NEW OIL FIELDS

Otago Daily Times, Issue 22779, 15 January 1936, Page 3

NEW OIL FIELDS

A GROWING NECESSITY SUPPLIES NOW FALLING, Within a few years it will be necessary for the oil-supplying companies of the world to open up new producing fields, stated Mr E. A. Callanan, chairman and managing director of the Vacuum Oil Co. Pty., Ltd., Melbourne, on his arrival in Auckland. He said in an interview that already the crude oil prices had risen anything up to 150 per cent., and that the falling off in supplies would be noticeable within the next two years. It was particularly noticeable In the Asiatic and European fields, he said. To take the place of these fields that were failing gradually, the companies had geologists working throughout the world. During the past three years, said Mr Callanan, his company had spent thousands of pounds investigating the prospects in New Zealand, and four geologists, two of them eminent in their profession, had being going over the country. His company was anxious to assist in opening up new fields, and if oil could be found in New Zealand in sufficient quantity it would certainly be taken advantage of. At present about 85 per cent, of New Zealand’s supply came from the Netherlands and Sumatra, and it would pay bis company to produce oil in New Zealand for the Dominion market. There was a great misconception amongst those not intimately connected with the industry concerning what constituted a payable supply, said Mr Callanan. A well was opened which gave anything from 15 to 50 barrels a day, and it was considered to be a great find. Amongst the big producing companies, however, it was considered that 1000 gallons a day was a worthwhile well. The latest drilling plant for a well, for instance, would cost in the region of £25,000.

Referring to conditions in Australia, Mr Walton said that 1935 had been the Commonwealth’s best year in the past six years, and the indications for 1936 were excellent. The oil industry was a good indicator of prosperity, and it was notable that in 1935 the total sales in Australia were up by 12 per cent. The banks, too, were looking for a “ bumper ” year. Judging on the figures of his company, New Zealand, too, had prospects of an excellent year. Here the returns were over 10 per cent, above 1934 rates.