The Daily News. SATURDAY, MARCH 7, 1914. THE PETROLEUM INDUSTRY.

Taranaki Daily News, Volume LVI, Issue 212, 7 March 1914, Page 4

The Daily News. SATURDAY, MARCH 7, 1914. THE PETROLEUM INDUSTRY.

The report of tin; Government Geologist (Mr. Morgan) oil the alleged Hooding of the Moturoa oil field is characterised by the caution usually associated with scientists' statements. Mr. Morgan is quite non-committal. "The evidence was not conclusive" that flooding had occurred in the Blenheim bore as :i result of the faulty boring by the parent company, but with "a view to reducing the risk of any possible danger in future" ho makes sundry recommendations for the regulation of boring operations. The suggested regulations are in effect similar to those in operation in other oil-producing countries. The Mines Department has been asked to ascertain from Great Britain and America what are the latest Regulations, but it is stated that the Department will not wait for the replies, but will immediately draft regulations on the lines of those suggested by Mr. Morgan. These regulations are very necessary, as has been found in America and elsewhere, and their enforcement should do much to assist the infant industry. Tile effect af the regulations is to put the oil-boring operations under close Government inspection. They provide for the' proper shutting off of water in wells now being bored or producing oil, and the proper plugging of abandoned wells. There has been a good deal said about the indifferent boring of the wells having led to water flooding the oil measures. Whether there 'is any justification for the statement must be left to those qualified to give an opinion. Mr. Morgan hesitates to commit himself on the point. He simply says "the evidence is not conclusive" that flooding has occurred, but to remove all.danger of such a thing occurring lie evidently thinks it necessary to make and enforce very strict regulations defining the steps that each company boring for oi' shall take to keep the water in hand. In the United States it has been found that large corporations, controlling practically all the wells on a field, can deal most effectively with the water problem. A writer in the London Times, dealing with the Californian oilfields, says:— i.ater, the bugoear of the oilfield, li?a in close proximity to the oil sands, an: 1 , is probably the most serious menace that confronts the oil producer. Reckless drilling has done irreparable harm to many an oilfield. In the handling of water the advantage of the large corporation lias been proved, as it lias been almost hopeless to secure the necessary cohesion among small pvoj d'.icera, owing to lack of capital and other causes." This is not necessarily an argument for consolidating the oil interests in Taranaki, but it discloses u strong reason for uniform action being made obligatory upon all the companies for the proper control of the water, and to ensure this there must be Government regulations and inspection. It is cheering to have once more an expression of opinion from Mr. Morgan to the effect that every indication gives promise of Moturoa developing into a successful oilfield. The enforcement of the regulations suggested should nute rially contribute to this much-desired and long-deferred consummation, and those who were disposed to quest,ion the wisdom of the action of those responsible for the proceedings leading to Mr. Morgan's visit, must now only be grateful for the satisfactory results that will be the outcome of the inspection.