OIL-BORING PROBLEM.

Dominion, Volume 7, Issue 1986, 17 February 1914, Page 8

OIL-BORING PROBLEM.

A WATER MENACE,

GOVERNMENT ASKED TO

REGULATE.

State regulation of oil-boring, in tho interests of people who have invwted capital in tho industry, was • advocated by a deputation which interviewed tho Hon. W. Eraser (Minister of Mines) yesterday, j Its members . were: — Messrs. E. Griffiths, G; Mackay, and G.'L. Gunn (Taranaki Oil Lands Acquisition Development Co.) Mr. CM. Oliver (United Oil Co.), Mr. A. T. Bate and Dr. Prendergast Knight (Taranaki and East Coast Oil Co.), Hr. T. S. Weston (Phoenix Oil Co.), and Mr. Fedorovicz (expert adviser to the com-, panies. , '

7 Mr. Griffiths said that the deputation represented live oil companies, winch had so far had a distinctly active career, and had put in good solid work, which was likely to have a very big influence upon,the,future development of the oil industry' in New Zealand. The enterprise shown ■ by' the companies was exampled in. the employment of Mr. Fedo-1 1 rowicz, whose scientifio attainments and experience in the oil fields of. the various ■• European countries specially fitted him for the all-round work required.of him in, New Zealand. Following upon the arrival of Mr. Fedorowicz in NewZealand early last year his inspection of the- Moturba-oil.field prompted him to warn.the companies of the great damago which • was daily accruing by the passage of water into the primary productive oil formation per medium of the wells belonging to tho . Taranaki Oil Wells Co. "I should explain," . said Mr. Griffiths, "that the inundation of water caused by badly-drilled wells (in other countries) has' completely ruined some very productive. fields; and many wells:have been abandoned, resulting in the loss to these countries of. millions of pounds sterling., : The seriousness of the water problem has caused all the oil : producing countries to make regulations which reduce the ' water danger to a , minimum." He ' went on to remark' that in these countries.provision.was made for blocking wells which.became unproductive or wore abandoned. On.October24, 1013, ho-continued, his company wrote to the Taranaki Oil. Wells Company stating that damage was being dono at Moturoa by'the water which was passing- into the oil stratum through No. 1 and No. 2 wells on its property, and-suggesting that these wells should bo properly plugged up. The 'secretary of the Taranaki Oil Wells tJompany replied stating that tho ■ allegations "regarding- these wells were ■ altogether inaccurate, and further that they had not been abandoned. During) this time,. Mr. Griffiths remarked, the' Blenheim well was steadily' approaching the oil formation.to be found at approximately 2200 feet. At'2o24 feet the casing was set in:cement, and the water completelv excluded from the cas.ing; On .December 31, 1913, oil was struck which .was absolutely free from water. . The production increased until it-reached slightly' more than fifty barrels (of forty gallon's, each) daily. This continued until the storage capacity' was, filled, , Further* accommodation was.secured and immediately;after pro? duction'h.ad been-resumed'it was covered that "• water 'was' "entering tho bore. Continued baling of tho Well resulted in the production of water, oil, residue, and mud in emulsion. Profitable production of oil from this level, which should have lasted for probably many years undiminished, was now ruined. The loss to the company was great, but a matter of perhaps greater importance was the danger to which all.future, wells wereexpbsed. The water trouble' having become-manifest, tho companies sought protection such' ,as had been granted in other/Countrils. It was impossible to know the'amount of damage so far done, but a. large area of the field might, yet he saved if the wells in. question were,treated in such a manner as would stop further inundation of the field. Other levels besides those which, the present w.ells had reached were.supposed to carry oil, and it was feared that' unless proper steps were taken these levels also might bo flooded, thus .spoiling any'possibility of productioni of 'oil .from' the. field at all. "Wo therefore suggest," _ said Mr. Griffiths, "that you immediately do, what is necessary to prevent the Taranaki .Oil Wells, Ltd., drilling any of their wells any deeper, arid further suggest tha.t Mr. Morgan (Government. Geologist) should visit the field and inspect all the wells, with'a-view to giving directions for tho carrying out of such work as~ ■may bo necessary for.; giving such protection to the. field as has been given in other countries. Further, that such regulations should be at onco gazetted as w:ill to insist upon the carrying out: of such , protective measures, as may bo necessary, for the preservation of Moturoa or any other field."

. Mr. Fedorqwicz said that ono well that was letting water through was" quite sufficient to spoil the whole oil-field.

M.r. Weston said that the 'owners of tho wells- complained of put forward a theory that water was in the oil stratum naturally, and they claimed that the presence of water in wells sunk under the .superinendonce of Mr. Fedtorowicz furnished proof of their contention. This theory • ho .'(Mr.; Weston) did not accept. - He considered that tho blocking of. wells, where': this was necessary, should be carried out hy tho:Government, the cost being borne by the companies concerned.

. The Minister said that ho would send the-Government .Geologist (Mr. Morgan) up toMotu'roa. to-morrow (Wednesday) to investigate the position and make a full report. Tho. .Taranaki Oil Wells Company, of course, had a right to be heard. He realised that the matter was one of very grpat importance, and that delay might he dangerous. Ho understood that he had no power to interfere with drilling meantime, but besides obtaining a report from his zoologist, ho, would instruct the Crown Law Department to. furnish an interpretation of the. Act bearing on tho subject. ' v REPLY FROM THE OTHER SIDE. (By Telegraph—Press Association.) New Plymouth, February 16. Regarding the alleged flooding of oilwells at Moturoa, a "Daily News" reporter interviewed Mr. C. Carter, chairman of tho New Plymouth Advisory Board of the Taranaki (N.Z.) Oil Wells Company. Ltd., whose bores aro opposite the Blenheim bore. Ho said: "We contend that no flooding of the field exists, but if it does exist, thero is nothing to show that.the bores of this company are in any way responsible, for it."