THE PETROLEUM INDUSTRY

Dominion, Volume 3, Issue 912, 3 September 1910, Page 14

THE PETROLEUM INDUSTRY

FURTHER SfATE AID URGED

"With a', view the "works oh : tbe'oiliields'inthe.'i'aranaki district a party of-'from tifteen'to'twenty kgis-] lators .will-pay'a'visiti.to-New] Plymouth during the-.icurront-- ; 'They will praceed: to-day to ■ISltli'am,. where they will -remain: overnight.]! ■ Tormorrow, the- party will, be: driven' to ; Opunako, in -the'chargeV-of Mr; -Dive, M.JP. : On Monday morning they, will]; go on to New Plymouth, to; inspect the oil-bonng . plants;,-:. returning to Wellington.'. on Tuesday afternoon. -': ■ : ] ;', " : Speaking to' a Dominion reporter yes.terday, --Mr.- Okey, M.P. for Taranaki, declared ] that there was ..every .indication of success in connection with the industry/ 'At present the. State was offering a bonus of three, pence per gallon] for 500,000. .gallons ■' of refined. oil. It'was his opinion t-hatVtho, Stateought ito give the'eornpauies , much greater encouragement. : Up to/date only .about 100,000 gallons of: Crude oil.]ha>l been won. In order] to'gain: the. bonus, it would be necessary for a- company to produce -1,300,000 gallons of .iorudc.pil,. , for. it contained 33' per.. cent. ! of. kerosene, besides a large of benzino and lubricating ..0i15... What was desired was a boiius on the crude oil, and it should begin after 100,000. gallons had been .produced... Up till now there was only a,'hand refinery in the district. ' .. ■•"■'. ■ . ' ■ _ In the'course of further remarks Mr. Okey said that it was very' necessary 'that a suitable refinery for.the district would cost about £10,1)00. It was iioptd that the Government would give a subsidy towards the erection of such, ■,■• a .plant.-- At present' the companies were soiling the.crude oil. at-the-- , rate of 4d. per.gallon. If;: however,' the oil were , refined, which would cost 2d. per gallon, it would fetch 18d. per gallon. Only recently the Government had taken 2000 gallons of the crude oil for experimental i purposes on ■ the ■' railways as fuel. There could-be no doubt but that the oil was too good for such n purpose. . Two.of the wells belonging , to the Taranaki Petroleum Company were flowing, whilst another which- had been running was bei-ii" cleaned out. It was rumoured also that the Standard Oil. Company of New Zealand had struck oil in connection with its bore on Oarrington P.oarl, about six miles from the older bores.

. Altogether, added Mr. Ok«y, about £200,000 had so far been sunk in tho industry, which promised to bo a very important one. ■