00

f~-O-z...o

REP 0 R T

by

DR. WADE

on

\

6001.'01

"The Properties of the Railton-Latrobe Shale Oil Co, N.L."

Ir/~ .

•

• ,. . 1R ~ PO. If

600(\02

On the properties of the Ra1lton-Latrobe Shale 011 Co. B.L.

ARTHUR WADE D.Sc.(Lond.) A.R.C.Sc •• A.K.I.K••••••0.8.

1. BUSUiESS.

2. SITUATIO •

The Company is at present m1n111& Oil Shale of the

variety known as Ta...nite, and 1s d1stillinc ~e .amefor petroleum product. 1n plant erected for th1. purpo.e

on its propertie••

The properties of the Csmpany cons1st of two blocks of

U1neral Leases held under the Kin1ng Act. of 'fa88&ni~_

in the vicinity of the town of Latrobe and the town.h1p

of Railton on the Kereey River and extend1n& fr...aTan

to ten miles due south fraa the port of DaTOD,pOrt on the

narth coast of TaBm&n1a. The Wes t Tn Railway (OOT rn-

3. nTJDl'l'.

ment line I£unceston-Burn1.) runs parallel wi~ the prop_

erties and about 1 mile to the west of th.m.

The first block of le•••• is on the east bank of the

Kersey about 2* mile. S.E. from Latrobei1fI/" ".u~

and areas~are as follows:-

'!'he number.

4164 K - 2,63996 K - 200399, • - 320

acres••

The second block is .ituated about thr.e aila. to ~a

sou~ of the fir t and about 1 mile to the north .e.t

of the railway junction at Railton. It cons1st. of:-

acres••••

The total acreage i. 1.482 acre. of land carryil1& 011

shales held under a coneolidated lease which e1aplifle.

the w rk1ng so far a. the labour ••IDI......,

cerned.

con-

•• 600(\034. THJi: SHALE

a. DANTITY.

The acreage glven does not colnclde exactly wlth the

exteni of ground und.rlaln by the 011-shale on the proper-

tlss mentloned. Th. materlal. 11e ln basln. betwe.n outcrop.

of schist and basalt whlch occupy some part of the are...

Mr. W.H. Twelvetree., the Governm.nt Geologlst for TaBDanla.

spent a considerable time ln an able investlgation f th.s

Er~le areas and has reported to the Governm.nt on their geology

and economic pot.ntlalltl••• In hls r.port Mr. Y. H. !welv.

tre.s estimates the actual area. underlaln by workable shale on

the varlous propertles. H. state. that the.e .sttmat • are not

for the purpo•• of company flotatlon but for the lnforaatlen efI:

the Government.ln preparlng th m he make. 11beral deductlon.

for the thlnning edges of the .hale bas In. and other interruptionS

to working which would cause 108•• Taking the results so ob-

talned as a basis I estimate the tetal area actually occupi.d

of workable ahale on the properti.. QWDed by this company on the

ea.tern bank of the Kers.y to b. about 430 acr•• out of the 776acres. On the western sld. of the X.r••y it ill amount to about

,00 acres out of a total of 700. or in all 930. acr•• out of the

1420 acres held in leas•• Th. shale is pre.ent in a single

seam hich varies from a few inehe. to about 7 f ••t in thi ••••

In making the ~bove e.t~te••bale less than about 20 inches

ln ~lcknes. ls neslected a. unworkable. The .e.. ln lts

thicker parts ls lnterrupted a. a rule by a cl~ band 1 te 2

feet ln thickness occupylng a more or les. centrally placed

parting wbi.h dlvldes it lnto upper and lower portions. Al

though this hal to be deducted fr_ the total thickn... of ~•

••_ in est1Jll&t1ng quantiti••• the occurrence of thl. band hal

U-!h. Tamaanl.. Sbale Yleld. of the x.reef Di.trlct,- Ta.-anian

a.ol. Burv. Bull. No.ll 1912.

903 600(\04

its adTantage. in the winnlng or the ehale underiround. It

11 .0&411$ di.tiDi\Al.bed rrom tbe .hal. aDd 1••a.ily .ort.,.

:h'0IIl obeerTatlone -U ln the C ,a~'. mlne•• worklnc. au

bor.. on the east.rn ~lock and from the eTid.nce .uppli.d

by quarrles and bore. en the we. tern side of the Ker. y the

aTe~e thicltD... of the workable .halo W1d.rqiDl tbe t tal

930 acr•• before _ntlono4 can be taken as 4 fe.t. an e.t1aate

which 1e 1n my opinion certaln to be .....hat .20. .4 a.

work prO&r••••••

1Ir. '!'welT.tree. tak•• the .pHit1c iraT1ty of the shale a. 1.6

_d adopt. the 4 ft aT.raee in hi. calClllatlou. Be 404uat.

between one-quI'tel' _d ....\hird of t.he tatal _OWlt of .hale

for 10•• 1n worltiq and fer falllt •• pinch•• etc. 1Ibiob i.&

qUite a. much as can"rea80nabl, M deducted for .Ilch cau••••

B. th.n arriv•• at 1.100 ton. "I' acr. a. the proMbl. t0DDaS.

p.r foot of 80&11I. talc thi••~ar" t.ho prMabl. _ouat

f shalo aTailabl. for d T.l on tbe C~UV''. 1....

_OWlt. to ~,~80.000 ton or ~r~••illion to•••

III aakini t.h••o oalculation. it 18 ...u.d that ta __10 i.

a horodntal .heet. OIl t.h...~ .i4. of the K.r••y hw­

.T.r th.r. i. _ .".orTa 1. 4i» to tho north·...t of aDout 100

whilo on the western 8148 tlle 1'1q. haTe proTed t1:I&t the ~

.hal. 18 foldo4 into a U.Un t .,.c11_1 CUT.. !hi. dlpp1nc

and toldlD& will appr.clably incr.a•• tbe esttaate4 quantiti••,

but ~t milllon ton. can b. couat.d on a. a workiq b&81••

b. Phy.lcally tb••halo 1. a fineq 1_inat84 mat.rial.

brown In coloill', ••ctile, tollib and re.i.tant to weatariDi

ac. oie.. It contain. a 1 I. proportlon of oarbonaoeou.

_ttor whlch lanUe. read1q and 11 capable of b.iDl con­

T.rt.d into petrolewa prodllct. b,r d••tructiT. di.tillation.

It 1. not n.oe••ar" for tho pu~o.. of thl. r.port to entor

lnto the qllestion of it. orllia. !hat i. fUlly dealt with 1m

a r.port b,r 1Ir. !welT.tr.... It eometimo. oontain. f ...il.

of marin. org_i ""~ .."04 1D P7rite., 1Ibie acco t.

~o. cit p. Io. 1

600005

for 80me of ~ .ulphur pr•••nt in it. producte and for the

Tariabi1ity of the sUlphur cont.nt•• Your analy.e. mad. by

Mr. ~.7. Ward, GOT.raa.nt Analy.t, quoted by Mr. Tw.1Tetr••••

ehow the compo.ition of the lhal. :-

Section 2540 )lShaft lIo. 2

"ction 46197 Ke.p'. R&7'.Richard'e ~arry Jreehold Yre.hold.

)lineral "tter

Volatile },latt.r

Fixed Carbon

)l iature lo.t at212e Y.

Sulphur----.l~eld of Oil perton

58.00

37.30

3.40

50 Gal••

0.90 0.60

58.60

37.70

3.00

0.70

50.30

Mr. TwelTetre•• not.s that the .ample from Richard'. ~ry

includes .ome of ~ unproduotiT. claJ b , hence tlla low

quantity of oil produc.d. The .ulphur cont.nt i. d.t.rmin.d

in only one .ampl. and i. c.rtainly abaTe aT.race, .~ • .-pl••

te.ted in the Company'e laboratory SivinS le•• thaD ~ of .ul-

phur. The aTer~e .ulphur cont.nt determined by lMa,7 .xperi-

ment. 'lIJIq be taken a. 1.25~•• "hioh 1. nll below the .taJI4ard

now adopted in the .pec1f1cat10n. for the Br1t1.h A4mirali~

wh1ch 18 3%. In the actual proce.. of di.t111at10n on a

cOlllllerc1al scale ...ple••ublllitt d by the PIlnpher.ton Work.

in Scotland y1elded about 41. Sallone per ton. Di.tillation

in the Company'. own retort. iiv••• t-11ar r ••ult., the .bale

provini to be r..-rkably unifora 1n quality when di.till in

quantity.

Durins my 1n.pect10n of the.e propertiee a teet was made by ue

in the exp.r1Dlental retort belong1ng to the CCllliPaIIY. 6t (e1x

and a half) c"t•• of ~. were diet111e4 and y1.14.d 120.25 lb••

of crud. Oil, corre.p ins with a product1on of 39.10 sall ne

'!'he diet illation wae carried out contiDKouelyp.r ton of shal••

day and night. The

able than by d&¥.

Loc. c1t p. 67do. p.93do. p. 94

.mearins 10•••• by n1ght w.re more con.1der-

~.

600{\OG

Thl. wa••hown by the tact that 2cwtl. dl1tl1lod by .., ylol..&

39.25 lb•• of crud. 011, whleb e.rr.opoDdI to 41.S lall De

.11 per ton. bon her. ~o wel'O 1..... ot both 011 aD4 ...

• that the aclGllUon ot .01'0 r.t1Dod .othodl of treatIM t ~Ui4'~

rOlult ln iroator piD.. It I qulto certaln that tho aTOI'

aco yleld ot crudo 011 per tOIl t ehale w111 ozoee6 40 pll ..

but tUllli that tipro al the aTO..... tIw C ..1&1& b. 1.

to produoo 220,000,000 ,al10.. ot cru40 011.

The crude 011 11 dark 011YO ,r••D ln colour and hal a pooullar

and charactorl.tlc odour. !be .pecltl0 iZO&Yl lfter t

It 0 Dtalao 11ttl.

or iD but hal &D aophalt1o baae.

doo. not .011dit,r nor dop••lt .011d cODetltutonto at ordl--r.r

teap.raturo.

plp. 11ne••

011 ~.s e.

It 11 th.r.t n acJalrabq adaptod for tl'UOf'er b7

Tho shal.. dl.tl1 .ore r.adlly thaD do \be Ic tcb..m;,..,

that the COlt ot dl1tl11 wlll b. lew.

IOGIIAU!' OJ' 'I'D pAT" J'DLD

~ofor. ioirli lnto .01'0 to

to do.crlb. brl.t1¥ the countl7 WIll.r wh1ch tM ehalo oeouro.

The Rlyer K.reey 1. the contr~ toaturo, wlndlna nort 40

throQlh a h11ly r.i1oD occuplod ~ tonotl ot tlDe t I' wlth

tlat alluylal plalne l1li4 1 I' 1'100. border tho rlTOr 11Y.

oy.r to ion.ral apolcultural papo.o. and apple er~". '!'M

1'1410. whi~h ue inYarlab1¥ well U.bor.d, run i.aeral17 1n north

&Del .outh dlrocUone aa4 ru.ly exe od )00 or 400 t.ot in NIlt.

ft. countl7 11 well watered ~ tho Ker"7 and lt1 tributar1e••

lyer noyor tall. &Del 1. naYliablo up to Latrobe b7 ...11

oo.an going et.am.rl. LUlor .t....r ••top ln tho ••tuary at

».Yonport.

6. aoLOGT.!be leoloi)' ot the aroa baa •","lYotre.. ln the I' ort a ad,y quotod, whlch 1. acouapanlM

07 otteetlYo i.olOllo01 .....

G.n.rally opeak1lli the aorta I r e. are e.-po.od ot

Pr.-Caabr1aD and Clllabrlaa eohi.to q_rtslteo aa4 cOllil...rotee.

6. 600f07

.l~~. and ln~ru.lon. of K•••••l •

.u.h of 'l'.rt1&17 &&e. Pato•• of h1p~ fold. B11url_

l~e.t ae eccur la plao... Ybe aaal. bed .oour. In .trata of

P.:nao-Carboaltero",.... whloh w Tld.at~ lald down in hall...

ell an old aad _oh d••",ud ,.1 10 .urfaoe onr whlob tM •••

'fbe llH. oonel.t ot ;y.ll...ud.to..... 4.to.....

aDd cOlIClo..rat••• tM ••1. It..lt ._.t~. coatalal.. p.lltll ••

derlT.d fr.. the old.r ~.cka• 1& the ••lD. 00

•11&1. tM upp.r baA. t. d to O'Y.rlap t.. lowe~ 0..... .0 that the

fl&11 .:neat .f tM abal••

.. tb. upp.r .Aal....~..n. &ad lla~l 18 a.o•••&17 ta 41.coT.r

It. 1~1t•• !hl. has II n d... t. .~ .xt••t

••1'1•• ",sually dlp. I ••tl;y t. the ••~. at allout lOa &ad 1. 1•

.... plac•••...-bat tald.4 aDd faulted pro_ll17 4 • t. 41ft.r-

.... f.ultlal 18 aat ••T.~•••0ueJa ta aff.ct the aalae "T.~"l;y,

r.ther lt 1. ll.a.flo1&lla ao.t e.....taa. the taalt~ keep

UIe ..18 .arl....tfid. t17 UU' t••vf... to da wltb

the aco•••*", fo~ .xpen.ln.bat .1nklft1 a the fold~ .D&bl••

the _t.rl.1 to b. eco 10.117 al...4 b;y IraTltatl•• m.th...

I &441tlon to the all T... tl

d 11pl1tlc clay. are pn...t a tb. area ud all lal • alt.

000 y the flat. bord.rlnc the rlT.r.

7. •

'!'be thlekneB. of the .hal••_ -.k8. aln1ll& _ --7 _ttn. '!be

eUl'. are hard ..... u4 .IlUlel t17 well U t toa a 10H

ra.t. out at

tb. aln. by II'&TltaUa. at. a aourat••pee4, the t1&1l truok. l'1UU11ag

ut by thelr 0" w.lcht. tM Cllpt7 one. 0.17, uTal to 1"IID aa u u~

'l'~ber .",itable tn ala. purpo... allCMlDll. oa t. p~op-

11'&4·.

dralaH.

It al.a all.". ttl. a te • ettld••tl;y aM .eeaOldoall;y

.~tl.. and 1. ch--.17 I.t. 'file OY rburdea 1. a.t. t, rarel;y

••••dlna 100 f••t ••ufflcl.at to ke.p a 100d eo~ b"'t too Ir_t

to pa:nalt of actual quar271D1 1a ao.t c••••• !he pillar aad

• ta11 2.th04 1. at pr•••at employed aad 1. ll••t for the••

dit1one.

1 7. 600{\08

Th. cl~ b&Dd and wa.t. proTid•••ufflci.nt mullook for paok1aa.

Actual mlnlac 1. at pre.ont In procro.. on 4164.. !he CGa­

p~'. retortlna plant i. on tAB .... block about a q~arter ot

a no to the _.t. :aotween tho two i. a ri4a. ot .eIli.t OftI'

whloh tho Mal. 1. oal'l'l04 lI7 the __a of a oa1»l. tr~.

TU tot.al co.t ot minlq lnclu41q ..lntounc. of II1DO &D4

4ellTory t.o ro'.rt. do•• not exc.od 7/6 p.r ton at t.ho pro••nt tt.e.

A. tho work progr••••• &ad opoa. out thl. tilUr. ohould 1»0 r.4uc.4,

prol»&1»l,y to 1... than 6/- POl" t.a.

e. DISUIU!1Q1l.

'!h. C...·ny hoe boon worklac wl~ tour nrUI&1 &D4 t ~r horo.in­

tal ro'ort... '!he f01'lUr are u.04 tor tho ooar.o Droan .hol.

and tho latt.er tor tho tin.r sat.rial. At tho pro••at nt

t~r T.rt retort. ot aD ~roTed pattorD ar. in oour.o .t

con.tructlon. '!hl. typo ot rotort 1. ~ mo.t .uitabl. for the

purpo.e and .hould giT. good ro.ult•• At pro.ont tho ohalo 1.

broken by moana of a con. cruBbor. '!hi. i. not .~it'" to ~10

01&8. of matorial. '.nut oru.h... produot 1. too lrr.plar In .1••

&ad 18 accOIllp_iod by too much duot. '!'M beot rooulto would 1»0

.bta1no4 b)' ad t1DC a onoher con.i.Uaa of reTolT1JIC herl.ontal

cylindor••ot wlth t.oth whioh would broak tho ohalo lnto talrly

eT.n frapoat. abollt 4 inche. 8 l&&rO _d prod~eo a aiD .f

tho .sall.r .tuft.

ftoa tho pr...nt pl&Dt 10 c.-plot04 there will b. o1Cht T.rtl..1

aU f.~r horo.intal r.tort. capabl. ot dO&11q wi~ aore tbaa,1, tons of 1Ih&1e per d&¥. !he .hal. U.Ule rap141)' aad ou.~lu"i"f

a r ••lduo of aoh &ad tixed carbon. !he r ••ultlq g.... t.r.....l

tJoool,y to tho CODYDOOn ooponall,y ln tho pr•••aco of .to••

leaTing no .011d dopo.it. in the tu_oo. Ko.t of tho ,ao co.4en.o.

into dark oliTo Iroen 011, don.iV a1»out .942, tho yiold i.

actual pract.lco beiDl OftI' 40 ,allon. to tAB ton .f .bal.. In

&441t1on tiTO ,allono ot oru40 .pirit 1. obtalaod rr_ tho guo.

b)' con4on.atlon, whilo .0IIe oon.i4erablo qu_tlV of uacoDd.enoabl.

ga.oo resain.. The yl.1d f cr~de splrit ehould b. lnoroa.ed to

noarl,y 10 gallon8 POI' ton whoD ofticlont .cru1»b1Dl i. olllploy.4,

While the unconden.able gao could be u.od in firing tho r.tort.

/ .~ IGS 8. 600{'09

and should be sufficient for the purpose. At pre.ent half a ton of

wood-fUel i8 required per ton of shale. The wood i. obtained on the

propertie. but costs 5/- per ton to get. The use of gas would there.

for ensure a con.iderable saTing in the present cost of retortinc.

T&kinc the low aTerage yield of 40 lallons of oil per ton of shale,

thi. is subjected to fUrther dlstl11atlon and treat-ent at the Cam-

pany's works. It produces :-

6 gallons2 •2 •2 •

Crude splritBeaTY Kotor splrltTurpentlae sUbstltuteBeaTY enllne combus­tion or cleaning oil

6.G.S.G.

I.G.

.780

.800

.820

Deductlnc froa the remainlnc 011 2 lallons for loss durlnc dletl11a­

tlon, there r"'lns :-

32 lallons residue oil suitable for oil fuel S.G••950.

In addltlon 5 gallons of crude splrlt must be added to the first

prOduct, a&king 11 lallons ln all, a quantity which should be iu­

creased to about 15 or 16 gallons as the work progresse. and ia­

proTed plant lnstalled.

The crude oil is capable of produc1aC a good percentage of flne lu­

bricatine 011s which are at preseat neglected, but which could

easily be obtalned by suitable plant and treat-ent.

!he foll..inc table wl11 gl.e a lood ldea of the products of dls­

tillaUon:-

a AIZ,,

CBtmI 011.

CRtJDI SPIRIT

,USIDUAL OIL

•o

1 0

DAVY llIi 0

COlIBTJISTIOJl OR •~IBG OIL ·0

,GASOLID

,LtlllRICATIJIG TAROUI

GAS,..(Pll:IIIWJENl' GASCapable of be­inc used forfirlng purpo­ses. )

The nitrogen and paraffin contents ln the shale ara low so that DO

productien of ..-onium SUlphate r paraffln wax 18 to be expected.

The C.....~ produces howeTer a liquid which 18 hlghly thought ef

b.1 orchardlsts as a spr~ for wo117 aphis and such 11ke pests and

which sells profltably. Many other bye-products m~ be deTeloped

• 9. 6001110

in connection with the di.tillation, ••pecially di.infectants.

Th.r. i. much room for ch..ical r •••arch in the C~aQ1'.

Laborateri•• which in so04 haD4. wou14 r ••ult in a4ditional

p~ofit.. Th. by.-product. al.De pI'ovid. a ••parat. fi.14

which .~ yi.ld lar,.r r.turn. thaD the oil. th....lv•••

9. J'IJJ.AJlCUL ASnCTS AID DBULOPIID'l'S.

Without ,oin. into d.tail., the t.tal ainiDi &D4 di.tillation

charS•• now _ount to 14/8 per ton of .hal., a t11U1'. which

will c.rtaiDly be re4uc.d b7 the a40pthn of _th .. now und.r

c.neid.rat1~aDd b7 .xt.D4.d w ~1I:1D1 to about 10/. .1' ton.

At pr•••nt pric.. the C8IIpauy'. p~e4uct. w111 briac a return

.f about 3q(- p.r ton. iivi., a pr•••at iro•• profit .f about

per ton, and capable in the n.ar future of iaer... iDl to

p.r ton. liven th18 iiv•• no idea of the retun which

~ rea.onably b. .xpected if the plant be incr 4 in .i••

aDd .ffici.ncy and the r&DI••f preduct. incr d.

!he nominal capital of the C .., i. at pr•••nt ••0,000.

Wh.n the pr•••nt plant i. c8llpl.t.d and on the pr••ent It.it.d

.cale of workiDi. the 11'0•• annual pr.duc'••hould b. -banini

ace idente- ... ~oo per aDD_. I' clI:oniDi 300 work1118 dq. t

f ..naiea.nt. R.nt•• and D.pr.ciation aa4 .... all8W&DO.

.ad. f I' R•••rve •• ~,ooo w uld provide a r.turn of ~_

inter••t on the capital but it ill v.r, ual1k.17 that the chars··

••ntion.d would _ount to ...uoh .. balf the iro•• profit••

• 0 that a r.turn of consid.rably .ore thaa ~ 18 probabl••

YIlrth.r, an incr~aee .f capital expenditure pI' perly aa4., wou14

net ••an an increa•• in profit. b an incr.... II' at.r in pro­

portlon than the lncr.a. ln capital( lIver,thiDi that will in-

or.... the efficl.noy of plant will lead to incr.... in pro-

fit •• A further b.nch ef ret rt. wl11 b. requlr.d on the proper-

ti•• west" of the K.r••,. wh.n th properti•• are op.ned up. Witlt

a i r • at• r supply of crud. 011 it will be a.c•••ary te ooaetruct

a c.ntral Refin.r, fer tIa8 ip.r bl'anche. refil;liDi. '!'hi•• ipt be done on a c.nt~al • ,. 8ear the rail_7 p...iDl thepropertieB, or the ~ .il t be piped directly to Devon-port ( about sev.n di.) v,y ..&D8 of -----

- '10 10.600(11.1

3 or 4 inch pip•• and the R.~iner7 construct.d th.r. right

.t the .e.-port ~rom which the bulk of the oil must go for

di.tribution. In my opinion the latter scheme would be,,~

best. It would save railw~ charges all the materi.l.

reqUired in r.fininc. mo.t of which would have to be ta-

p rt.d, aa w.ll a. on the refined product. being ••nt to

the port for .xport. Again.t this would be the cart.g. of

wo04 fu.l to the Refinery which would not b. n.c••••ry in

the other ca... It would howev.r prob.bly be far che.per

to 1mport coal direct from Bewca.tle for this purpo•• , the

Ir••t.r effici.ncy of the co.l count.rb.lancing its high.r

price. A ~urther .ltern.tive m~ be found in the u•• of

oil ru.l where boil.r. are n.c••••ry. Some modern boil.r•

• uch a. the Bon.-Court boil.r .re especi.lly .uited to ~Ch

c.nditione and .tt.in a hiih.r .f~ici.ncy than the ordinary

ce.l-fired boilere .v.n with much small.r siz•••

Th. country i8 admirably adapt.d to • pip. line servic.. The

oil i. free runnina and i. not lik.ly to leave .olid d.po.­

it. which would clol. Th. li...hould b. buried 2 er 3

~••t underground and b. fitt.d with .xpan.ion loop. at int.r

val.. Kotor Trenchell ~or making .xc.v.tion. for the l~ing

of the pipes are u••d in AMric., en.bling • pip. 11n. to

be laid v.ry r.pidly. !he ,round n.ar Latrob. would provide

no ob.tacl•• to the u•• of .uch methods. The 011 would

prob.bly have to be p~.d to .tor..e tank. on one of the

hill. near the COIIIp&nY'. work. from whlch 1t would run by

gravitatlon down te the work••t Devonport.

10. COBCLtlSIO»S.

Th. gr••t advant..e of • eh.l. oil prepo.ition over oil

obtained from well. by borines is it. certainty. The oil

well 1. a .pecul.tion .t alltt1aes. Th. borina'may be a

f.l1ure ev.n in the mid.t of • prov.d 011 ~i.14 .nd the

life of the well can rarely b. predlcted. It i ••ubj.ct

to all .orte of trouble and diffioulti•• which are .bsent

in the case of oil shal•••

011 11. 600 (\ 12

c The disadvantage under which the oil shale labours is the

greater expense of i.tting and di.til1ing. A .uccessful

oil well doe. half the work itself an~ begins right awa7

with the production of oil. It may produc, oil for a few

week. or for many y.ar.. If the fOl'lller b. the ca.e h.aY)'

financjal los. ensu.s, if tbe latt.r~ the gain. are great

in proportion. But with .il shal•• the production i. known.

the extent of the d.po.it can be detel'lllined and the life of

the field at a given rat. of productlon for.ca.ted with .Qae

degree of accuracy.

If Au.tralia produo.d oil ln quantiti•• by a.an. of well. and

boring. it would be difficult to make a .hal. propo.1tlon

pay. but dep.nding ala••t entirelJ a••hl do•• on t.port.d

petroleum product. a looal develo~nt ot the indu.try would

be a great advantage to the whole c.ntln.at. Turnlng trca

gl..raliti•• to the pr•••nt prop.rtl•••• We have hII'. a

.upply of shale about whiCh th.re i. no speculative elea.nt

and whiCh wll1 take more than ,0 years to work .ut at an

av.rage rat. of productl.n. The estilll&te of ,t .illlon

tons is bas.d on actual ob.ervation. and m.a.ur...nt.. !h.

Shale pr.serv•• a reaarkably con.tant av.rage of quallty.

It di.til. easily and yield. aor. than 40 gallon. of crud.

oil to the ton whlch i. a b.tt.r av.rage than the tamou.

Scottish Oil Shale C~l.s can .how. The whlll of the

product. wl11 find r.ady mark.t. and little of the materlal

when mlned wl11 go to wa.te. even the sp.nt shale finds

a market as a land dr.ssing lII&nur•• Th. oil. are of good

quality. Bye-product••1.1ding v.ry con.id.rabl. pr.fit.

are l1kely to b. d.v.lop.d in the tutur•• The prop.rt1••

of the Company are .xc••dinglJ w.ll plac.d. the riv.r and

'"'railway b.ing clo.. at hand. '1'lab.r tor all P.rp•••• abouads

on the prgperties and is .awn by the Company'. 8WD al11.

A good de.p wat.r port i. only 7 mll.s away and the couatry

is very favourable for ch.ap transport by p1p~ 11n•••

600(l1312.

The tendency or a11 price. in connection with petrol wa

products is a risiQ& one. The demand i. even now potent-

ially if not actually in excess of tao sUPP17. It. Con.tat

supply would greatly increa.e the de..nd, for it has been

proved In maQY part. of the worlt that oil fuel whether fer

battle ship. or ships ot c~erce, tor ra1lwa7. er tor

tactoriee and for all purpose. where coal can be used is both

cheaper. more convenient and more etficient ln the production

of power than coal. With a larger and better plant, .liit-

able r.finerie., general eqaipaent, allot whlch will requlre

additional oapital, the C_paIQ' eholild with careful aad

efticient aanage..nt acquire a very 80wad p08itlon whlCh w1ll•be greatly to the advantaae of the State.

(Siened) ARtHUR WADZ.