Optimistic Reaction To Announcement

Press, Volume CIX, Issue 31943, 21 March 1969, Page 1

Optimistic Reaction To Announcement

(New Zealand Press Association)

WELLINGTON, March 20.

The announcement that crude oil had been brought ashore from Maui 1 was greeted with optimism and enthusiasm by political leaders, manufacturers and others.

The final tests for crude oil at the Maui 1 site did not begin until yesterday, and the crude oil did not come ashore until 11.30 p.m. last night. The Minister of Industries and Commerce (Mr Marshall) said: “This is the best news we have had for a long time.” He said that if the strike was an indication of an oilfield it would make a very substantial contribution to the economy, save overseas funds, and give a significant boost to the national development programme. But enthusiasm about the discovery, Mr Marshall said, must be tempered with the knowledge that much work had to be done in appraising the field and getting it into production. “It is particularly encouraging that the field looks like

producing gas condensate in oil. Gas will be a very valuable addition to the gas field already discovered at Kapuni and in the process of being developed,” Mr Marshall said. EFFECT ON POWER This would give stability to the gas industry in the long term, Mr Marshall said. It could also have a significant effect on the development of New Zealand's power resources and the timing of the introduction of nuclear power. If the new gasfield was ' proved, the introduction of nuclear power might be deferred, Mr Marshall said. At Rapahoe, near Greymouth, the Minister of Mines (Mr Shand) said the oil find was encouraging news. “It was known previously that traces of black oil existed, but they were not at the time considered significant,” Mr Shand said. While the news was encouraging, it still had to be proved that black oil was there in sufficient quantities to justify the very large and expensive installations necessary to recover it. MR KIRK PLEASED The Leader of the Opposition (Mr Kirk) was visiting the Kapuni natural gas field when told the news. He said he was pleased about it. A significant find of oil would be good for the whole country, and the discovery was a credit to the people who had persevered with the exploration. “I only hope that if there is a commercial field there will be no inordinate delay of the sort experienced with the development of the Kapuni natural gasfield,” Mr Kirk said. STRIKE “EXCITING” The president of the Manufacturers’ Federation (Dr H. C. Holland) said the announcement opened new and exciting possibilities for the economy. “New Zealand has already entered a phase of dramatic industrial development, but the addition of oil to our stockpile of natural resources can give terrific impetus to the whole pattern of growth,” he said.

“It can speed the launching

of a petro-chemical industry and also save at least part of the tens of millions of dollars of overseas exchange that we spend on oil every year. “The discovery of oil is an immediate reward for the vision and faith of the people who have made substantial investments in the search. “It will encourage them to press on with the further exploration and investigation which is required,” Dr Holland said.

One of New Zealand’}' biggest users of oil is the Railways Department. Last year locomotives and the rail ferries used 40m gallons of diesel. 100-YEAR SEARCH

The search for oil in New Zealand has continued more than 100 years since the first discovery, a small one, in Taranaki. This find is still New Zealand's only commercial source of oil.

Many other areas have been probed by overseas and New Zealand interests, until today fruitlessly, at a cost of millions of dollars. At present the search is continuing in areas around Kaikohe, in Northland, and in Hawke’s Bay, Waikato and Canterbury.

Search Off Patea (N.Z. Press Association) WANGANUI, March 20. The American oil survey ship Bayou Chico began work in Tasman Petroleum, Ltd’s 4300-square mile concession off Patea yesterday. The managing director of the company (Mr T. J. McKee), said the survey was a continuation of investigations started in the area five years ago. The zone extends from Patea to Opunake. If the survey is promising, the company hopes to begin drilling by the end of the year.