiyo Oil CEO Urges Japan to Maintain Middle East Oil Reliance

Takahiro Yamamoto, CEO of Taiyo Oil, urged the Japanese government to maintain its reliance on Middle Eastern crude oil for over 90% of its needs. He argued that this procurement strategy is the most cost-effective approach during peacetime and that excessive diversification imposes unnecessary costs on society.

This position challenges the diversification drive led by Prime Minister Sanae Takaichi, whose administration sought to broaden supply sources and alternative routes following disruptions caused by the U.S.-Iran war and threats to the Strait of Hormuz. Yamamoto suggested the industry demonstrated resilience during the conflict by replacing lost barrels within three months.

While Taiyo Oil reduced its Middle East exposure from 40% to 15% during the war by increasing imports from the United States and Argentina, the company intends to return to its 40% Middle East supply level once conditions normalize.