PETROLEUM.

Taranaki Herald, Volume LXI, Issue 144086, 3 May 1913, Page 3

PETROLEUM.

OIL v. COAL. For many years a large proportion of the coal mined at Newcastle (N.S.W.) Las been exported to the West Coast of South America, but, according to recent advices, oil is becoming a very serious competitor with ooal, and it is feared that the oversea trade of Newcastle will in consequence suffer to a considerable extent. A Sydney firm (the Herald says) has just received a letter from Valparaiso, dated March 8,, in which it is stated:— “Tonnage has been so fearfully scarce of recent times that naturally Australian trade has suffered considerably in consequence. Unfortunately all this means difficulties with supply, and is helping competitors with their oil. There can bo no doubt that Australian trade will suffer .greatly in time from this oil competition. The consumption of oil in the northern provinces is increasing very rapidly, and we think it is only a question of time when'the whole of the nitrate ‘oficinas’ will use nothing else. It is estimated that, by the end of this year, 70 per cent, of the ‘oficinas’ will have oil furnaces installed, and will be consuming oil fuel. Tho oil is brought from California, and contracts have been, and are being, made on the basis of 40s per ton, which naturally works out at a very much cheaper rate than oil. Peruvian oil does, come to Chile in fair quantities; but Peruvian oils are light, and of very, excellent quality, and do best for tho oil tank steamers to take, to California for refining purposes, as they arc very rich in by-products. Tho trade now is, oil from California to tho Chilian coast, and on the return voyage, steamers take as much as they can get of Peruvian oil to San Francisco, to be treated in the way mentioned. Oil has been discovered in the southern parts of Chile, but has not yet Imen worked. The most promising deposits that have been tapped are in tho island of Ghiloe. This position is now being dealt with, and we think it will not bo long before Chiloe is shipping oil. It has also been discovered in the Straits of Magellan; and there can be little doubt that the whole of the southern portion of Chile is oil-bearing country.”