PETROLEUM INDUSTRY.

Taranaki Daily News, Volume LIV, Issue 182, 31 January 1912, Page 8

PETROLEUM INDUSTRY.

RETURN OF MR. HENRY. Mr. J. D. Henry, the British Colonial oil authority and author, returned to New Plymouth last evening from Christchurch. He leaves here on Friday for Auckland to catch the Macedonia in Sydney, and by leaving the steamer in Marseilles and going overland expects to reach London on March 12, thus completing his round-the-world trip in 2y 3 months, Mr. H. J. Brown, director of the British Oil Trust, is now in Christchurcli, and goes on to Dunedin to-day. He expects to return here early next week, and later will leave for Australia, but will come back to New Zealand subsequently. BORING ACTIVITY. We understand that the people interested in the Bonithon oil property have ordered an American oil rig, and will start boring operations at an early date. A drilling staff has been engaged. It is expected that two or three other companies will also resume operations shortly. N.Z. DEVELOPMENTS AND PROSPECTS.

PETROL DRIVEN TRAMS.

A POINT FOR NEW PLYMOUTH,

■ Whilst in Christchurch Mr/ Henry was interviewed by the Christchurch Press. Mr. Henry said:—"l am pleased to say that the great questions of the world's production and consumption of petroleunl for light and power purposes, are now thoroughly well understood in Londoi>. Oil production is one of the world's greatest mining industries; its distribution is a magnificently organised and profitable business. What is not sufficiently well understood is the importance of the industry to the British Empire. We know what it means in relation to Canadian, West Indian and Burmese production, but in New Zealand and many other parts of the Empire I fear that its importance has not been fully grasped, at any rate in relation to its Imperial aspect. The problem of getting an allBritish supply of oil in order that we may be independent of foreign production, particularly for naval purposes, is no longer neglected in the Mother Country. A greater output of benzine and liquid fuel is a recognised need of the times in this industry. That is why we are so keen to get oil in such islands as New Zealand, Australia, Trinidad and Newfoundland., In London we are no longer content to finance assist foreigners to discover and develop their oil fields; we now see the necessity for bringing into production some of those extensive territories which have been discovered in New Zealand and other parts of the Empire."

THE TARANAKI FIELD. "Take the -case of the Taranaki field. That field, in a more conspicuous degree than any other of which I have a knowledge in the cblonies, has the primary essentials of an oil- 1 field in which one can with confidence recommend an investment of British and colonial capital; it lias produced oil Which, analyses show, is of the very highest quality, and a position at tidewater ensuring the easy and economical delivery of plant and export of the crude and refined products. The negotiations, having for their object an association of British and colonial interests to ;handle this important property, appear to me to inaugurate a new system of British colonial industrial co-operation and ,oilfield finance. In future the work will be organised and the field developed, on cooperative principles; British and colonial shareholders will divide the responsibilities and benefits of the operations, and it is because I recognise the vast importance of this innovation in the colonial branch of the petroleum industry that I express my complete confidence in. a successful result of this joint British and colonial financial and administrative effort to organise and work a colonial oil industry and the incidental business of refining and marketing the production.' WAmTTTrT't

KOTUKU. Mr. Henry expressed the hope that drilling work would be started immediately at three or four different points where it was believed that oil would be discovered in commercial quantities. As a matter of fact, he said his sympathies in oil matters were of the most catholic description. It was not a matter of great concern, to him in what part of the Dominion the • first strike of oil was made, because he felt that the next discovery could not, fail to bring along better times for what had up to the present been a struggling industry. "I am acquainted with the Kotuku field near Greymouth. There can be no question about its importance. If the prospects were not good the Shell Company would not have touched it, and Dr. Warner, their expert, would have 'turned it down.' There can be no question of rivalry between Kotuku and Taranaki, or between the South and North Islands of New Zealand. There is no competition' in the business of oil production. The markets'will take the entire production of your fields, and you must remember that the prospective markets, which extend to Australia and embrace the oil fuel business of the Pacific, reach far beyond the geographical limits of these islands. Under this head it can; be claimed that this Dominion has several advantages over other parts of the Empire. The isolation of the Dominion ensures operators an unassailable home market, while, when an export business has been organised, Australia will take all the surplus oil produced. New Zealand has two markets of its own; it has the ordinary market for kerosene, petrol' and lubricating oils, and the nefa one created by the formation «f the Australasian navies, which will require supplies of liquid fuel. The Government has promised the industry reasonable protection. It is protected against foreign competition by its geographical position, an antiforeign tariff, and the free import of oil field plant and machinery."

PETROL-DRIVEN TRAMS. Mr. Henry mentioned several matters of lotal interest. He said he looked forward to the time when petrol would be the motive power employed on some of the small tram systems of the Dominion. Petrol-driven trams would be of immense service in some of the small towns which at the present time were content to work the obsolete horse 'bus system. The use of petrol would do away with central power stations and the unsightly installation of overhead trolley wires. It would also, he thought, be found to be cheaper than electrical power. Asked if the idea was new, Mr. Henry said it was not; petroloperated trams had been introduced at an English watering place (Morecambe) with the best possible financial and engineering results, and they were hoping that petrol would now come into widespread competition with electricity in this important branch of street traction.

DEVELOPMENT IN TARANAKI. PROSPECTS FOR HAWKE'S BAY. Messrs. Herman and Weger, manufacturers of the New Zealand combination rotary drilling machinery, are now in Napier on business in connection with their machines, all of which are being built by Messrs. J. Niven and Co tJ ot -

Port Aliuriri. When seen by a Hawke's Bay Herald reporter on Saturday, Mr. Weger, who, sifter visiting New Zealand last year and ascertaining the possibilities of striking oi! here, decided to extend the firm's business to the Dominion, was very enthusiastic about tlie industry. "It is going to be the biggest industry that we have ever 'known in any part of the world," he said. "I met Mr. Henry in California and other parts of the | world, and everywhere he has taken the oil question in hand his efforts have been attended with the greatest success. That being so, the people' of. the Dominion may rest assured, that Mr. Henry would not report as he has done, or interest himself to the extent that he has, unless he considered the prospects here were good. His enthusiasm will mean a great deal to the Dominion. The Taranaki company alone have a working capital of £210,000, and now that modern methods of boring are being introduced the output of petroleum from that district within a few months' time is likely ( to more than come up to expectations. The No. 2 well at Moturoa is a fair indication of what will probably occur in the future. That well has been flowing for a period of two years without any pumping. I have drilled numerous wells in the United States, many of which have given 8000 'or 10,000 barrels of oil a day, but I have never known of a well that has been flowing continuously for two years. Pumping has invariably become necessary after a certain period; but in Taranaki the flow of No. 2 well appears > to indicate that the oil .is present in unusual quantities. I have just been to New Plymouth, where, in company with • Mr. Henry and Mr. H. J. Brown (chairman of. the British pil Trust),: I visited • | the various bores. We found that they have had many- difficulties to, contend i with at N. 6 bore in trying to shut off !' the water, but . the manager told me that r he hoped to cut the water off in a , • couple of weeks' time, when a start will ■ i be made straight away at deepening the i bore." Referring to the slow develop- . ment of the industry In the past, Mr. [ Weger said:—"The people of Taranaki . have a very warm regard for Mr. Henry, r and it is a pity that he did not come to New Zealand three years ago, as there ' I was phnty of money available in London ! thea for speculative risks. At the present time there is practically a panic, [ but three years ago £IOOO could have ' been obtained for promoting the oil industry in New Zealand as easily as sixpence could be found to-day. Mr. Henry 1 is about to leave for London, and as soon " as he returns operations will commence * in New Zealand—a refinery will be erect- " ed and the business will be carried on in I a big commercial way." "What, are the prospects in Hawke's Bay?" asked the reporter. 1 "Mr. Henry is very sorry that he has no time on this occasion to inspect ; Hawke's Bay, but he says there is no doubt that there are great possibilities : in this district. He visited the district last year with Dr. Warner, who report l ed that there was every evidence that it would turn out a great oil district. The Hawke's Bay oil belt runs through from Gisborne to Kotuku in the South Island at an angle of about 45 degrees. This is indicated by the fact that the oil at both these widely-separated places is identically the same. According to our calculations the belt comes to within fifteen miles of Napier, and two miles of Hastings. The Kotuku Company already have a large plant at Dannevirke ready to commence operations, and my .firm has entered into a contract to deliver two plants to the order of Messrs. Watkins and Fox, of New Plymouth. One of these plants will be Set up at New Plymouth and the 'other in the Waipatiki district, Southern Hawke's Bay." Mr. Weger is very optimistic as to the prospects of the petroleum; industry in New Zealand, which, he declares, will be one of the biggest industries in the world.' He attributes the slow progress made in the past to the obsolete methods jused when boring, and is confident that , the adaption of the rotary system introduced by his firm will solve the difficulties that have hitherto stood in the way of quick development. By this system a well 3000 feet deep can be drilled in six months. This is, of course, surprisingly quick as compared with the rate l at which the Taranaki 'boring was done, [and it is easily conceivable that, should ' the oil belts pan out as well as antici- [ pated, the industry will quickly develop i into one of considerable national im[portance/