PETROLEUM.

Taranaki Daily News, Volume LII, Issue 184, 8 September 1909, Page 4

PETROLEUM.

GISBORNE OIL COMPANY. "At a meeting of directors of the Gisborne Oil Company the two last weekly reports of the manager were read, as follows:—"August 21.—1 beg to state that the formation has changed this week for the better. We struck shell at 522 ft, with a strong vein of petroleum gas running to green sandstone, and still drilling in the same. I do not anticipate any more trouble with the Bin casing, as we are overcoming the friction, and should make better progress from now on." "August 28.—1 desire to state that the formation we arc now drilling is very much the same as last week, but carrying an exceptionally strong petroleum odour. The total depth is now 613 ft."

MILES OF OIL LAGOONS. Is Mexico to become one of the principal producers or refined petroleum? .The following extract from the report of Mr. L. J. Nunn, His Majesty's Consul at Vera Cruz, published in the Board of Trade Journal, seems to imply that the answer must be in the affirmative. Mr. Nunn states that from one end to the other Mexico is being explored for indications of oil j bearing deposits. Oil-producing lands have been discovered in the State of Vera Cruz, near the Isthmus of Tehuantepec, and the flow of oil in the wells hns been of such quantity and quality that a well-known British company has erected a large refining plant at Minatitlan, built on the most modern lines, and, as regards capacity, by far the largest in the Republic. This plant is now in partial operation. A certain part of the production is to be fuel oil, and as the same company also works the Tehuantepec National railway jointly -with the Mexican Government, the lattcr's engines will be supplied with this fuel oil. Large storage tanks have been erected at Vera Cruz and other places to supply the several railways in their part of the country. When this plant is in operation it is expected that the Mexican market for foreign petroleum will disappear. Great activity continues in prospecting for and developing oil lands. One of the most remarkable oil wells ever known probably is that of Dos Bocas, in the northern part of the State of Vera Cruz. The well has been remarkable, not only on the account of the fierce conflagration which consumed several million barrels of oil, but aiso on account of the tremendous force of the flow and the enormous output. Since the extinguishing of the fire the raramount problem ha & been to control the tlow and save the oil. Immense earthen reservoirs and dykes have been built, but the oil has overflowed these and spread over the lagoons for a distance of several miles. In addition to this discouraging predicament, men and animals have succumbed to the effects of the noxious gases which are constantly being thrown off by the well in great quantities. The company owning the well has worked incessantly and persistently, mid now has it under control.

.. One of the effects of this development m the oil districts of Mexico has been that wtrolcinn has come into use as a substitute for coal as fuel. Formerly 120,000 to 140.000 tons of patent fuel drawn from Cardiff and district, but during the latter half of 1908 they converted 50 per cent, of their engines to oil burners, and so satisfactory and economical has the result been that it is only a matter of the erection of the necessary storage tanks for the use of coal as fuel to be given up altogether. Many industrial enterprises which were formerly coal consumers have changed, and still others are now changing their boilers in order to use oil. This has affected the importation of coal and patent fuel from the United Kingdom and elsewhere to the extent of causing a decrease of imports of about 40 per cent, during 1908.