OIL RESOURCES.

Auckland Star, Volume LXVI, Issue 223, 20 September 1935, Page 3

OIL RESOURCES.

PETROLEUM IN COAL. NEED FOR LEGISLATION. STATEMENT BY ME. FORBES. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Thursday. "It is the Government's intention to undertake such geological and geophysical explorations as are necessary to follow up the indications and explore the extent to which the oil resources are likely to occur in various districts of the Dominion," said the Prime Minister, Mr. Forbes, in the House of Representatives to-day. "Already a considerable amount of exploration of this character has been carried out by the New Zealand Geological Survey and overseas companies. These districts contain welldefined geological structures which must bo drilled to test them adequately. Drilling in a new country like New Zealand is costly and the Government is at present seeking expert advice as to whether this expenditure is justified.

"As regards the production of petroleum from coal, the Department of Scientific and Industrial Research has at the present time a highly qualified official in England who is watching developments in regard to the hydrogenation processes, having in view the possible utilisation of the Dominion's coal resources for the production of the futOre supplies of petrol. This officer, having already carried out considerable research work on the characteristics of New Zealand couls, is in a position to acquire the fullest knowledge of all the latest developments concerning coal hydrogenation.

"The Government is fully aware of the need for legislation governing the prospecting for and development of flow oil resources of the Dominion and during my recent visit to England opportunity was taken to discuss the British legislation with leading authorities. The question of introduction of similar legislation in New Zealand is at present receiving consideration."

The statement was made in reply to an urgent question asked by Mr. \V. J. Broadfoot (Government, Waitomo).