Japan Petroleum Exploration Co. announced that it has started the first commercial production of shale oil in the country, namely in Akita prefecture in northern Japan.
The initial production in the Ayukawa oil and gas field is expected to post 220 barrels a day. Japex is supposed to start drilling in Fukumezama oil field in late May.
To date, Japan’s total oil production is about 77,000 barrels per day, while Japex accounts for less than one-quarter of the total volume.
Owing to gradual elimination of nuclear power plants after the Fukushima disaster, Japan is seeking for other energy sources. In the first place, it is oil and gas. However, the domestic output does not satisfy energy needs of the country at all, thus the Land of the Rising Sun has to import the fuel from abroad.
The shale oil reserves in the region are estimated at 100 million barrels that is equal to about 8 percent of Japan’s annual oil consumption. The technological change made the production of this type of hydrocarbon possible and profitable thus whipping up interest in shale oil. Besides, high-end shale oil production seems rather cost-effective amid the steep world crude oil prices.
