Japan's withdrawal from one of the world's largest untapped sources of oil, in Azadegan, Iran, shows the country must walk a tightrope to secure stable energy resources while prioritizing the alliance with the United States.
Given the worldwide shortage of easy-to-explore oil fields in areas of political stability, Japan also has no choice but to compete with China and other emerging economies until it finds a viable alternative to crude.
Inpex Holdings Inc., 19 percent of which is owned by the trade minister by title, announced Friday it will scrap its 10 percent concession in the Iranian oil field.