SEARCH FOR OIL IN DOMINION

Southland Times, Issue 23921, 13 September 1939, Page 4

SEARCH FOR OIL IN DOMINION

BIG SUMS SPENT ON PROSPECTING BORES SUNK ON SEEPAGES SELDOM PROFITABLE Contrary to popular belief bores sunk on oil seepages are very seldom profitable, according to Mr R. J. Laurenson, of Dunedin, who gave an address on oil prospecting at the weekly luncheon of the Invercargill Rotary Club yesterday. Mr Laurenson gave a comprehensive account of the search for oil now in progress in New Zealand and conveyed an idea of the huge sums of money that were spent all over the world in the search for a product which he described as of vital importance in warfare. In the last war, he said, the British Fleet used 9,000,000 tons of oil, and there was every likelihood that it would use very much more than that,in the present war. The finding of petroleum in New Zealand, Mr Laurenson said, would bring in its train refinery works which would give employment to hundreds of New Zealanders, and make the Dominion independent of foreign supplies. An export tax would also go a long way to removing the -’orries of national finance.

It was said by experienced miners that “gold is where you find it,” but paradoxically speaking that did not apply to oil. Wells sunk on the site of seepages had seldom been payable. Trained petroleum geologists had searched the world for formations that would lead them to suppose the existence of oil, and as far back as 1917 geologists had conducted surveys of New Zealand. In the North Island in particular were bores sunk in the vain hope, in most cases, of finding oil.

It was not til] 1930 that something was done, when a survey was conducted over the whole of New Zealand. About 70 per cent, of New Zealand was identified as non-oil bearing. The party settled on a portion of the North Island about 4000 square miles in extent, to the north of Gisborne. Money was made available to conduct a two years’ survey round that area. The ’ survey was begun in 1932 and took two years. A laboratory was set up in Gisborne. Some of the most

prolific countries in the world as far as oil was concerned were highly volcanic. The total oil production area in California was only 257 square miles, so they would see that in the area set aside near Gisborne there was every possibility of oil being found.

SEDIMENTARY ROCKS , Mr Laurenson said the geologists were Jooking all'the time for sedimentary rocks which were associated with the formation of oil. These were crushed and examined for fossilized remains. From that evidence they could find whether the rock had been associated with the formation of oil. The next step was to look for a “cap rock, which might be several thousand feet below the surface. The job was to locate that rock and, if possible, put the bore down the middle of its dome. The rock formations which contained oil, however, were not all of that type. That survey took two years and cost the greater part of £100,000,. without a hole of any kind being drilled. The geologist with reasonable certainty could locate cap rock, but he could not say whether oil was in it. Drilling was so costly a business that they could not afford to drill too many “dry” holes. He mentioned a bore in Texas which had been sunk 13,000 feet at a cost of £lOO,OOO. Gangs of geologists on the job reduced the risk of failure to an absolute minimum. The site which Was selected for the first well in New Zealand was <;bput 30 miles inland from Gisborne. Before this was sunk development work had to be done, a road was made for three miles to carry a load of 17 tons, a bridge was built and accommodation had to be provided for the men. The derrick was about 140 feet high and was capable of handling 300 tons. The power consisted of three 250 horsepower Diesels. All wells today came in under control, as the bores were packed with mud which was sucked out as the oil rose to the surface. There were 14 parties, comprising 81 men, working between Taranaki and Gisborne, and it was stated that up to £1,000,000 would be spent. The efforts would not cease until it was shown whether oil did or did not exist.