SHALE OIL

Grey River Argus, 11 September 1940, Page 7

SHALE OIL

SOUTHLAND DEPOSITS. INVERCARGILL, September 10. The development of the shale deposits at Waikaia was the subject of a letter which was received by the executive of the Southland Progress League at a recent meeting. The letter was received through the Leader of the Opposition (the Hon. Adam Hamilton), from the Minister for Defence (the Hon. F. Jones), who wrote for the Minister for Mines (the Hon. P. C. Webb). “The official reports indicate that the shale at Waikaira is very similar to the Orepuki deposits, both in composition and yield of oil,’ stated the letter. “The development, of the Newnes field in Australia has focused attention on the local deposits of shale, but it must, be remembered that the Newnes deposits cover a very extensive area and offer some scope for substantial capital outlay. The data at present available indicate a field of only 1,000,00(1 tons at Orepuki and about 750,000 tons at Freshford. Again the Australian shale is of high quality, yielding about 100 gallons of oil a ton, compared with 40 gallons from Orepuki and Freshford. Thera is a further problem with sulphur, both Orepuki and Waikaia crude oil (produced from shale) containing about 1.80 per cent, whereas a gooa fuel oil should not contain more than 0.5 per cent, sulphur.

“The above were some of the factors which compelled me to reach the conclusion that, under normal. conditions the development of the shale deposits on an economic basis wa's not. possible. Under war conditoins, however, it is essential to examine the question more closely to determine the value of the deposits from the emergency viewpoint. “Arrangements have already been made for a drilling programme to be undertaken at Orepuki and Freshford, and geological work on the Cambrians and Nevis deposits will be completed by December. Further laboratory work on the Orepuki shale is being carried out in Wellington and samples have also been sent to Australia.” The letter was received.