N.Z. OIL DEPOSITS

Grey River Argus, 13 August 1937, Page 9

N.Z. OIL DEPOSITS

STATE OWNERSHIP i Not State Monopoly I Per Press Association], AUCKLAND, August 12. > The State ownership of the noten- ■ tial oil resources in New Zealand does 1 not necessarily imply a State monop- • oly of actual production of oil in the Dominion. This was made by Mr A. 1 Tyndall, the Under-Secretary of Mines ■ when asked to amplify the statement L made in New Plymouth by Hon. P. ■ C. Webb, Minister of Mines, regard- ■ ing the Government’s intention to encourage scientific prospecting for oil. ■ “Mr Webb’s remarks regarding the nationalisation of potential oil resources are being misinterpreted,” said Mr Tyndall. “Publicity has M een given to the suggestion that the Minister’s statement tends to discourage private enterprise, on the grounds that oil is to be nationally owned. The real position is that no major private oil interests will embark on a comprehensive drilling programme unless the national ownership of the oil deposits is first established.” It was gathered from Mr Tvndall’s remarks, in conjunction with the Minister’s statement, that legislative action is to be taken to transfer to the State the ownership of any oil which may be found on any type of land in New Zealand. With State ownership thus established, there can be no exorbitant claims by private property owners for the value of oil found under their ground. In that event, the way will be open for the Government to allow oil companies to carry on the industry under a license, on the 'payment of a defined royalty to the State.CANADIAN OIL. Ranchers in Southern Alberta, Canada, 30 years ago discovered that a molasses-like fluid, oozing from the ground, was an excellent sheep dip. Later, expert investigation showed that the sheep dip contained naphtha, which meant oil. In that one field, Turner Valley, a few miles from Calgary, £25,000,000 has been invested in the past 12 years. Nearly half the investment has been yielded by recently discovered wells. Yet to date only a small portion of 15,000 square miles of oil-bearing land has been worked. In the meantime, the city of Calgary went through a period of boom. People mortgaged their homes to buy oil stocks. Then came the war and the post-war slump. But these did not sdim Calgary’s faith, and, one day in 1924, a well' came in with tremendous volume. Holders of scrip commenced to talk of dividends of 20 to 30 per cent. That well, with its associates, to-dav is capitalised at £12,000,000. British capital was given first option, but declined, with one famous exception. Imperial Oil came, saw, and developed every holding on which it could spread its capital. Its interests now are valued at £20,000,000. American capital is also a factor in opening this rich field. Between them they have created a rich Canadian industry and partly solved an Empire quest.