MINERAL OIL IN NEW ZEALAND.

Gisborne Times, Volume XXVI, Issue 2337, 2 November 1908, Page 5

MINERAL OIL IN NEW ZEALAND.

The increasing necessity for the utilisation of oil l fuel and the enormous increase in the demand for fuel for motor engines deepen the-problem of the world's, future supply or mineral oil. Now the mineral oil of commerce consists broadly of two kinds—that which is distilled from shale extracted from the earth's strata, as is the paraffin oil of Scotland; and that which is refined from crude oil pumped urn from subterranean wells, as is the petroleum of America. Practically the distillation of oil .shale is eonlinc-d to Scotland and Australia, whereas liquid petroleum is found and is being refined in many parts of the world besides America. But if oil fuel is to be used extensively by steamers it is of the utmost Imperial importance that we should discover and utilise all the reserves of natural oil within the confines of the British Empire. Canada lias abundance and so has India. In South Africa there is reason to expect large future supplies. But what of the Antipodes? In New Zealand an extensive geological survey has been undertaken by the Government from which much information will he obtained of the Ic'calities where oil may be expected—after the judicious expenditure of cajntal. .Meanwhile it is of interest to note what has been done in the past in the North Island. In IS7-1 the Poverty Bay Petroleum and Kerosene Company commenced operations on land known as the Pakake-a-wliirikoka Block, with an oil expert from America to supervise operations. This company failed in the first endeavor to locate payable wells, but it is now known that at the position chosen (abetit 1450 ft. above-sea-l'cvel) there is oil in considerable quantities. Indeed, 30 years ago a spring of oil was struck which yielded from S to 10 gallons per diem, and this flow was obtained without striking the bed rock at all. The Poverty Bay Oil and Kerosene Company was forced, to liquidate, but was followed a few years later by the South Pacific Petroleum Company working the same ground. Nine wells were sunk, but not to more than -100 ft. to 500 ft., and there was always fgas and oil in the bores. The location of these wells was to the northeast of the Waitangi Station—a small area of ground' included them all. Other attempts were made by this, company in this neighborhood at c lower altitude. Put in ISB4 the machinery was removed to a fresh loca lion on the Wnirangaromia- River A bore there was sunk to 132 ft. fiuisliing with 4-iiin. pipe, and it wa: at this well a “blow-out’’_of oil tool place in December, and the derrick was burnt down. The burn ing oil was playing up and down like a. fountain 24ft high. The history of tiii* well ended soon after. The company erected a new derrick, the well was" cleaned and drilled a few feet deeper, hut the flow of oil ceased. The shareholders became dissatisfied calls were not forthcoming, but. the plant was disposed. of to meet liabi lities. The Minerva Petroleum Company started a well in 188 S on the hank of the Waipaoa ltiver at Mangataikapua, near Wbatatutu. This Avell caused great hopes of ultimate cuccess. hut it had to be abandoned —principally from mishaps to the bore. 'When the gas-flow was regulated a con j tinuously burning flame could he obtained over 2ft in length from a lm pipe from ia depth of about 700 ft. At 750 ft. a red shale impregnated with oil was met. In 1901 an, English syndicate, after an examination - of various- localitie: with the Government Geologist, do* cided to sink a trial boro at Okahu j atu, near the Totano;! styeim. I was commenced :in 1903, hut tho cliffi- ! culties encountered made it neces-

eary to reduce the bore, and Avork was abandoned at about S(H) feet. The Southern Cross Petroleum Company in 1881 undertook'boring operations on the Itotokautuku Block, 7(1 miles north of Gisborne. Seven wells Averc drilled, ranging from 150 ft. to 1820 ft-. Five of these wore on a tableland, the foothill of si higher range of mountains forming the backbone of the East Cape country, which position ivas chosen because of the surface indications of gas, oil, and ozokerife. None of these wells reached more than a moderate depth on account of faulty strata. In 1883 another position was selected to the north-east of the previous base ofoperations, and the services of an expert were again obtained from America. At about 403 ft. a hard band of crystalline rock was encountered, lying in a bluc-grej’ <shale formation, followed bv a mud A r ein of about 180 ft. lower down, which eventually caused the loss of this well. Another well, was located a mile ..and three-quarters south-west of ‘ the original workings on a river-flat, and the depth reached avas 1820 ft. Gas was met at 170 ft.; sandstone, ivith gas and oil, was met at 1000 ft and 1200 ft.; but after reaching 1820 ft. this ivell was abandoned, although the indications ivere good. From these and other experiments recorded in the New Zealand Mines Records there are reasons to encourage a belief that the Colony has an industry better than gold-mining waiting undeveloped. From the examinations by scientific men there is no doubt of good indications..of the presence of petroleum, extending from Horoera Point southwards to near Gisborne on tivo.subsidiary lines in close proximity to the mountains of the east coast. The principal petroleum deposits of the Avorld are intimately associated with the great mountain ranges, not that there is any connection between the origin of petroleum and the positions of the deposits in relation to the mountain ranges, but it is usually in the neighborhood of mountains that the strata have been thrown into -a form suitable for the aggregation of the oil. Mud veins now abound in most of the oil-producing localities, and these Amins have been found in this district. Dr Ortow thus writes: —“If a stratum a few hundred feet in thickness carries but 1-10 per cent of petroleum, every square inch of such territory would contain much more oil than has ever been removed from a like area of the most productive field.”

The quality of the oil obtained in this district has been spoken of highly. The oil is exceedingly sweet and easily distilled, furnishes an illuminant of fine quality and high firetest. A sample tested Avas 79 specific gravity, and yielded in illuminating oil 94.00 per cent.; paraffin, 2.95 per cent.; waste and loss, 2.55 per cent.; fire-test-. 190.

The question of quality bears oil markets, for an extra-quality oil will stand the charges on shipping to distant markets in hulk in tank steamers. The Admiraltv last year asked the Taranaki Oil Company for a quotation of oil for fuel purposes, and the Admiralty have ordered storage tankage for petroleum at all naval bases. Wherever oil is produced at reasonable expense a market exists. and New Zealand hopes for ~-a large share of the trade of the Southern Hemisphere in crude oil. Coastal. intercolonial, and home boats would all use oil fuel if the supply were assured, for the use of oil fuel on board steamers involves great saving in wages -and bunker space. The report of the geological survey should contain scientific information of the greatest value concerning an extended area. The New Zealand Annual Mining Report for 1907 states that several companies have been formed and are actively carrying out boring operations at Moturoa, near New Plymouth, where discoveries of petroleum have been made. Prospecting operations are also being carried on at Potuku, near Lake Brunner, on the Avest coast- of the South Island.—English paper.