Japan’s first test production of shale oil will begin as early as next year, raising hopes that total reserves could account for nearly 10 percent of the nation’s annual consumption. Japan Petroleum Exploration Co. will conduct test production at the Ayukawa oil and gas field in Yurihonjo, Akita Prefecture, with Japan Oil, Gas and Metals National Corp., sources said. The reserve is estimated to be about 5 million barrels. Shale oil will be sold in Japan once production gets on track. The company hopes to develop other prospective shale oil fields in Akita Prefecture within five years. The maximum combined reserves are expected to be 100 million barrels, a little less than 10 percent of Japan’s annual oil consumption, the sources said. Japan Petroleum Exploration has been producing oil and natural gas at the Ayukawa field since 1995. It was known that rock formations close to oil-producing layers contained oil, but mining technologies were not established. Large-scale mining of shale oil recently started in the United States. The company has surveyed the rock formations in detail and confirmed that high-quality shale oil can be produced. Test production is expected to be conducted at a depth of 1,000 to 1,500 meters. The company is considering expanding exploration to other areas in Japan if production in Akita Prefecture goes smoothly. Japan has limited oil and natural gas reserves and depends on imports for most of its consumption. If shale oil production begins in many areas in Japan, its self-sufficiency ratio will rise.

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