THE SEARCH FOR OIL

Evening Post, Volume CXII, Issue 85, 7 October 1931, Page 8

THE SEARCH FOR OIL

(To the Editor.) "Sir,—Your very interesting article, upon the latest report of1 the Commonwealth Geologist, Dr. Woolnough, should command the wide attention ' of' the' public of New Zealand, as it applies with equal if not greater force to the Oil prospecting operations in this country. The incalculable value in money and added prosperity to the Dominion, should oil be found, renders it a matter of vital in? terest to not -only shareholders in the. various oil companies, but also ■to the general public. Such reports as that of Dr. Woolnough's, voice the fairly general opinion that many of the efforts to find oil in this country should be carefully considered. In various • parts of the_ country we possess indications and evidences of oil not excelled in some of the world's greatest oil fields, while expert geological opinion of the highest authority shows very definitely; that many parts of the country, notably Taranaki and the Poverty :Bay districts, are favourable for the accumulation of oil, yet the great majority of the attempts to bore for oil meet with an extraordinary succession of accidents and mishaps. This country, even if presenting more difficulties than some parts of America, is not more difficult to drill than many other parts of the world where large oilfields exist, such as"Galicia and Poland. One Australian company which has been operating here is now having its affairs investigated by a committee-of its shareholders, but it is rare that- shareholders can be brought to take this step. They are frequently scattered over Australia and New Zealand so that it Is difficult _ to get them to combine, and in the majority of instances their individual shareholding or financial interest is not • sufficient to warrant the expense on the part of any one of them; therefore the directors reign year after year undisturbed. In the interests of the country as a whole it should be laid down that where a company ceases operations, or where it abandons any particular field,or area after operating (for this effectually damns that area) or where it may appear that there are any unusual circumstances; the Government should order an investigation, appointing the Government Geologist, a mechanical expert, and a representative of the shareholders, who should have power to call for evidence on the lines of Dr. Woolnough's report, for all logs of wells, all correspondence of the board,-and books, etc. If this were done, o it is.- not] improbable that, in at least' some cases, some interesting information would be re-vealed-I am, etc.,,