THE OIL INDUSTRY IN POVERTY BAY.

Gisborne Times, Volume XXVII, Issue 2588, 24 August 1909, Page 2

THE OIL INDUSTRY IN POVERTY BAY.

REASONS FOR HOPEFULNESS. The encouraging reports which have been coining irorn lNew Plymouth oi late, in regard to the oil industry have directly increased attention to the possibilities of oil being struck in payable yuan fcities in Poverty Pay. On this topic some people are disposed to bo pessimistic on account of past failures in prospecting, but a “Times” reporter, in a chat with Mr. W. E. Ackroyd, was shown clearly that there is, on this account, no need for being discouraged. Mr. Ackroyd’s views on the oil industry are entitled to the utmost consideration and, in giving some of his reasons for holding a strong faith in the future of the oil industry in this district, he says: — _ We, who were residing in the district in the past have gone through the troubles of unfulfilled hope, but should we lose hope and faith because the Southern Cross, South Pacific and Minerva Companies sunk their money in trials to find oil in payable quantities? One must take stock of the history of other countries to obtain a correct idea of the value of the attempts made here in the past. Take the State of California: Tt is recorded that £3,000,000 were spent before a payable oil-field was obtained. California produced 44,854,737 barrels in 190 S. At the time the South Pacific Petroleum Company. Ltd., commenced its operations near Whatatutu, in 1880, California was only producing 40,522 barrels and trad gone through exactly the same mistakes ip the location and drilling of wells that we did—that was in drilling at, or near, the oil and gas emanations. There was published in December, 1887, a letter from San Francisco, dated January 26th, 1886. written bv Mr. P. C. MacPherson, manager of the Pacific Coast Oil Company and received by Mr. J. H. Stubbs, the manager of the Minerva Companies, from which I desire to quote: — “From your letter I judge you are meeting with the same difficulties in drilling as have been met and overcome by Us ih Californian oil-fields. I found upon my coming hero that my years’ experience in Pennsylvania fields availed me little in operating in California, and, in fact, .1 had to learn the business over again by actual experience, that is to say, the ordinary rules and methods of operating in Pennsylvania were not adapted to overcome the difficulties that were never encountered in Pennsylvania. Obstacles and discouragements that at times seemed insurmountable were at last overcome, and we have now a fair production, and can drill with reasonable chance of obtaining the desired depth. From what I learn of your location, I judge you are makiug the same, mistakes as were formerly made here, that is, drilling in. the ‘breakes and slides in the formation where the surface shows of

oil are large.’ ” I will now' give a few reasons for my faith, and try to clear up the common doubts one hears. In the above quotation there is, I believe the reason, summed up for 9-10 of the failures in the past, to get down. In fact, I think only three, at most four, wells among all the attempts made in this district wore in sound formation. To me, that is positive proof we had not given the East Coast a reliable test.

It has often been stated that this country is too much disturbed and fractured to contain and produce petroleum in quantity. To gauge whether this is a correct statement Ave must examine other fields. Take California again, in Avhich there are manv points of similarity to this East Coast area. Oil is being found ;in that State in country Avhich shows a dip at an angle of from 45 to 60 degrees. The average dip on this would nob go over 25 to 30 degrees. In the oil fields of Galicia and Roumania we find that the dislocated and fractured belts, along the mountain chains furnish the gas and oil. In Russian oil fields the same is found, being situated on much-dislocat-ed and fractured zones on each side of the Caucasus-uplift. Also in Persia on a dislocated zone along the Kurde-stan chain; to say nothing of Japan, Java, Sumatra, Borneo, and Peru, which are all knoAvn to have much dislocated and fractured strata, and are to-day productive oil fields, along parallel belts to the main mountain chains of these countries. For myself the knowledge of the above is sufficient to upset the idea of this country being too disturbed. Japan is particularly to ns as the oil fields belong to the. Tertiary Age’ and being on small islands similar to New Zealand in many ways. (Japan’s output in 1886 Avas 1,600,000 gallons; 1901, 40,000,000 gallons). In an examination of our oavu district, as a whole, we find the following indications which show the presence of petroleum and its products to be traceable over a large area- • (a) The presence of petroleum exuding above the surface at several distant locations, (b) Large numbers of natural gas emanations extending over a whole district, but along AA'ell-defined lines, parallel to the Itakamara range, (c) Ivercsene or oil shales are' found in several places, (d) Over the samcparallel lines we have numerous saline- springs. Roclcsalt being present in one Ideality. _ Brine is an almost universal accompaniment of oil and gas ; Topic-- America,. Russia, Galicia, -India, and Japan need only be cited in this connection, (e) The presence of mud emanations with gas and saline water, as in Russia. India, BurmaH, etc. These mud volcanoes are not generally found in the United States, where the oil strata belongs to early geographical periods, (f) There is at least one place Avhere “ozokerite” or solid paraffin can be found, (g) It has been proved that there are in the district (in several places) the structural and geographical formation of strata, which is now universally accepted as being requisite for the accumulation of oil and gas in larger quantities, i.e., anticlinal folds of porous strata, above which there is an impervious cover or 'blanket. An anticlinal fold can be

traced in... places on each, of the welldefined lines previously mentioned. The impervious -cover is to be found practically over the whole district, consisting of elaystones, and shales (papa). The underlying porous strata being sandstones and limestones with conglomerates in places. The drilling in the‘'past gives us reliable data as to tills cover. The present Waitangi bore at Whatatutu, so far as information hae been made piumc, proves an impervious cover in that location. In fact, it is nearly an ideal one. The presence of the two underveins at 100 ft, and 1571 t being particularly good, as the required cover. -So far as the quality of the oil is concerned, it is anticipated we shall obtain an oil of extra quality, distillation tests disclosing the following percentages:—Petroleum spirit, nil; kerosene, 47.2; lubricating oil, 51.7; paraffin, 1.1; coke, nil, —a much easier oil to transport than what is being obtained in Taranaki at present, with 10.3 per cent, of paraffin.