In February 2000, Japan began the new century on a sour note when it lost its rights to the Khafji oil field in the Saudi-Kuwaiti neutral zone. Japan’s Arabian Oil Company had held exploration rights in that zone since 1957, and the loss of such a long-term investment was keenly felt.

The problem was that Japan, which is among the world’s most dependent countries on Arab and Iranian oil, had lost all significant presence in the upstream oil market. With the increasing rivalry for energy resources between Japan and China, as well as other countries, Japanese government and business leaders are making a strong effort to gain a toehold in the region.

Japan Focus