Petroleum

by Albert Lidgett

India also ranks to-day as a very important petroleum producing region, the fields of Upper Burmah—in which the Burmah Oil Company operates—being responsible for practically the whole production. In another part of this little publication, I deal briefly with this Company’s operations, so, for the moment, it is sufficient to mention that, though to-day they produce large quantities of petroleum, there are several new districts which show much promise of new production. For many years the Upper Burmah fields were exploited by means of very shallow wells: it was only when the deeper strata were reached that the potentialities of the region became fully manifest.

AN OLD JAPANESE WAY OF OPERATING THE WELLS

Japan, as an oil-producing country, affords food for an interesting story, for it was here that very early attempts were made to develop production. Even in the seventh century, the Emperor was presented with “burning water” with which the Palace was lighted. The crude oil was collected from pools, or, alternately, wells were dug by hand, the process of extraction being very picturesque, if very primitive. To-day, Echigo is the centre of the industry, for which the introduction of European methods of drilling have worked wonders in regard to progress. The Celestials consume large quantities of petroleum, especially for lighting purposes, and in spite of the now considerable yields from the wells, a gigantic trade is regularly done in imported oils, especially those of American origin, for which there is a most up-to-date organization for distribution. The statement that American petroleum products find their way to every quarter of the globe is strangely exemplified in Japan (as also in China), where the ubiquitous tin container for petroleum can be seen in the most isolated parts.

THE GALICIAN FIELDS, SHOWING DAMAGE DONE BY THE RUSSIAN ARMIES WHEN RETREATING IN 1916

Galicia.—Since the commencement of the period when petroleum and its products assumed a degree of industrial importance, the Galician oil regions have attracted considerable attention. The area of the oil-fields extends over a length of 200 miles, and in width varies from 40 to 60 miles, and though in this territory several fields of considerable note have for many years been systematically developed, there is enormous scope for future operations. Its annual output of crude oil, which nearly reached 1,900,000 tons in 1909, is in itself suggestive of the extensive manner in which the oil-producing fields have been developed during late years. The oil-field history of Galicia is particularly interesting, for the oil seepages round Boryslaw have been exploited for very many years. Long before the introduction of the drilling methods of modern times, the shallow oil sources in the Galician fields were tapped by means of the hand-dug wells, but it was only when the first drilled well was sunk in 1862 that the real value of the Galician ozokerite, which abounds in many places in the oil-fields, was appreciated by the operators. This ozokerite is one of the most valuable of bitumens, and though found in several countries, is nowhere met with in such large quantities as in Galicia. The ozokerite there fills the fissures in the much disturbed cpaly, and evidently originates from a natural process of concentration. The mines are operated by modern machinery, and the industry in Galicia has reached a stage of great importance, some thousands of tons of the mineral being yearly raised. The material is refined, and the resulting wax serves numerous commercial purposes, the refining taking place in the Austro-Hungarian refineries. Considerable quantities of the raw material are exported to Germany and Russia, while the refined products are well known on the export markets. About seven years ago, serious water trouble materially reduced the production of the Galician oil-wells (for when the water courses are not properly shut off, water may encroach and cause the loss of the producing well), but the trouble was to some extent surmounted by the taking of greater care in cementing the wells. The introduction and consequent popularity of the modern drilling methods which were introduced by Mr. W. H. Margarvey in 1882 permitted the testing of the deeper horizons of the Galician fields, and to-day wells are by no means uncommon with depths up to and sometimes exceeding 4,000 feet. The Boryslaw-Tustanowice district still continues to be the centre of the crude oil production, but several new oil areas with great promise have been opened up during the past six years. Naturally, the European War has retarded development work considerably, and the Galician fields have on more than one occasion been the scene of battle. At one time in 1915 they passed over to the Russians, but when the Russian retreat occurred later from Lemberg, considerable damage was done to the fields in order to prevent their being of immediate use to the enemy. The wells were seriously damaged, and the State refinery at Drohobitz was partially dismantled, while immense reserves of refined oil stocks were burned.

The Galician oil industry has for years attracted the attention of foreign capitalists, for the highly remunerative nature of petroleum exploitation is generally appreciated. Prior to the European war German capital was very largely interested in the Galician industry, and the majority of Allied companies had Germans as their local representatives, but all this is now changed, and in the future Allied capital will be considerably increased. The Premier Company is the largest English concern in the Galician fields.

Germany has made great endeavours in the past to institute a petroleum industry of its own, but no great success has been recorded, for while it does possess several oil-producing areas, these are only small fields, with a very limited yield of heavy petroleums. The wells, though producing for many years steadily, do not give forth those large quantities of petroleum so characteristic of the best wells in other petroleum-producing fields, and flowing wells are indeed very rare. Germany, therefore, has to look to imported petroleum for its large demands.

In a succeeding chapter I refer at length to those oil regions which come within the limits of a chapter, “Petroleum in the British Empire”: there is no need at the moment to make reference to them here.