OIL SHALE

Hokitika Guardian, 5 August 1930, Page 2

OIL SHALE

REVIVING THE AUSTRALIAN INDUSTRY. SYDNEY, July 24. Tremendous interest has been created in Australia by the announcement that a powerful group of Broken Hill companies has decided to become interested in the oil shale fields of Australia. This is regarded as one of the biggest forward moves in the Australian mining industry of recem years. It would seem that the fullest financial and technical resources are ensured for the exploitation of the deposits on a large commercal scale. Extensive reserves of oil sltale exist in several States, notably in New South Wales and Tasmania, from which a full range of petrols, kerosenes, heavier oils, waxes, and numerous by-products can be won. In New South Wales alone known deposits exceed 40,000,000 tons of shale, from which 3,500,000 gallons of crude oil may be expected. The problem of tho industry in the past has been chiefly one of costs. It has not been possible to mine the shales and treat them, under old methods of retorting, to produce oil at prices that could compete successfully with imported 'products flrom petroleum wells Oil shale ruining was once a profitable

Australian industry. In the early ’9o’s the average annual production in New South Wales was worth £‘100,090. . The internal combustion engine was then only in its infancy, and the motor age had not dawned. The shales were mined chiefly for their kerosene content, in which they were so rich that, when local retorting became unpayable, richer crude shales were shipped to Germany. The Now South Wales shales rank as the most valuable in the world, giving as much as 150 gallons of oil to one ton of shale, with an average of between 70 and 120 gallons. Large works have been erected at three centrcs —to the west of tbo 'Blue Mountains at Newnes (named after the English newspaper proprietor who supported the venture), at Murrurundi, in the north, and at Mittagong, on the Sydney to Melbourne railway line. to the high costs, low prices, and the indifferent success which attended the Scottish system of retorting, the enterprises were not profitable. The Broken Hill companies have become interested in the Newnes deposits. The Commonwealth Oil Cbiporation, with a capital of £BO,OOO, established big works, and commenced operations at Newnes about twenty-five years ago. Many mistakes were made, and the enterprise fell into tho hands of the debentue holders. Mr John Fell subsequently worked the deposits on a small scale, but he found labour conditions oppressive. The revival for three years ol the Commonwealth oil shale bounty, com-

mencirag with 3£d a gallon, but declining to l£-d, as production increases, and larger duties against imported oils, have encouraged renewed efforts,. both in New South Wales and Tasmania, to produce some of Australia’fe liquid fuel requirements. It is possible that 500 men may be employed at Newnes, so the importance of the development of the deposits at a time dike the present can be readily understood.