Bay of Plenty Times. FRIDAY AUGUST 12th., 1932. OIL IN NEW ZEALAND.

Bay of Plenty Times, Volume LX, Issue 10886, 12 August 1932, Page 2

Bay of Plenty Times. FRIDAY AUGUST 12th., 1932. OIL IN NEW ZEALAND.

That mineral oil exists in New Zealand in reservoirs and in payable quantities, admits of no doubt, for occular demonstration of this interesting fact is afforded by the experience of the Moturoa Oil Company. For several months now, day after day, week after week, and month and after, month, the flow from the solitary well that the company has been operating, has ranged from 120 barrels to 150 barrels per week, aggregating over 600,000 barrels. This output is described as self-flow, something like the principle of the artesian well. The oil is not brought to the surface by pumping, but is forced up by gas pressure. From the output of its single well the company has been able to meet running costs, but those who provided the capital have received nothing so far. An oil field does not permit of dividends being paid to shareholders on the yield of one well; there must be several wells. The management of the Moturoa Oil Company recognise this, and is appealing for more capital, and it is to be hoped it will succeed in securing what it requires. New Zealand capital appears to be rather diffident about supporting local ventures, consequently it is necessary to interest foreign capital. The Taranaki Oil Co., No Liability, was originally a joint stock company, floated in Melbourne, most of the original capital being found In Australia. This Company spent thousands of pounds in geological surveys and boring for oil and eventually converted the concern into a “no liability” company. It continued operations mainly near Gisborne, and now it appears that the company’s oil bearing areas are to receive a thorough scientific test. The Taranaki Oil Company has made satisfactory arrangements with the Vacuum Oil Company, which, as we all know, is an American concern with world-wide ramifications. Under the agreement, the Vacuum Co., is to carry out, at its own cost, a geological examination of the properties of the Taranaki group. For this purpose two experienced geologists will arrive in the Dominion during the next .week or two. This arrangement has, no doubt, been made possible by the success achievd by the Moturoa Oil Company, and this concern is one of the Taranaki group. The Moturoa Oil Company is to bore another well, a project which has been in the minds of the directors for some considerable time. The oil-bearing areas in the Dominion and belonging to the Taranaki group will now receive a thorough examination by oil experts from the United States. The only regret that can be expressd is that it is American capital and enterprise, and not British that we have to rely upon. We have to realise that capital knows no country, frontier, race or creed. It is cosmopolitan and will go anywhere where it can be profitably employed. American capital is just as good as the capital from anywhere else, and the gain to New Zealand is that there are prospects of a new industry being developed that will employ more labour. If there is anything New Zealand wants very badly it is new industries, and just now oil would probably prove the most welcome of them all.