MINERAL OIL IN NEW ZEALAND

Taranaki Daily News, Volume LI, Issue 260, 27 October 1908, Page 4

MINERAL OIL IN NEW ZEALAND

AN IVriiliKSTliNU ARTICLE. Says the Ulasgow Herald of Scptcuiber last:—The increasing necessity for utilisation of oil fuel aud the enormous increase ra the demand for fuel lor motor engines deepen mo problem of the world's future supply, of mineral oil. Now. the mineral oil of commerce consists broadly of two kinds—that which is distilled from shale extracted irom the earth's strata, as is the paralliit oil of Scotland ; and that which is re-lined from crude oil pumped up from subterranean wells, as is ihc petroleum of America. Practically the uistili.ilion of I oil shale is coiilined to Scotland and Australia, whereas liquid petroleum is found and isibeing reliued in many parts of tiie world besides America, iiut if oil fuel is to he used 'extensively by steamers il is of the utmost Imperial importance that we should discover and utilise all the reserves of natural oil within the conlincs of the British J'hnpire. Canada has abundance and so has India. In South Africa there is reason to expect large future supplies. liut what of the Antipodes 1 Hi -New Zealand an extensive geological survey has been undertaken by tlitf Ciovernmeiit from which much" information will be obtained of the localities where oil may he expected—alter tile judicious expenditure of capital. .Meanwhile it is of interest to note 1 what lias been done ia the past in the ' Xorlh Island.

Jn 1874 tlie Poverty Bay Petroleum and Kerosene Company commenced operations on land known as the I'uka-ke-a-wiiinikoka Block. w'lh an oil expert from America to supervise operations. This company failed in the lirst endeavour to locale payable wells, but it is now known that at the position chosen (about lfoOl'l. above sea-level) there is oil ill considerable quantities, indeed, 30 years ago a spring of oil was struck which yielded from 8 to 10 gallons per diem, and this flow was obtained without striking the bed rock at all. The Poverty Bay Uil and Keroseno Company was forced to liquidate, but lias followed a few years later by the Soiun Pacific Petroleum Company working the ground. Nine wells were sinik, hut not to more than 400 ft. to 500 ft., and there was always gas and oil in the bores. The location of these wells was to the north-vast of the Waitangi •Station—a small area of ground including all. Other attempts were made by this company in this neighbourhood at a lower altitude, wilt m 1884 the machinery was removed to a fresh location on the IVainiiigaroniia River. A bore, there was sunk to 132 ft., linishing with 4'/ ;! in. pipe, and it was at this well a "blow-out" of oil took place in December, 1887, and the derrick was burnt down. The burning oil was playing up and down like a fountain 24ft. high. The history of this well ended soon after. The company erected a new derrick, the well was cleaned and drilled a few feet deeper, but the ilow of oil ceased. The shareholders became dissatisfied, calls were not forthcoming, but the plant was deposed ot to meet liabilities. Tlic -.Minerva Petroleum Company started a well in 188S on the bank of the Uatpaoa River at llaugataikapua, near Whatatirtu. This well caused great hones of ultimate success, but it had to be abandoned—principally from mishaps to the bore. When the gas-How was regulated n continuously burning ilaiuc could be obtained over 2ft. ia length front a lin. pipe from a depth to about 700 ft. At 750 ft a red shale impregnated with oil was met with. In 11)01 an English syndicate, after an examination of various localities with the Covermneiit ucologisl, decided to sink a trial bore at Okalntatu, near the Totangi stream. Work was commenced ill IUO3 .but the difficulties encountered made it necessary to reduce the bore, and work was abandoned at aibout 500 feet. l'he Southern Cross Petroleum Company in ISSI undertook boring operations on tile Kotokautuku Block, 70 miles north of GJsbonic. Seven wells were drilled, ranging from 150 ft. to 1 S2l.it. r'ivc of these were oil a tableI'lnd. the foothill of a higher range of mountains forming the backbone of the liust Cape country, which position was chosen because of the surface indications ot gas, oil, mid ozocerite. None of these wells reached more than a moderate deipth on account of faulty strata. In 1883 another position was selected to the north-east of the previous base of operations, and the services of an expert were again obtained from America. At about 400 ft a hard band of chrysfcallinc rock was encountered, lying in a blue-grey shale formation, followed by a mud vein of about 180 ft lower down, which eventually caused the loss of this veil. Another well was located a mile and three-quarters south-west of the original workings on a river-flat, and the depth reached was 1820 ft. Gas was nrot at 170 ft.; sandstone with gas and oil was met at 1000 ft. and 1200 ft.; hut after reaching 1820 ft. this well was alnmdoucd, although tne indications

were good. From those ami other experiments recorded in the Xew Zealand Mines Record there are reasons to encourage a belief that the Colony lias an industry ■belter than gold-mining waiting undeveloped. From the examination by scientific men there is no doubt of good indications of the presence of petroleum, extending from Horoera Point southwards to near Uisborne on two subsidiary lines in close proximity to the mountains of the, oast coast. The 'principal petroleum deposits of the world 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 l.i the neighbourhood of mountains that the strata have been thrown into a form suitable for the aggregation of the oil.

Mud viens now abound in most of oil producing localities, and these veins have been found in this district. Dr. Ortow thus writes:—"Jf a stratum a few hundred feet in thickness carries but 110 per cent ot petroleum, every square inch of such territory would contain much more oil than has ever ihcen. removed from it like area of Die most productive field." The i|ualitv 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 (|uiility and high fire test. A sample tested Was 70 specific gravity, and jielded in illuminating oil 1)4.00 per cent, paraffin, 2.!).") per eem.; waste and loss, 2.55 per cent.; fire test, ISO. The question of quality bears on markets, for an extra quality oil will stand the. charges on snipping to distant markets in bulk in tank steamers. The Admiralty 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 r.avai bases. Wherever oil is produced at reasonable expense a market exists, and New Zealand hopes for a large share of the trade of ■I lie Soul hern Hemisphere in mule oil. Consliil. intercolonial and Home .bonis would all usv oil fuel it lire supply were assured, for the use of oil fuel on board steamers involves gnat saving in wages and hunker space. The report of fire geological survey should contain scientific information of (he greatest value concerning an extended area. The Mew Zealand Annual .Mining Report for ]!H)7 slates Hint several companies have been formed and are actively carrying out boring uipcraions at Motnma, near New t'lynioulh, on the west side of the North Island, where discoveries of petroleum have been made. I'rospociing operations are also being carried on at Kotuku, near Lake Brunner, on file west coast of the South Island.