OIL FROM SHALE.

Manawatu Standard, Volume LVI, Issue 64, 13 February 1936, Page 7

OIL FROM SHALE.

POSITION IN AUSTRALIA. CANBERRA, Feb. 12. Yielding to agitation in Labour circles some time ago, the Federal Government appointed a committee to investigate the shale oil. at Newnes in the Litligow district. That committee lias now reported to the Government that on economic grounds the establishment of a shale oil industry- is not warranted and that it could only- he justified if at all by national considerations. The Prime Minister (Mr J. A. Ly-ons) emphasised that, according to a statement bf Imperial Chemical Industries, Ltd., the production of petrol from coal is not yet practicable unless the Government grants exemption from excise or provides a subsidy. He added that the Federal Government has received encouraging reports regarding the production of well oil in Australia and New Guinea. NOT THE CONCLUSION. SUPPLIES FOR DEFENCE. Received February 13. 10.55 a.m. SYDNEY, Feb. 13. The Sydney Morning Herald says the announcement that the committee of experts found the exploitation of the Newnes shale for oil production not economically- warranted does not mean that the Federal Cabinet has come to a final decision upon the matter, and certainly it must not be accepted as an announcement that the Newnes scheme has been definitely abandoned. On the contrary, the Federal Cabinet will probably consider whether a scheme should bo proceeded with for the production of motor spirit and fuel oil in order to ensure a source of supply- for the defence forces of Australia.