The Wanganui Chronicle. THURSDAY, DECEMBER 15, 1949 NEW OIL RESOURCES

Wanganui Chronicle, 15 December 1949, Page 4

The Wanganui Chronicle. THURSDAY, DECEMBER 15, 1949 NEW OIL RESOURCES

"piIE development of new oilfields in the Canadian province of Alberta promises to turn the Dominion of Canada into a major oil-producing country. It is to be hoped that the oil of that territory will be of a high octane content as that is the fuel which is required by fast travelling aeroplanes. But whether it be of the highest or not, the production of crude oil will alter the whole of Canada’s economic position. Half a century ago Canada’s outlook was conditioned by the wheat production of Ihe Prairie Provinces. This was exported to the United Kingdom together with a large apple crop. Canada is fast becoming one of the world’s great manufacturing countries and to develop further in that direction it is necessary to be able to establish larger credits, particularly in the United States of America. Oil has the. advantage of speaking all languages and being acceptable in all countries. Hence the country that, can produce crude oil has the capacity to establish credits anywhere in the world.

Immediately crude oil is discovered in sufficient quantities it is possible to go a step further and establish a refining industry. This, in turn, provides not only volatile spirit, but also crude oil which, in the United States of America, has shown a capacity to challenge motor spirit for first place in the list of economic significance. Heavy oil is the fuel for Diesel engines which, on present showing, are the most efficient power units for heavy haulage operations. Heavy oil is also used for domestic furnaces in the United States. It may be that in New Zealand domestic heating will be provided by oil fuel in due time. That development, however, depends upon the proximity of this country to a base oil supply. The most promising field other than Canada appears to be within the Suez Canal basin. There have been interesting discoveries and developments in Arabia and evert in Egypt oil strikes have been made. Now the prospect is that Abyssinia will contribute to the world’s oil supply as drilling operations have commenced in that country. While this part of Africa has up to now been disappointing in respect to metals, it is possible that it will soon have an exportable product. The development of -oil production in the Middle Eastern countries is likely to have marked influence on current history in those lands. The Middle East is alive with a new ferment, that of nationalism. This is a heady brew which has been too potent for peoples whose movement upwards has extended over centuries. The Middle East countries remained static for a long time and seemed destined to remain so beause of their poverty. Now they promise to be able to draw tribute from the world for the oil that is under their lands. What will they do with this new and easily won wealth? What, indeed, in view of the nationalistic spirit that runs so strongly in their hearts and minds! A sound view would dictate that a country which has an international product should strive to sustain a condition of world amity which would give to that product a world market. But while this is a long view the promptings of a nationalistic sentiment are near and the long view too often suffers when it comes into competition with the short view with.its more easily recognisable but possibly illusory profits.