OIL PRODUCTION.

Auckland Star, Volume LXVIII, Issue 235, 4 October 1937, Page 4

OIL PRODUCTION.

INTEREST IN TARANAKI. NEW COMPANIES FORMING. (By Telegraph.—Special to "Star.") NEW PLYMOUTH, Saturday. As a result of the announcement of Government policy in promoting the search for oil in the Dominion there has been special activity in Taranaki. At least three new companion arc to be formed, one with headquarters at Stratford and two at New Plymouth. A big overseas organisation, it is stated, is pre" pared to spend £1.000,000 in the search for oil when safeguards are provided by legislation. Owing to the extra cost of drilling, companies are reported to feel indisposed to operate in New Zealand without some legislation that will protect them after spending so much in new deep well drilling. They want a large area of drilling country in the vicinity of anv well thev put down. It is understood that the Government is going to bring in legislation that will give companies some control or security in this direction. At present the Moturoa Oilfields, Ltd., continue to produce crude oil which is being refined into benzine and by-products One of the latest \e«- Plymouth projects involves the taking over of the plant at Omata used some years ago bv Coal Oil, Ltd.