THE TARANAKI OILFIELD

Taranaki Daily News, Volume LIII, Issue 307, 22 May 1911, Page 8

THE TARANAKI OILFIELD

(Continued from page 4.)

considerably enhanced as the field is successfully exploited. Small landholders in Armenia, dwellers formerly in wretched huts, are now living in comparative affluence on royalties on oil derived from their lands. May Taranaki landowners have similar good luck! THE HARJIOR AND PORT OF SHIPMENT. The harbor authorities are to be congratulated on their foresight in preparing for the future requirements of this district. In the importation of a most up-to-date dredge they have acquired the means of making the harbor suitable for the accommodation of large steamers, such aa the oil-tankers of our navy, which will certainly draw liquid fuel supplies from here.

There is every probability of New Plymouth being made a naval oilfield base. Information has been brought under our notice that it is the intention, should the supplies of oil warrant it, of this base being erected in the near future. The Admiralty has been watching events very closely as far as Taranaki is concerned. Lieutenant Sydenham, in charge of the naval coal supplies, has lately visited the district and inspected the work that is being done, and before him two commanders of his Majesty's warships visited the well and, \ye understand, reported to the Admiralty most favorably. As previously announced, 25 barrels of the crude oil were sent Home through the New Zealand Government to the Admiralty for testing ,as to its value for fuelling purposes.

Our Prime Minister, Sir Joseph Ward, some few months ago put himself into communication with Dowiiing-street, in reference to obtaining supplies of oil fuel from Tarajiaki, and the naval authorities replied that in the event of a good supply being obtained here the Admiralty would take a.good deal of its supplies from here. One of the many questions to he brought up at the Imperial Conference will be this very matter of oil fuel supplies and bases throughout British possessions, and as Sir Joseph Ward has taken great pains to be fully informed on this subject it is probable that very shortly some important statement in this connection may be made. OIL AXD ITS BY-PRODUCTS.

As far as benefits are concerned, we may look forward to the supply of oil fuel for our railways, navy, and mercantile marine, who, it is foreshadowed with certainty, will be big consumers of the petroleum itself. The next most important item is' benzine, of which there is a

shortage throughout the world, and as Taranaki oil contains such a high percentage we may look to this by-product as being one of the main sources of re-

venue. Then there are lubricating oils of many grades and of exCelicnt quality, which Messrs A. F. Craig and Co., of Paisley, Scotland, who refined samples of the oil. declare to be "exceptionally fine," remarking also that "the oil is'of ex-

ceptional quality, and the most superior we have examined." One of the bestknown experts in the world stated that the oils of New Zealand are superior to those being supplied to Australia from the fields of Burma, Sumatra and Borneo. , There is, of course, a large demand for kerosene, too, in our own country, a demand which is being supplied now liy the Standard Oil Company of America, and in which trade the Shell Transport and Trading Company is about to take a hand.

Last, but certainly not least, is paraffin, n most important by-product of petroleum which at present is an important factor in the manufacture of candles, which is an industry in itself capable of employing a large number of hands. It is stated by one authority that owing to the large proportion—lo.7o per cent of paraffin in our oils, we should be able to compete with any country in the world in the manufacture of candles. The value of this heavy proportion of paraffin may be estimated in a measure from the fact that in some parts of Russia, where oil is with difficulty brought to the sea coast, oil containing only 5 per cent, of paraffin is treated for the extraction of that constituent and provides a lucrative investment, no value being placed on the residue, which is burned. There are many other uses of paraffin. Tt is used in the manufacture of wooden matches; an application of paraffin to woollen fabrics imparts an additional strength and renders them waterproof; it is used for lining beerbarrels, and is employed for glazing frescoes and paper; it is used in starch manufacture as a. producer of the necessary gloss, and in laundries paraffin is largely used as an auxiliary to soap. Paraffin is employed as a preservative of stone and wood, and it forms a protective coating for labels and stoppers of bottles used for corrosive liquids. With regard to petrol, the consumption of this by-product is ever increasing, owing lo the growing list of its uses, principal among which come oil engines of all kinds, in motor cars, for aviation purposes, and on steamers for internal combustion engines. As bearing' on this, it is interesting to notice that last year the British Admiralty decided to build a motor battleship, an ambitious scheme formed by Mr. McKechnie, chief engineer to Messrs Vickers, Son and Maxim, the vessel to be equipped with internal combustion engines as prime movers, and using producer gas manufactured on board from petroleum, 36,000 horsepower being generated by a set of Diesel engines giving a speed of 21 knots. MARKETS.

There is in Xew Zealand itself a splendid market for oil and its by-products, and almost at our door is the Australian Commonwealth, which will be a large consumer, and which, owing to its dis-

tance from the oilfields, will doubtless find it advantageous to import from here. There is a growing market for oil fuel, which is being found suitable for use on locomotives, steamships, smelting works, etc., and it is not unreasonable to hope that in a few years Xew Zealand railway engines will burn oil instead of coal, especially as so nreat difficulty is reported in obtaining supplies of good steam coal. One of the ablest iiuthorities on this question has declared that within five years no locomotive or steamer running where oil is produced will use any other fuel but oil. Should local production reach S00,0<)0 tons per annum, it is considered practically certain that a market will be found fnr that amount. The estimate is based on the supposition that the railways will take ">O.OOO tons per annum, the 'Frisco mail boats 85,000 tons (they are being built for oil fuel), the Australiant Navv is at present calling tenders for (10,000 tons, and the South Pacific fleet should draw some 120,000 tons, the balance being consumed by the Union and other steamship companies and by local industries, including that of smelting Tanmaki ironsand, an industry which, it is understood, will be in full swing before very long in New Plymouth. ADVANTAGES OF THE FIELD.

The close proximity of the oil wells, and of the oilfield generally, to our harbor is an undoubted advantage, making for economv by saving the necessity for the tremendous cost of laying down pipe lines which on some Selds absorb a vast amount of capital. As an instance, a Californinn oilfield has n pipe-line 1200

miles long. The latest line constructed, from the .Maikop field, on the Black Sea, to the nearest port is fifty miles in length, and cost £200,(X)0, including the necessary pumping stations, hi our case the piping would be short, and a gravitation scheme should be possible. The money saved should be available for further development. Reference has already been made to the proximity to the continent of Australia and to the southern base of the Pacific squadron. The epening of the Panama Canal is sure to have the effect of bringing many more large steamers to New Zealand. Trinidad, Vera Cruz and New Plymouth should be the fuelling stations. It is freely stated that this will become a favorite steamer route, enabling passengers to escape the trying heat of the Red Sea. For the New Zealand trade, there is the great advantage at present—and one which will probably exist for some time—that the field is served by the main line of railway. OfL EXPLORATION.

Both in the matter of production and consumption the past year has been a period of momentous importance to the petroleum industry, a year of great progress and a period unfolding possibilities in the use of oil which hitherto even the most sanguine had not anticipated. Concerning new discoveries—and Taranaki is accounted one of them—much has happened, and deposits have been found which arc of unquestionable importance, some of them of such a nature that the whole future of the industry may be affected by their output. The British Empire has been shown to possess such deposits of oil as may practically revolutionise the fuel supply of the coming years, and for marine purposes the importance of the discoveries in Taranakr (and New Zealand generally) can hardly he over-estimated. Up to the present only 8 per cent, of the world's oil output has been secured within the Empire, but it is fully anticipated that within the next five years British colonies will place Britain in the proud position of being one of the greatest, producers among nations. Trinidad. Newfoundland and Canada all doing their share.

THE FUTURE. It seems necessary to point out that the successful negotiations so far do not mean that half-a-dozen new bores will be started next week, and that we are not likely to have oil-tanks sent out here by wireless to take in fuel. The flotation of a company such as this will take time, and it is not likely that any actual movement hero will take place until late in the year. The purchase having been completed by the syndicate, and the new company formed, it will hi necessary to, engage staffs, purchase machinery, and ship it'out here. The staff will probably consist of a managing director and expert; an expert driller and geologist, and a chemist; expert drillers, "fishing men" to handle all casing jobs and shutting off water, and men engaged in the erection of derricks and dwellings. Later will come refiners, and so on. Business of all kinds in New Plymouth must benefit from the introduction of this capital. (Mr. Sydney H. North, writing in the Financial News of April 14 last, said: "From reports which have reached me there can be little doubt as to the value of the product, the analysis of. which is so well known. The geological position of New Zealand in relation to the above oils is undoubtedly an excellent one, and there can be no lack of outlets of every description; in fact, if the confidence of the colonial Government is justified, Xcw Zealand may. in regard to oil sun-My. become in a few years the 'America of the west,' and from recent reports which have come to hand concerning these new fields there! can be little doubt on this score."

The production from our present wells is a considerable one, and by referring to statistics lately compiled by Mr. B. Thompson, of London, it will be seen that the average daily production of oil from American wells is only eight barrels per well. The average production of California itself is twelve barrels per well. Flowing wells of Taranaki that are producing their twenty barrels a day and of a vastly superior quality, prove that our wells compare more than favorably with those of the West.

Dr. Day. head of the United States Geological Society, recently pointed out in n report to the Government that he estimated that by 1035 nil the* oil that by reasonable conjecture can be assumed to exist in the United States of America will be exhausted. The importance of this statement cannot be over-estimat-ed. It means that in 2G years the entire supply of petroleum in America will be gone. MR. CARTER TO GO HOME. It is necessary, before the sale of the company to the London people can be complehd, that one of the local directors shall go Home, and it has been unanimously decided by the directors that their chairman, Mr. C. Carter, is to go. He will leave in about three weeks' time. Apart altogether from the expediency or otherwise of this course from a local standpoint, it is one of the conditions laid down by Mr. Henry that a member of the directorate should meet his principals in London. There will be much for Mr. Carter to do, and he will have full authority to make the final settlements. It will be generally agreed that no one is more fully qualified than the chairman of directors to perform this work. Ever since his appointment to the directorate, he has been keen on getting oil, not for speculative purposes, but with a view of founding a profitable industry for Taranaki. So completely has he thrown himself into thi? work that one may he excused for wondering how he has found the time to conduct his own private business. He is fully cognisant, as far as the layman can be cognisant, of the whole of the operations, and he it was who had most to do with Mr. ITenrv when he was here, and he may be relied upon to use his undoubted business acumen in the final settlement of most important negotiation-.

OIL FOR IRONSAND OPERATIONS. Mr. J. Smyth, representing an ironsand syndicate, was in New Plymouth on Saturday. He paid a visit to the bores at Moturoa with a view to ascertaining the supply of oil which would be available for fuel purposes in connection with proposed smelting operations.