OIL IN NEW ZEALAND

Greymouth Evening Star, 1 November 1939, Page 12

OIL IN NEW ZEALAND

MR. WEBB’S OPTIMISM

“I have hopes that they may be drilling for oil not far from Grey- . mouth in the not distant future, l am sufficient of an optimist to teel thav there is a good chance of finding on in New Zealand. I would rather bet a few bob that way than on the best thing at the races next week. These remarks were made by the Minister ot Mines (Mr. Webb) in the course ot a reply to a question raised by the Mayor (Mr. F. A. Kitchingham), when la deputation from the Greymouth Borough Council waited on the Minister in the Council Chambers, last ' evening. After extending a hearty welcome to Mr. Webb, the Mayor said that, before coming to the question about which the deputation wished to see the Minister, there was one matter of general interest that'he would like to mention. The recent petrol restrictions had brought home the importance of the use of gas from coal for propulsion purposes. The question .was naturally one of peculiar interest to the Grey district. He did not know whether any of the Government Departments concerned had made any investigation • into the matter, but, in view of the fact that oil might not b& found in New Zealand, and in view of the possibility of our supplies of petiol being cut off by a major war, he suggested that the 1 matter was worthy ot consideration. Mr. Webb said that soon after the present Government came into office the question of coal gas for motor traction had been investigated. Two or three gas producing outfits had been tried out, but in view of the price of petrol at the time, they were not considered an economic proposition. However, recently the Industries and Commerce Committee hadi been dealing with the matter, and had on order several types of coal gas using > engines from England and France. These would be given a thorough test, | and, in the event of New Zealand not I being able to get oil, they might be I useful. In any case, he could assure them that the Government was probing the matter, and seeking the best information to be had.

With regard to the question of oil in New Zealand, Mr. Webb continued, he did not know whether it would .be found or not, but, at least, everything possible was being done to search for oil. Over 100 highly skilled men and the most modern prospecting plant was being employed on this job throughout New Zealand. Three oil companies were concerned in the prospecting work, and in the not too. distant future they should know what the result of this prospecting was likely to be. The companies were doing fine work, and it was not costing the Government or the people of the country a single penny. If oil were found in payable- quantities, it would be a more valuable asset, to New Zealand than all the gold that the dredges were producing.

PETROL FROM COAL.

NEW ZEALAND POSSIBILITIES.

[per press association.]

CHRISTCHURCH, October 31.

The possibility of New Zealand developing its petrol from its own coal deposits was discussed this evening by Dr. H. G. Denham, chairman of the New Zealand Council for Scientific and Industrial Research and professor of chemistry at Canterbury University College, in an address to the Canterbury Manufacturers’ Association. New Zealand coal was considered most suitable for conversion into petrol, Dr. Denham said, and at a cost of £12,000,000 (N.Z.) it had been said that the necessary plant could be set up in this country and could produce petrol at a cost of 1/- a gallon. The enormous developments of the internal-combustion and Diesel engines bade fair to threaten the world's supplies of petrol, said Dr. Denham. The demand was growing and the resources were shrinking. For that reason much attention had been given to substitute fuels. Much had been done since the war in extracting petrol from coal. This development, said Dr. Denham, had made remarkable progress since the first commercial plant, using brown coal, had been begun in Germany in 1927. American and British interests had also taken an active part in securing petrol. In England there was now a remarkably efficient plant capable of recovering 150,000 tons of petrol a year. A sample of New Zealand coal had been sent to England, said Dr. Denham, for testing for suitability for petrol extraction, and officials of the British company had said that it was the best they had ever treated. “Whether we shall ever get the plant in New Zealand is another question,” said Dr. Denham. “Personally I think it must come.”

Care would have to be taken, when New Zealand came to produce petrol from its coal, about the location of the plant. No doubt local interests, such as those on the West Coast, would seek to have the plant in their province, but it had been held as of vital importance by the British experts th?t the plant should be in a zone free ot any earthquake danger. The process was so productive of explosive materials that an earthquake might mean the loss of the whole plant. Efficiency in the production of the petrol had now reached a stage in which, by weight, 65 per cent, of petrol was being extracted from the same quantity of coal. That percentage, however, was still being improved, and New Zealand had been advised to wait until it could obtain the advantage of these further improvements.