DEVELOPING OIL IN NEW ZEALAND

Press, Volume LXXIV, Issue 22358, 23 March 1938, Page 10

DEVELOPING OIL IN NEW ZEALAND

AMERICAN PRODUCER’S VIEWS

TO MAKE INQUIRIES IN TARANAKI

While it was definitely known that there was some oil in New Zealand, «aid Mr R. T. Colter, an Aiperican oil producer who is visiting Christchurch, he would like to be more hopeful of the prospects of developing it. If prospects were at all promising, American interests would not be slow to participate in its development. Mr Colter, who arrived in New Zealand at the end of last week, has not had an opportunity yet to visit those parts of the Dominion where oil is known to be; but he said yesterday that he was looking forward to his return to the North Island, when a Wellington friend would take him to Taranaki to make some inquiries, . To facilitate the development of oil, It was essential that certain geographical features should be present In the country to be worked, and ihe volcanic nature of the country in New Zealand is not considered to favour the sinking of wells to tap the deposits. Mr Colter said. It was a very expensive business to sink a weil and the development of the industry had to be done properly or not at all. It was necessary for the oil to be lying in sand and for the formation of the country to provide level strata. American interests had spent a large sum of money in efforts to make use of the oil which was to be found in Australia, said Mr Colter, but they were not successful. If New Zealand oil could be developed, he was sure oil companies from the United States would be interested. They had gone to all parts of America and elsewhere to get oil, and would be prepared to i'ome to the Dominion if there was a chance of a reasonable return from its production. "There are 333,000 oil wells in the United States, and they produce 3.350,000 barrels of oil daily,” said Mr Colter. This seemed a tremendous output. but the demand was equally great, and oil was a commodity which was quickly turned over. The crude oil which flowed from the wells was sent through pipe-lines to the refineries where a series of processes produced petrol, kerosene, vaseline, crude oil for Diesel engines, and other by-pro-ducts. for all of which a strong demand existed. To show the expansion of the industry to meet growing needs, he quoted returns which showed that 1164 new wells were'sunk in America during 1937. drilling going as deep as 13.600 feet. Mr Colter, who comes from Los Angeles, is interested in about 200 wells, situated in several fields.